The city of Madison will not opt out of HB 581.
Councilman Rick Blanton made a motion to that effect at the city’s regular Feb. 10 meeting. The motion passed by a vote of 3-1, with Carrie Peters-Reid as the lone opposition.
During its work session on Jan. 31, the council held its first substantive discussions of the controversial bill linking property tax increases to the inflation rate.
The bill creates a window for municipalities, counties, and boards of education to levy a 1% sales tax for property tax relief if voters approve a referendum. The inflation rate will be based on the Consumer Price Index set by the Georgia Department of Revenue.
Councilmembers put off a decision in the interest of hearing from working citizens during the evening meeting since it is more difficult for many of them to attend the morning work sessions.
County Manager Adam Mestres and Commissioners Blake McCormack and Ben Riden attended the work session. They listened to the city discuss HB 581, which the city and county must decide on by March 1.
According to Madison City Attorney Jay Crowley, under the provisions of HB 581, property values would increase by approximately 2 to 4% each year. The legislation was created in response to escalating property value assessments over the last several years.
According to documents available at legis.ga.gov, a home's base year assessed value is set by its 2024 value and resets whenever it is sold or receives a substantial property change.
HB 581 also allows cities and counties to levy a floating local option sales tax (FLOST) of up to 1%. Madison’s sales tax rate is currently 8%, and adding a FLOST would raise it to 9%, the maximum allowed by the state.
Counties and cities can opt out of HB 581, but they must hold three public hearings before the March 1 deadline. Thus, there is less than a month to decide.
Last November, almost 65 percent of Morgan and Greene County voters approved the constitutional amendment involving HB 581. According to Blanton, Madison’s results were similar, with 1,394 voting in favor and 787 against.
“I think if our citizens have spoken as to what they would like, and this was their choice, I don’t know how we as a city can go back and renege on what the voters of our city have asked us to do,” Mayor Fred Perriman said.
Councilman Eric Joyce said the bill could have been improved, but it wasn’t.
“It’s pretty clear to me that an overwhelming number of our citizens want this,” Joyce said. “I can’t see voting against an opportunity to get some relief on our property taxes.”
Peters-Reid expressed concern about how well voters understood the legislation.
“Yes, they did make a statement, but some of them probably hit yes or no and walked out because what was important was the presidential race and the sheriff’s race,” Peters-Reid said.
HB 581 was passed by the Georgia General Assembly on March 28, 2024, and signed by Gov. Brian Kemp on April 18, 2024. The bill was then approved by voters statewide on Nov. 5.