On Thursday evening, the Troup County School Board officially voted to opt out of the floating homestead exemption allowed by HB581.

The option was approved by a referendum in November by over 60 percent of voters both locally and statewide, allowing entities that collect property tax to opt in or out of the exemption.

TCSS previously announced in January that it intended to opt out,  holding three required public hearings where numerous citizens voiced opposition to the decision.

The exemption caps annual increases in property value assessments for tax purposes for cities, counties and school districts. If they choose to opt in, they are allowed to assess a 1 percent sales tax to make up the difference.

The board has argued that while cities and counties can assess the sales tax, they cannot. The board has also argued that opting into the exemption limits local tax control and makes it difficult to respond to increased costs, potentially necessitating an increase in the millage rate.

The biggest issue is that if a county, city, or school district opts into the exemption, it cannot opt out in future years. 

Board Member Anne O’Brien acknowledged the opposition to the decision and said it was not an easy choice.

“We appreciate the community being involved in the hearings that we had, appreciated their comments and listened to those comments, and certainly take those into consideration. We’re making our vote tonight,” O’Brien said.

Ultimately, the board voted unanimously to opt out of the exemption, 7-0.