Crisp County School District Holds Public Hearings on House Bill 581
Crisp County, Georgia – January 13, 2025 – The Crisp County Board of Education is inviting
public input on House Bill 581, which was passed by the Georgia General Assembly in 2024 and
signed into law by Governor Brian Kemp on April 18, 2024. This important legislation, which
was approved by a majority of Georgia voters in the November 2024 election, includes key
changes to the state’s property tax system that could significantly affect local school districts,
including Crisp County School System (CCSS). The Board is holding public hearings to gather
feedback from the community, and a schedule of these hearings can be found on our website.
What is House Bill 581?
House Bill 581, also known as House Resolution 1022, has three major components:
1. Statewide Homestead Exemption – This exemption limits the increase in taxable value
of homes to no more than the inflation rate from the prior year.
2. Opt-Out Provision for Local Governments – Local governments have the option to opt
out of the homestead exemption within their jurisdiction.
3. Floating Local Option Sales Tax (FLOST) – The bill authorizes county and city
governments (but not school districts) to levy a new sales tax to provide property tax
relief.
Under HB581, property values are capped at the rate of inflation each year, which limits the
potential revenue generated from property taxes. However, school districts like CCSS rely
heavily on these taxes for funding, and this limitation could significantly impact local schools.
How Will HB581 Impact Crisp County Schools?
CCSS receives approximately 19% of its total funding from property taxes. The restrictions
imposed by HB581 could reduce the amount of revenue the district collects unless the millage
rate is raised. Currently, the district maintains one of the lowest millage rates in the area at
13.785 mills.
Additionally, HB581 will impact the Quality Basic Education (QBE) Local Five Mill Share (LFMS)
and QBE Equalization funding. The LFMS contribution will be calculated on the higher tax
digest number, creating an additional financial burden on CCSS. The district could also see a
reduction in QBE Equalization funding, which is based on the district’s tax digest relative to the
state’s overall property wealth.
Implications for Local School Districts
HB581 does not include a provision for school districts to implement a Floating Local Option
Sales Tax (FLOST), which limits the ability of school districts to raise new revenue in response to
rising costs. Rural and low-income districts, which depend more heavily on property taxes, may
be disproportionately affected. As previously mentioned, city and county government may
recover lost revenue through the FLOST.
What Are the Options for CCSS?
CCSS has the option to opt out of the HB581 homestead exemption by passing a resolution
following a public hearing process. This process must be completed by March 1, 2025. If the
district opts out, it will not affect any existing local school tax homestead exemptions currently
in place.
How Can the Public Get Involved?
The Board of Education encourages all members of the community to attend the public
hearings to learn more about the potential impacts of HB581 and provide their feedback. The
Board is committed to ensuring that local residents are well-informed and involved in the
decision-making process.
For more information about the public hearings and how to participate, please visit the Crisp
County School District website at Press Release on HB581 Public Hearings.
This press release is a public invitation for transparency, allowing local residents to have a voice
in the decision-making process surrounding House Bill 581 and its potential impact on
education funding.