Augusta officials will attempt to explain options for a new local homestead exemption at a Tuesday public information session.
The Augusta Commission voted last month to opt out of House Bill 581, which capped property assessments at the rate of inflation. But members promised to create a new local homestead exemption that offers similar tax relief to homeowners.
Augusta Administrator Tameka Allen said the city “looked at many of the options” to present to commissioners. The administration will host a public information session on options the city is considering Tuesday, prior to a likely commission vote later that day.
Options for the local plan would require voter approval and would likely make possible Augusta imposing an additional sales tax, or FLOST, Allen said. The extra half-cent tax was discussed as a way to replace revenue lost to the homestead exemption.
Scott Rountree, Augusta’s chief tax appraiser, earlier this week outlined three approaches under consideration for indexing a property tax cap. Each would be used to cap the amount of a property’s value for tax purposes.
- Consumer Price Index (CPI): Similar to that used under House Bill 581, this index averaged 2.5% over the past 30 years, Rountree said. Its use provides the potential for a tax “shift” to non-homesteaded property when valuations increase rapidly.
- Housing Price Index (HPI): This index has fluctuated significantly over the last three decades. The HPI offers the greatest potential for homeowner savings, but it also poses the risk of the highest tax shifts onto non-homesteaded properties, he said.
- Flat Rate Cap (3.5%): This approach provides a fixed percentage cap regardless of market fluctuations. A cap of 3.5% aligns with the 30-year average HPI in Augusta.
“With each option, we know there will be upward pressure on the millage rate. There would be a tax shift,” Rountree said.
The information session is scheduled for 1 p.m. Tuesday in the Lee Beard Commission Chamber at Augusta Municipal Building.
