HB 581 establishes a statewide floating homestead exemption that limits the annual increase in property tax assessments on homesteaded properties to the inflation rate of the previous year.

• HB 581 could reduce the district's property tax revenue, leading to potential budget shortfalls.
  • Unpredictable Revenue Loss: The statewide floating homestead exemption limits the annual increase in taxable property value, potentially reducing the tax base for schools. This could create significant funding gaps, particularly in Butts as we do not receive any Local Fair Share.
• Inflation-based caps may not cover rising costs for teacher salaries, technology, and infrastructure.
  • Long-Term Budget Challenges: Limiting property tax growth to inflation doesn’t account for the increasing costs of education, such as salaries, health insurance, infrastructure maintenance, and necessary technology upgrades. Opting out ensures the district can better manage its long-term financial health.
• Reduced local control over finances could weaken the district's ability to address community-specific needs.
  • Preserving Local Authority: Allowing the exemption shifts control over tax revenues to state guidelines, limiting the district's ability to plan for future needs. Opting out enables the district to maintain local control over financial decisions.
  • Tailored Solutions: Local leaders understand the unique needs of their community. Maintaining the current tax system ensures a customized approach to revenue generation that aligns with district priorities.

The decision to opt out will not affect any existing exemptions.

• School districts have only one opportunity to opt out of HB 581.
• By retaining local control over property tax revenues, the district can continue to prioritize the long-term success of its students and community.
• Opting out of HB 581 empowers the school district to retain local control over property tax policies, safeguarding funding, ensuring stable and equitable educational opportunities, and tailoring fiscal decisions to meet the unique needs and priorities of our community.

• Significant Revenue Loss: The district could face reduced property tax revenues, resulting in potential budget shortfalls that jeopardize educational programs and resources.
• Limited Flexibility: State-imposed restrictions on tax growth would hinder the district’s ability to adjust funding for local needs or rising costs.
• Impact on Quality Education: Limited funding could lead to constrained budgets that may cause reductions in staffing, extracurricular activities, and essential programs.

The floating homestead exemption is considered "floating", because the amount of the exemption can change each year.