Augusta, GA – As the new year begins, Augusta-Richmond County leaders are addressing a critical issue that could affect local homeowners’ property tax bills. Georgia’s House Bill 581, passed last year, introduces a homestead exemption designed to reduce the amount homeowners pay on their primary residence. However, the exemption’s impact on taxes is not entirely straightforward—it may not result in an overall decrease, but rather influence the rate at which property taxes increase over time.

Commissioner Wayne Guilfoyle raised concerns about potential disparities that could arise from the exemption, particularly with regard to new construction. He questioned how the tax structure would affect homeowners who choose to stay in their current homes versus those who purchase new properties. “What happens to new construction when people don’t sell their house?” he asked. “Because a lot of people will become reliant on not moving because the tax is flat, but everybody else who buys a new house or an existing house—will it go up in price?”

As property values rise, the homestead exemption would primarily serve to cap the amount by which taxes could increase on a homeowner’s property. However, for new homeowners, the rising property values could lead to higher tax bills, potentially creating a divide in tax rates between long-term residents and newcomers within the same neighborhoods.

Guilfoyle also expressed concerns about the financial implications for local businesses. He noted that if the county fails to generate sufficient revenue from property taxes, the burden may shift to businesses, which could face increased taxes to make up the difference.

Counties and school districts across Georgia have the option to opt out of the homestead exemption, and Augusta-Richmond County has yet to decide whether to adopt it. Under state law, the county is required to hold three public hearings to discuss the exemption and its potential impacts before making a decision. While the hearings are mandatory, former Augusta mayor Bob Young has voiced opposition to the need for them. He argued that the voices of local voters, 62% of whom supported the exemption, should not be ignored. “I just don’t understand why anyone would consider taking the voices of 48,000 Richmond Countians and tossing them away,” Young said. “That’s not voter suppression, that’s voter nullification.”

The dates for the public hearings are expected to be announced soon. The Augusta-Richmond County Commission plans to make its final decision regarding the exemption on March 1st.