By Rebecca Gaunt

City manager Jeff Drobney recommended at Monday’s City Council work session that the City of Kennesaw opt out of the House Bill 581 homestead exemption.

The intent of the new state law, passed in 2024, was to limit rapidly rising property taxes across the state and impose a statewide floating homestead exemption. Local governments, such as counties, cities, and school systems, may opt out after holding three public hearings.

Drobney explained during his presentation that while homeowners would see no difference whether Kennesaw opts in or out, not opting out would increase the administrative burden for the city.

“If your local government has an existing homestead exemption…the taxpayer will receive the exemption that is more beneficial. And as you know, we have a floating homestead freeze, and so the exemption that we have is and always will be more beneficial than House Bill 581.”

Each home with a floating homestead exemption has an established base year value which does not change unless some improvement is made to the property.

“If you purchased your house in 2000, unless you’ve added on a pool and all these renovations and two or three bedrooms…the property taxes for the M&O [maintenance and operation] that you paid in 2000, are the same property taxes you paid for M&O in 2024. There has been no change,” he said.

It does not affect taxes for the schools.

“That’s separate. That’s on them,” he said.

Jennifer Gordy, the assistant finance director for Kennesaw, presented on how the two options would affect Kennesaw residents with exemptions differently.

Using a house purchase cost of $100,000 as an example, under Kennesaw’s current exemption, in year two, even if the house appraised for $110,000, the owner would receive a $10,000 exemption and still pay the M&O property taxes based on the $100,000 purchase price.

Under HB 581, in year two, if the value increased to $110,000, the value would be adjusted for inflation as decided by the State Revenue Commissioner. Using an example of 2%, the adjustable base value would be $102,000. The exemption would only be $8,000 and the taxes would be collected on the $102,000 value.

Cobb County and the cities of Acworth, Powder Springs and Marietta, as well as Marietta City Schools, have already announced their intentions to opt out.

Mayor Derek Easterling and the City Council gave Drobney the go ahead to place the required legal notices of the city’s intent. 

The three required public hearings will be at City Hall in Council Chambers on Jan. 27 at 6 p.m., Feb. 3 at 10:30 a.m., and Feb. 3 at 6:30 p.m.

The state deadline is March 1.

Rebecca Gaunt earned a degree in journalism from the University of Georgia and a master’s degree in education from Oglethorpe University. After teaching elementary school for several years, she returned to writing. She lives in Marietta with her husband, son, two cats, and a dog. In her spare time, she loves to read, binge Netflix and travel.