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On Monday morning, the Troup County School Board held its third and final hearing on HB581, a floating homestead exemption. 

The amendment, passed in November by over 60 percent of voters locally and statewide, allows entities that collect property tax to opt in or out of the exemption. The board stated in a press release published on Jan. 11 in the LaGrange Daily News that it intends to opt-out. The bill says entities must hold three public hearings before filing to opt-out. 

 The exemption would cap annual increases in property values for tax purposes and impact property taxes for cities, counties, and school districts. The board has argued in the previous public hearings that opting into the exemption would do away with local tax control. This would make it difficult to respond to market fluctuations, necessitating altering the millage rate. 

If a county, city, or school district opts into the exemption, it cannot opt-out in future years. 

There was only one speaker during the hearing on Monday morning. 

Skylar Shephard spoke in opposition to opting out of the exemption. 

“I don’t think it is really fair to the people that this house bill will benefit. In November, we had a chance to vote on which way they wanted to go, if they wanted to opt in or opt-out…In Troup County 65 percent of the voters voted to opt in. I think that is a major consideration,” Shepherd said.

Board Member Alan Simpson addressed this comment saying, “The public did not vote to opt in, with this bill, it gave us the option to opt-out and they put that in the [bill language] because they understood the uniqueness of every municipality, county, consolidated government or local school system. You did not vote to opt in, you simply voted for the bill itself, and that bill gave us the latitude to opt out of it based on our own needs.”

Shepherd said she was concerned that opting out would negatively impact homeowners. 

“Clearly, this bill matters to the average homeowner who struggles monthly to make it, some only on social security, ” she said. “[As] taxpayers pay money, we pay school taxes, we support school issues, we are all chipping in in several ways…we are already engaged.”

Board Member Dan McAlexander argued that the board had taken measures to address the concerns of homeowners on fixed incomes. He cited the passing of senior tax relief in December by the board. 

“We are not looking to grab money, we are looking to preserve our capacity to do what is best both for the citizens and what is best, certainly, for the students, which is our pledge,” McAlexander said.  

What I am hearing is the board is opting out without the citizens and that you are more concerned about businesses surviving than homeowners,” Shepherd said, referring to a comment in the original press release saying the tax burden would shift to ‘businesses and income-producing rental properties’.

She added, “I think the state government is needed to help control the buddy-buddy system of local government. Find other ways to cut spending where you are not hurting [HB581].”

Following the period for public comment, the board members addressed Shepherd.

“I want to make it clear that the board hasn’t made a decision on opting out. So we are still trying to decide what to do,” said Anne O’Brien.

Board member Tripp Foster said that there is better accountability at the local level than the state level. He, like Simpson, addressed the language of the bill. 

“What you and I saw on the ballot was a little paragraph and it had strong implications that they were going to do better transparency up there, better accountability and hopefully a discount. That is what I read. But after much discussion…I felt, as a voter, that I was deceived…If you have seen what I’ve seen and heard what I’ve heard, it might possibly make you reconsider your stance on that, but at the end of the day, regardless, I respect you.”

The board must pass a resolution opting in or opting out of the exemption by March 1. The next work session will be held on Feb. 18 and the next board meeting will be held on Feb. 20.