Bibb County school board swiftly opts-out of homestead exemption

The Bibb County Board of Education voted unanimously Wednesday afternoon to opt-out of a state homestead exemption meant to limit property assessment increases, a measure school board officials saw as a limitation on funding.

House Bill 581, passed by state legislators last year, created a statewide “floating homestead exemption” and an additional sales tax to offset losses on property tax from the exemption.

The bill was ratified into the state’s constitution after voters passed the measure on their ballots. Local municipalities then had the option to opt-out of the homestead exemption if they held three public hearings.

The Bibb County school board, one of two taxing entities in Bibb County, held the first of three public hearings to opt-out in January.

After two more public hearings Wednesday, the school board quickly convened and opted-out. 

School board member Daryl Morton said the district is making the decision to opt-out amid “uncertain financial times” caused by state legislation, the federal funding pause and talks of dissolving the Department of Education.

“We have to have revenue flexibility because we just do not know what’s going to happen,” he said.

Property taxes are calculated by multiplying the millage rate — one mill equals 0.1% — with the assessed value of property, or 40% of the fair market value. Property values are regularly adjusted via appraisals.

The floating homestead exemption limits increases on a property’s assessed value to the rate of inflation. The state already has a standard $2,000 exemption that can be used to deduct from a home’s fair market value and some municipalities have their own exemptions. 

With the board’s decision, the opt-out will be locked in for the next 50 years. Macon-Bibb County has until March 1 to decide whether or not the county will opt-out.