The City of Grovetown hosted the second of its required public hearings regarding House Bill 581, Tuesday morning, presided by Councilman Richard Bowman
Financial director Bradley Smith emphasized early in the meeting that the city had not yet decided whether to opt out of the bill’s homestead exemption, and that its consideration to do so is the legal impetus for the three hearings, the first of which was Jan. 30.
“We just want to consider all of our options,” Smith said. “This is a very heavy bill… There’s a lot of information to digest, especially when we start considering the future implications and by considering our options.”
Smith then made sure to offer some clarifications, including that the appraisal value of homeowners’ properties would not be limited by bill, and that their values would continue to increase based off the market.
MORE: Columbia County holds second public hearing on House Bill 581
“However, you will get an exemption, which is what this bill is all about,” said Smith. “You will get an exemption for an amount that your home increased in value in the appraisal any more than whatever the state decides.”
Should the city opt in on the exemption, Smith went on to explain, there would be an opportunity for a floating local option sales tax, or FLOST, an additional 1% sales tax, 100% of which that goes to the city would have to be used to reduce the millage rate.
“For example, if we receive… $2 million from our floating local option sales tax, we have to reduce our millage rate for that same amount based on what we’ve collected,” Smith said. “So that our citizens would not see the increase, we would see a potential further decrease in property taxes.”
Smith also noted that the bill would not have any effect on any exemption currently in place, and that 60% of the city’s tax bill goes to the school district, 25% to the city and 15% to the county.
MORE: Second school district public hearing stokes debate around House Bill 581
“So today, here in this meeting, we’re only talking about that 25%,” he said. “We do not have control over what the county decides we do not have control over, what the school district decides. We can only make a decision for Grovetown.”
The city’s next meeting is scheduled for Feb. 11 at 2 p.m. in the council chambers at Grovetown City Hall.
Skyler Andrews is a reporter covering business for The Augusta Press. Reach him at skyler@theaugustapress.com.
