At a Feb. 11 meeting, The Columbia County Board of Education ushered in the conclusion of a months-long discussion around a homestead exemption tax, tying up loose ends with a 3-2 vote in favor of the district opting out of House Bill 581.
This decision comes after three recent public hearings, a required condition for school districts to finalize the opt out process.
A closer look at the bill
House Bill 581 (HB 581) provides relief and clarity to taxpayers by offering a statewide floating homestead exemption, an optional sales tax to further offset property taxes and property tax process reforms.
The homestead exemption changes the way homestead properties are reassessed for taxable purposes each year. It caps the percentage a home can be reassessed each year by a rate established by the state revenue commissioner.
MORE: Grovetown residents show support for opting out of HB 581
Opting out is a desirable option for school districts. Before Tuesday night’s meeting, the Columbia County School District’s Chief Financial Officer, Alex Casado, said that opting in would negatively impact property tax revenues for the school district.
He added that the hypothetical estimated revenue loss, if the house bill had been in place for the past five years, would be almost $11.9 million per year.
The public’s reaction to a potential opt out has included a mix of perspectives; Some hoped the district would opt in to HB581 in order to help homeowners combat rising property assessments while others seemed to support the opt out, seeing it as an obvious benefit to local schools and students.
‘It’s been a tough decision for all of us:’ board members sound off
For Chairman David Dekle, this decision represents a mechanism for keeping area schools fiscally sound. Had the district opted in to HB 581, he said, “the school district [would] be faced with…financial pain in a very short time.”
Repudiating the opt out was one of two new board members, Katie Allen, who urged her fellow board members prior to the vote to uphold the wishes of the community. Allen, along with board member Philip Kent, voted against the opt out.
“I do see that residents voted for [House Bill 581] at over 70%…my takeaway is that they’re very confident in what they voted for,” said Allen, in a personal comment. “And I just have so much faith that this board can honor that intent of the public and also still provide a high quality of education for our students.”
MORE: Augusta holds second hearing on opting out of House Bill 581
Board member Kristi Baker said she’s aware that some of the public’s hesitation around the opt out stems from its lasting power – once in place, the opt out decision will hold for 50 years.
“It’s a very tough bill…it’s been a tough decision for all of us,” Baker commented.
