PUBLIC NOTICE: Intent to Opt-Out of Homestead Exemption
The City of Lilburn Mayor and Council intends to opt out of the statewide adjusted base year ad valorem homestead exemption for the City of Lilburn.
All concerned citizens are invited to the public hearings on this matter to be held at Lilburn City Hall, located at 340 Main Street, Lilburn, GA 30047 on the 2 nd floor of Lilburn City Council Chambers, on Monday, February 3, 2025, at 10:00 A.M. and 6:00 P.M.
The time and place of an additional public hearing on this matter is at Lilburn City Hall located at 340 Main Street, Lilburn, GA 30047 on the 2 nd floor of Lilburn City Council Chambers, on Monday, February 10, 2025 at 4:00 P.M.
PRESS RELEASE: Lilburn Considers Impact of Floating Homestead Exemption
Media Contact:
Rick Badie
Public Information Officer
Office: 770-638-2225
rbadie@cityoflilburn.com
January 29, 2025
A new state law, O.C.G.A § 48-5-44.2, provides a mandatory process local governments must follow to consider the costs and benefits of a statewide floating homestead exemption on its residents and operations. The City of Lilburn encourages residents to provide feedback on the proposed homestead exemption, and the City will hold three public hearings seeking public input. The public hearings will be held at Lilburn City Hall, 340 Main Street, Lilburn, Georgia 30047 on Monday, February 3, 2025, at 10 am and 6 pm and on Monday, February 10, 2025, at 4 pm.
The City of Lilburn offers three types of homestead exemptions catered to benefit the community’s unique needs. The exemptions provide relief to city residential property owners who occupy their property by reducing the assessed value of their property by $5,000 or $10,000, reducing city property taxes owed annually. For more information on the city’s homestead exemptions, please visit www.cityoflilburn.com.
The new state law establishes an additional homestead exemption that reduces the assessed value of owner-occupied property to the annual rate of inflation as determined by the Georgia Department of Revenue. The exemption is considered “floating” as the value of the exemption is not a set dollar amount. Rather, the value of the exemption is the difference between the adjusted base-year value and the fair market value, changing annually. The example below demonstrates the impact of the new state law on qualifying property in Lilburn:
Residential Properties A and B have fair market values of $100,000 in 2024. The homeowners do not make substantial changes to their properties in 2025. Property A’s fair market value increases to $103,000, or the rate of inflation, and Property B’s fair market value increases to $110,000, an increase of 10%, in 2025. Assuming the City’s 2025 millage rate is 4.430, and both properties receive the City’s homestead exemption of $5,000, the property taxes due to the City would be $160.37 for both properties.
The legislation provides a process by which local governments may consider opting out of the statewide floating homestead exemption, and the process must be completed by March 1, 2025. Every local government is affected by the exemption differently based on its tax digest mixture (commercial, industrial, office, residential, vacant, etc.) and the average longevity of homestead properties. The City of Lilburn anticipates being particularly impacted because of the high percentage of stable residential properties in its tax digest. Over 90% of Lilburn parcels are residential and 61% of those qualify for the homestead exemption.
The City conducted an analysis to compare property tax revenue received in 2021, 2022, and 2023 to the property tax revenue it would have received if the statewide floating homestead exemption had been in effect over the past three years. Results show an estimated loss of revenue of $1.6 million over that period, assuming the tax digest increased 3% per year. This loss represents 4.3% of the City’s current annual general fund budget. To fund the City’s current operations, the 2024 millage rate would need to be increased from 4.430 mills to 5.668 mills, an increase of 30%.
The City of Lilburn cannot absorb the reduced revenue and continue to maintain high quality services at their current levels. An increase in the millage rate or a reduction in services would be required to cover operational expenses to balance the budget. Opting out of the statewide floating homestead exemption provides the City needed flexibility to meet demands, provide services, and balance its budget with stability. This summary is provided to satisfy the requirements of HB 581 (O.C.G.A. Sec. 48-5-44.2(i)).
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