The City of Savannah will hold three public hearings in February to address Georgia State House Bill 581 with the intent of opting out. HB 581 creates a statewide homestead exemption. Savannah property owners currently receiving the Stephens Day Homestead Exemption are afforded greater protections and lower taxes than what would be provided by HB 581.

By opting out of HB 581, the City of Savannah will help protect property owners from potential tax increases. If the City opts into HB 581, the new exemption could conflict with the existing Stephens Day Homestead Exemption, leading to higher property taxes for those who currently benefit from it. 

In the 2024 legislative session, the Georgia General Assembly passed House Bill 581, which was signed into law by Governor Kemp on April 18, 2024. The bill provided for several significant changes impacting local government revenue. 

The three major components were a procedural change to property tax assessments and appeals, a new statewide homestead exemption that applies to local governments unless that government body affirmatively opts out, and a provision to create a new local option sales tax. 

As outlined in state constitutional amendment HR 1022 and HB 581, the process for opting out is similar to the “public notification of a tax increase” process that is required when a local government does not fully rollback its millage rate. To opt-out, the City must advertise and hold three public hearings, pass a resolution to opt out, and file it with the Secretary of State by March 1, 2025. 

The public is invited to attend the hearings on Tuesday, Feb. 4 at 10 a.m. and Thursday, Feb. 13 at 2 p.m. and 6 p.m. All hearings will be held at the Eli Whitney Administrative Complex, 2 Laura Avenue, Building G.