The Liberty County Board of Education intends to “opt out” of the provisions of House Bill 581.
School board members, who agreed unanimously to the decision, have until March 1 to file with the state Secretary of State their intent not to participate in HB 581. Passed last year and signed into law, HB 581 was written to provide property tax relief across the state. Using a floating homestead exemption, it caps property value increases at the consumer price index.
Other school systems across the state intend to opt-out of HB 581, according to reports, including Clarke Coun ty, Douglas County, Gordon County and Gainesville City Schools, and the state’s largest school system, Gwinnett County.
Local schools officials and those at other districts say the new law restricts their ability to collect property taxes.
“So if we say we’re opting in, it pretty much ties the hands going forward,” chair Verdell Jones said. “For the first few years, we might be OK. Down the road is where it could change.”
Chief financial officer Stephanie Clark said enacting the HB 581 provisions over the previous five years would have cost the school system $4 million in revenue.
Schools officials also pointed to the property tax as their only means of local revenue for general operations. Cities and counties can enact a LOST, or local option sales tax, and use its proceeds to fund day-today operations.
“We don’t have that power, and that’s major,” board member Carol Guyett said.
Special purpose local option sales taxes, or SPLOSTs, and those for the school system called ESPLOSTs, cannot have their proceeds directed toward day-to-day operations. Those must be spent on projects outlined on the ballot when put before the voters for renewal or rejection.
Clark reminded board members they have rolled back the millage rate but putting the homestead exemption in place may mean raising millage rates to offset the loss of property tax revenue.
“I think we’re all aware that our people in the community, it’s hurting them. Property values are skyrocketing,” Guyett said. “So hopefully we can keep it very reasonable. What really made my mind up is you have no leverage. We do have to build two new schools. We don’t have that power, and that’s major. It costs a lot of money to run a transportation system, a nutrition system, a financial system, an educational system and it’s all worth it because of that one child that is shining.”
The school board will hold three hearings on its “opt out” decision. The first one will be held at the board of education offices, 200 Bradwell Street, January 14 at 5 p.m. The remaining two meetings will be held at the school board offices on January 28 at 8:30 a.m. and February 11 at 6 p.m.