House Bill 581 and How It Affects You

During the 2024 Legislative session, the Senate and House leaders were concerned about rising property value assessments and in turn property tax. To relieve stress on their constituents, HB 581 was signed into law on April 18, 2024 contingent upon the November Statewide Referendum which was approved in Gwinnett County by a 63.72% margin.

The major components of the bill that will affect you includes a statewide floating homestead exemption.  This bill will take effect January 1, 2025 for all property owners with a homestead exemption provided that the counties, municipalities, or school boards do not vote to “opt out.”

A floating homestead is a special type of homestead exemption designed to offset or reduce increases in taxable value to the property, also known as a Value Offset Exemption (VOE).  This exemption differs from a “Freeze” as it includes and annual inflationary adjustment.

This new exemption works by increasing the value of the exemption to offset inflation.  The 2024 base year assessed value will be adjusted each year by a rate of inflation determined by the State Revenue Commissioner (most likely CPI) of the previous year.  For homes first receiving the exemption in later years, the base year assessed value will be the assessed value for the immediately preceding year.  Like other homestead exemptions, the value will be reset when the home is sold and is adjusted to current assessed value.  Homeowners cannot transfer exemption to a new property.

Need to Know Results:

  1. NO action is necessary for those homeowners already granted a homestead…this exemption will automatically apply to your property and is in addition to and NOT in lieu of local exemptions.
  2. The taxable value of a home may only increase at a rate of inflation each year which essentially controls how much the “value” of a home can increase annually for tax purposes.
  3. Non-homesteaded property (i.e. Commercial Property) will continue to be valued at fair market value.
  4. Homestead Exemption Application may be applied for online at www.gwinnetttaxcommissioner.com You must apply by April 1 to be eligible for an exemption that year. This date is governed by law. All homeowners who occupy their homes, seniors 62-64 or 65+, 100-percent disabled homeowners, surviving unremarried spouses of military peace officers, or firefighters killed in the line of duty SHOULD apply for exemption.