Augusta officials held the third of three required public hearings on House Bill 581 Tuesday, but the city commission postponed making a final decision until next week.
The city is required to hold the hearings because it is considering “opting out” of the bill’s provisions calling for an additional “floating” homestead exemption and optional sales tax.
Local groups, including the Augusta Metro Chamber of Commerce, are actively campaigning in favor of opting out, saying decreased residential taxes will shift the burden to commercial property owners.
A handful of citizens have spoken out in favor of keeping the exemption.
MORE: RCBOE make decision to opt out of House Bill 581
Speaking in favor, former Commissioner Moses Todd said the Georgia General Assembly’s intent in passing HB 581 “was to give relief to homesteaders of real estate” rather than relief to commercial properties or commerce, Todd said.
Meanwhile, a bill is pending in the state House that would move the deadline to opt out from Saturday, March 1 to March 31, 2029, a four-year extension.
In an article about House Bill 92, Association County Commissioner Georgia Executive Director Clint Mueller told Capitol Beat News Service that local government fears were overblown.
“This whole the-sky-is-falling mentality doesn’t wash,” he said.
Commissioners, most of whom did not attend the public hearing, voted at their regular meeting Tuesday to decide the matter at a called meeting next Tuesday, but also to “look at other avenues.”
Commissioner Wayne Guilfoyle questioned the number of homeowners the exemption would benefit. Only about half of Augusta homes are owner-occupied.
“It’s only going to help a handful of people; it’s going to hurt a lot,” Guilfoyle said.
Commissioner Francine Scott said the delay would allow the commission to “look at some options” and check the status of House Bill 92.
MORE: Columbia County holds final public hearing on House Bill 581
About 40 attend public hearing
About 40 attended the public hearing earlier Tuesday.
“I’m distressed that seven of our commissioners are not here at a public hearing,” said attendee Dan Funsch, a retired educator.
Funsch said voters approved the tax break and knew what they were doing, while the city should cut back if it needs to save.
“Just like each citizen, the city needs to live within its means,” he said. “I see us buying millions of dollars of stuff. The parking lot is full of brand new cars.”
Attendee Alicia James claimed any tax savings could be wiped out at the time owners “sell their house or die.”
A homestead exemption lasts the length of time an owner lives in a home and will pass to a surviving spouse, but the exemption resets each time a property changes hands.
Chamber consultant Sue Parr repeated the chamber’s message that the exemption represents a “tax shift” toward greater reliance on commercial taxes because homesteaded properties are capped.
Any increase will create “cost pressure” for rentals, she said.
