Adapting to HB 581: How Georgia Assessors Are Staying Ahead of New Tax Rules

Rapid home value increases following COVID triggered widespread concern. While millage rates largely remained unchanged, higher assessed values led to noticeable tax increases, which drove major legislative reform in Georgia through House Bill 581 and House Bill 92.

TrueRoll’s Sales Director, Andrew Blood recently presented with Ashley O’Donald, Executive Director of the Georgia Association of Assessing Officials (GAAO) and Dante Handel, former Associate Director for the Association County Commissioners of Georgia (ACCG). They discussed the practical impacts of HB 581 and HB 92, how these laws have reshaped assessors’ offices, and what local governments should prepare for heading into 2026.

HB 581 Overview

HB 581 Goals

“581 is probably the biggest legislative change since the early 90s…,” O’Donald said. “[The bills represent] landmark changes to the assessment business,” O’Donald said. 

The primary goal of HB 581 was to protect homeowners from rapid tax increases by introducing a floating exemption, which slows tax increases to the rate of general inflation. 

To help local governments offset potential revenue losses from the new homestead exemption, HB 581 also created an optional new local sales tax (often called a Floating Local Option Sales Tax or FLOST).

The bill also provided tax predictability and aimed to modernize processes.

Issues With HB 581

While these provisions provided big wins for taxpayers and assessors, HB 581 also revealed several challenges. 

Many Taxing Authorities, particularly cities and school districts opted out.  Approximately 85% of school systems chose to opt out, largely due to revenue uncertainty. 

Additionally, a new roll-back rate caused confusion. Before HB 581, property tax notices showed a home’s value and last year’s millage rate to provide an estimate on what a homeowner will pay in taxes. The roll-back rate is supposed to provide a better guess, by incorporating potential changes in value and how much the government needs. This was difficult to communicate on the tax notice. 

HB 92 Overview

HB 92 was introduced primarily as a cleanup and clarification bill to address ambiguities, such as clarifying what properties qualify for exemptions. The bill added incentives to encourage more participation in the program as well. 

However, concerns remain that these incentives may still fall short for school systems. Confusion around the estimated rollback rate also persists among taxpayers and local officials.

Impact on Assessors’ Offices

Revenue Implications

The new legislation significantly elevated the importance of homestead exemptions.

Historically, Georgia’s standard homestead exemption reduced assessed value by just $2,000.

“That was developed in the mid-1930s and it never changed,” O’Donald said. ”It was not a huge huge deal monetarily. …The jurisdiction isn’t losing a significant amount of revenue, but when 581 got introduced, that changed everything overnight.”

Unlike prior exemptions, HB 581 exemptions grow annually based on inflation. County exemptions remained relatively stable until 2025, when they increased by approximately 53%.

School exemptions had already been increasing due to an aging population qualifying for senior exemptions, but spiked an additional 33% in 2025 following the new legislation.

As a result, assessors’ offices felt urgency to ensure exemptions were applied correctly.

“You want to make sure everyone receiving an exemption actually qualifies,” O'Donald said. His local Board of Assessors implemented programs to verify homestead eligibility and proactively notify taxpayers who qualified for age-based exemptions to ensure fairness and equity.

Administrative Workload

Now assessors must now track three values: fair market value, a float base (what an exemption is locked into under 581), and the taxable value.

The changes led to a "tremendous amount of extra administrative duties" for assessors, O’Donald said. That includes manually checking thousands of floating exemption amounts. 

There was also a record number of new homestead applications. Taxpayers can also apply for exemptions during the appeal process. It saved administrative costs and tasks, being able to handle appeals immediately. 

Assessors also experienced a record number of new homestead applications. 

However, assessors saved time and resolved issues more efficiently by allowing taxpayers to apply for exemptions during the appeal process.

Legislative Outlook for 2026

Income Tax Elimination

One major topic under study is the possible elimination of Georgia’s state income tax, currently being reviewed by a Senate Study Committee.

“This would be a very heavy lift,” Handel said. “They need to find a way to make up for an annual loss of $19 million. In order to do that, they would have to eliminate every sales tax exemption and go up four pennies.” 

To offset that loss, Georgia would likely need to eliminate most sales tax exemptions and increase sales tax rates by several percentage points, a move Handel believes is politically unlikely.

School funding is constitutionally protected, meaning much of the burden would fall on county revenues. Additional challenges include replacing revenue lost through income tax credits, around $5 million. 

Handel expects the more likely outcome to be accelerated income tax rate reductions and limited adjustments to sales tax policy, not sweeping changes to ad valorem taxation.

FLOST Proposals

The Floating Local Option Sales Tax (FLOST) remains a topic of interest. FLOST does not generate net new revenue but instead reduces property taxes through millage rollbacks.

It is most effective in jurisdictions with strong retail activity, significant industry, or high volumes of out-of-state traffic. 

Other Legislative Predictions

Because 2026 is a major election year, O'Donald expects significant discussion but relatively few major legislative changes, as the state continues adjusting to HB 581 and HB 92.

One idea under research—though unlikely—is a 100% homestead property tax exemption.

“I don’t see anything that drastic happening,” O'Donald said, “but who knows.”

To prepare for 2026, Handel advises local governments to know their data thoroughly.

As lawmakers evaluate potential changes, the most reliable insights come from chief appraisers and county commissions. Currently, there is no centralized statewide repository for homestead exemption data, making accurate local analysis essential.

Homestead exemptions have become an issue of major importance in Georgia, requiring proactive strategies to track eligibility, ensure compliance, and maintain fairness across the tax base.

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See how Georgia assessors are using TrueRoll to simplify homestead administration and stay ahead of HB 581.

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FAQs About HB 581 and Homestead Exemptions in Georgia

Q: What does HB 581 require for Georgia assessors? A: The law mandates property reappraisals every three years and includes an optional inflation-based cap on assessed value increases.

Q: Why does homestead exemption accuracy matter under HB 581? A: Because property tax growth is capped, each exemption must be valid — or it drains critical revenue from schools and public services.

Q: How does TrueRoll help with HB 581 compliance? A: TrueRoll automates exemption eligibility checks, flags ineligible parcels in real time, and reduces the burden of reappraisal prep.