A ROCK AND A HARD PLACE

Fannin County, cities, school officials set hearings for public input on HB 581

Input: Elected leaders seek input to make best decision

The space between a rock and a hard place narrows as local elected officials struggle to decide whether to accept the terms of Georgia House Bill 581 (HB 581) or opt out of the measure.

The rock is represented by voters’ overwhelming support of a Constitutional Amendment on the November ballot that offered a freeze on the assessed value of homestead exemptions, promoted as a tax cut, which state leaders tie to HB 581.

The hard place is represented by the overwhelming opinion of local leaders that HB 581 looks like a bad deal for Fannin County and its cities – a deal that will eventually result in higher taxes.

So hearings are planned to gauge public opinion.

“I never want to go against the will of the people,” Fannin County Commission Chairman Jamie Hensley said, describing the decision as the will of the people versus what is best for Fannin County. He was speaking during a gathering of representatives from the county, McCaysville and Morganton Friday morning at the county courthouse.

McCaysville City Councilwoman Susan Kiker said, “I don’t think the people understood” what they were voting for, an opinion based on her conversations with several citizens.

The discussion continued over the many concerns heard during a public meeting December 17 when local and state elected leaders were present along with many local citizens. Those concerns included:

•Doing nothing and “staying in” HB 581 will eventually result in a millage rate increase or budget cuts or both.

•The state plan calls for a one-cent, Floating Special Purpose Local Option Sales Tax (FLOST) to be passed by local voters. There is concern whether or not this would pass and, if it did, would it endanger Fannin County’s two current Special Purpose Local Option Sales Taxes.

•Even if the FLOST passed, Chief Appraiser Dawn Cochran cautioned, “it’s not as simple as a one cent tax fixing everything.”

•What would be the remedy if, down the road, HB 581’s provisions produced a negative property tax digest for the county’s smaller cities.

•The way HB 581 is written, it’s too “open ended” to predict the results, Cochran explained as she had before.

•The damage would not be seen immediately, but two to three years down the road.

•The software counties must use to make the homestead exemption freeze work has not been written, yet counties need to start using it almost immediately.

•Counties have not been given enough time by the state to research such an important decision. Governments must have everything together to Opt Out by March 1.

McCaysville Mayor Terry Arp called HB 581 nothing more than a “bait and switch.”

Perhaps the most compelling concern echoed by the group was the fact the current property tax system in Fannin County works, evidenced by one of the lowest millage rates in the state.

The group agreed they want to offer members of the public a chance to voice their concerns, and to fully present what they see as the effect of following the provisions of HB 581.

Agreed to was a series of three public hearings, officially advertised as, “Intent to Opt Out of Homestead Exemption,” which is the language HB 581 requires.

Each hearing will include leaders from the county, the school system, and the cities of Blue Ridge, Morganton and McCaysville.

Representatives of all the governments present said the hearings represent their desire to hear from the people as they work to determine the best course of action for local taxpayers. The title, which some would see as a decision having already been made, is the state’s wording required if, in fact, the decision is made to opt out.

“We are seeking input as to the best decision,” Hensley said.

The public hearings are scheduled for:

•Wednesday, January 15, at 6 p.m. in the jury assembly room on the third floor of the Fannin County Courthouse;

•Wednesday, January 22, at 10 a.m. in the jury assembly room on the third floor of the Fannin County Courthouse; and,

•Thursday, January 30, at 5:30 p.m. in the Performing Arts Center on the Fannin County High School campus.

In case any of these hearings has to be canceled due to inclement weather, the hearing is rescheduled for 2 p..m. Friday, January 31, in the jury assembly room on the third floor of the Fannin County Courthouse.