Agenda Item
b. Resolution to Opt Out of HB581 ~ Statewide Homestead Exemption ~ Updated 2.11.2025
Summary: Presented by: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance
Request: It is requested that the board of education approve a resolution to opt out of the statewide homestead exemption established by house bill 581.
Why: To maintain local control over tax policy, flexibility in revenue management, maintain a downward trajectory of millage rate for all taxpayers, and maintain competitive compensation for employees.
Details: The bill establishes a floating homestead exemption that effectively limits tax increases created by the appraisal or valuation process. As real estate values have risen dramatically in the past decade, there has been corresponding growth in the tax appraised value and tax assessment if taxing authorities don’t act to proportionately roll back the millage rate.
In response, HB581 was born. This bill creates a floating (aka fluctuating) homestead exemption that limits annual tax increases to homeowners to no more than the rate of inflation as measured by CPI.
Financial impact: If HB581 was enacted in 2017 and the floating homestead exemption was established the same year, the amount of exempted taxes in the following calendar year would have been $31.7M.
This calculation is from the actual digest value of homesteaded properties only. For DeKalb, roughly 46% of the digest value is attributable to homesteaded properties.
As we roll these calculations forward using actual annual inflation as measured by CPI, year over year, and the actual homesteaded digest reassessment growth (provided by the tax commissioner) the compounding effect that the floating homestead exemption would have had on our overall property tax collections is significant.
As the floating homestead grows so does the amount of exempted taxes. If we roll this forward all the way to the district’s current fiscal year, FY2025, the amount of exempted taxes would have been $197.7M. To put that into perspective, that is 20% of our overall anticipated tax revenue for this fiscal year. At an average teacher cost of $104,313.12, that is 1,895 teaching positions or nearly a quarter of our teacher workforce.
Contact: Mr. Byron Schueneman, Chief Financial Officer, Division of Finance, 678-676-0270
Effective: March 1, 2025
Status: Attorney Approval Not Required
RESOLUTION OF THE DEKALB COUNTY BOARD OF EDUCATION
OPTING OUT OF THE HOMESTEAD EXEMPTION OTHERWISE
GRANTED BY CODE SECTION 48-5-44.2 (HOUSE BILL 581) WITH
RESPECT TO THE DEKALB COUNTY SCHOOL DISTRICT
WHEREAS, Official Code of Georgia Annotated Section 48-5-44.2, effective January 1,
2025, creates a statewide homestead exemption from ad valorem taxes levied by, for, or on behalf
of the state or any county, consolidated government, municipality, or local school district in this
state; and
WHEREAS, Code Section 48-5-44.2(i) authorizes the governing authority of any local
government or school district to opt out of the homestead exemption otherwise granted with
respect to such political subdivision through certain procedures and the adoption of a resolution
by March 1, 2025; and
WHEREAS, the DeKalb County Board of Education for and on behalf of the DeKalb
County School District desires to opt out of the homestead exemption otherwise granted; and
WHEREAS, the DeKalb County Board of Education has complied with the required
procedures pursuant to Code Section 48-5-44.2(i), including but not limited to, holding at least
three public meetings on its intent to opt out, placing the required advertisement in a newspaper of
general circulation and on its website, and providing a press release to the local media, all as
required by Code Section 48-5-44.2(i); and
WHEREAS, DeKalb County Board of Education does hereby ratify the actions of the
DeKalb County School District to perform and complete the various required procedures in
accordance with Code Section 48-5-44.2(i);
WHEREAS, the DeKalb County Board of Education adopts this resolution to evidence and
effectuate its election to opt out of the homestead exemption otherwise granted by Official Code
of Georgia Annotated Section 48-5-44.2 for and on behalf of the DeKalb County School District;
NOW, THEREFORE, BE IT RESOLVED, that the DeKalb County Board of Education
for and on behalf of the DeKalb County School District hereby opts out of the homestead
exemption otherwise granted by Official Code of Georgia Annotated Section 48-5-44.2; and
FURTHER RESOLVED, that this resolution shall become effective upon a copy of this
resolution being filed with the Georgia Secretary of State as provided by Code Section 48-5-
44.2(i)(3), and counsel for the DeKalb County Board of Education or the Superintendent or both
are hereby directed to provide a certified copy of this resolution to the Georgia Secretary of State
no later than March 1, 2025.
Adopted this 10th day of February, 2025.
DEKALB COUNTY BOARD OF EDUCATION
By: ___________________________
Deirdre P. Pierce, Chair
DeKalb County Board of Education
ATTEST:
____________________________
Dr. Devon Q. Horton, Superintendent of the
DeKalb County School District and
Ex-Officio Secretary of the
DeKalb County Board of Education
CERTIFIED COPY OF RESOLUTION
I hereby certify that I am the Superintendent of the DeKalb County School District and the
Ex-Officio Secretary of the DeKalb County Board of Education, that the foregoing resolution of
the DeKalb County Board of Education constitutes a true and correct copy of a resolution adopted
by the DeKalb County Board of Education on February 10, 2025, in a meeting duly called and
assembled, which was open to the public and at which a quorum was present and acting throughout,
and that the original of said resolution appears of record in the records of the DeKalb County Board
of Education which is in my custody and control.
IN WITNESS WHEREOF, I have hereunder set my hand as said Superintendent and Ex-
Officio Secretary and have caused the official seal of the DeKalb County Board of Education to
be affixed hereto, this the 10th day of February, 2025.
(SEAL) ____________________________
Dr. Devon Horton, Superintendent of the
DeKalb County School District and
Ex-Officio Secretary of the DeKalb County
Board of Education