Chatham County voters pass school tax homestead exemption

CHATHAM COUNTY, Ga. (WTOC) - Chatham County voters said yes to a referendum that will allow homeowners to apply for a new homestead exemption.

Georgia legislators who pushed for it, say it will freeze the school tax value.

Republican Representative Republican Representative Jesse Petrea told us this will have a direct impact on Chatham County property owners, specifically when it comes to school taxes. The Chatham County schools tax relief act passed election night with 79% of the vote.

This exemption will use the property’s base-year value to determine school taxes. Previously, it would be calculated based on annual increases in inflation. The school system has raised concerns about whether they’ll be able to collect enough money to fund schools.

Following the vote, no one on the school board would talk with us at Wednesday’s board meeting about the issue.

A spokesperson for the school system sent us a statement saying local taxes are critical but they’re still trying to determine what the full impact will be of Tuesday’s vote.

SCCPSS recognizes the concern of homeowners facing rising property tax bills as a result of increasing property valuations and the intent of HB 782 as a measure offering predictability for the taxpayers.  The school district relies on local tax revenues as a critical resource and we are monitoring the potential impact of operations; however, the full impact of this bill cannot be immediately projected.  We do know it certainly stands to limit potential future revenues.  Our steps to reduce expenditures, implement strategic spending priorities, strengthen financial monitoring processes, and improve long term financial forecasting is paramount.  We have taken steps over the last two budgets cycles to further align revenue needs that prioritize spending with priorities that support student success.  

At the same time, we must be transparent about the potential consequences for the school district’s fiscal stability and our ability to invest in programs for students.

Potential Impacts on School District Revenue

• Because the exemption decouples local school property tax revenue from growth in assessed values, there is a risk of revenue shortfall for SCCPSS. 
• Although enrollment has declined (reflective of statewide trends) and costs have increased (e.g., special education, mental-health services, state retirement/benefit obligations), current revenue allows for high quality services to continue. Reducing revenue growth may hamper that responsiveness.  
• At this time, there is no way to know exactly what the future impact of this bill will be.

We look forward to prudent, collaborative discussions with the Board, local government partners, and community stakeholders to ensure that every dollar invested in our schools drives student success and community vitality.

SCCPSS

We asked Petrea for his response to the school system’s concerns.

“If the school board needs more revenue, they can simply vote to raise the millage rate. So if you want to raise taxes, stand before the people, and vote and then accept responsibility for raising their taxes,” said Petrea.

We also asked Petrea about a timeline in which homeowners can start to apply for the new homestead exemption if they feel they need it.