Cobb County Commissioners are considering whether to opt out of House Bill 581 (HB 581), a piece of legislation that has sparked debate over its potential impact on local taxes and government transparency. The bill, originally designed to prevent property tax increases without an official vote, now includes provisions that could lead to automatic tax hikes, higher sales taxes, and changes in how property values are assessed.
The final public hearing on this issue is scheduled for Tuesday, February 25 at 7 PM, giving residents a final opportunity to express their views before a decision is made.
Key Provisions of HB 581
While HB 581 was initially proposed as a safeguard against rising property taxes, the final version of the bill introduces several changes that have raised concerns among some lawmakers and taxpayer advocacy groups.
Among the major provisions:
- Automatic Property Tax Increases – The bill would allow annual property tax increases based on an inflation index, even if property values decline. These increases would not require a vote by elected officials.
- Potential Sales Tax Hike – HB 581 permits an increase of up to 3% in sales taxes, which could bring Cobb County’s overall sales tax rate to 9%—one of the highest in the state.
- Impact on Seniors – While existing property tax exemptions for seniors remain unchanged, an increase in sales tax—particularly if used for school funding—could mean higher overall costs for retirees.
- No Cap on Property Tax Rates – Local governments would retain the authority to raise millage rates, meaning there is no absolute cap on property taxes under HB 581.
- Changes to Rental Property Valuation – The bill removes fair market value caps on rental properties, which could result in increased property taxes for landlords and potentially higher rents for tenants.
- Reduced Transparency in Tax Assessments – Taxpayers would no longer receive estimates of their tax obligations on their property assessment notices, limiting their ability to anticipate and challenge increases.
- Stricter Tax Appeal Rules – Successful property tax appeals would result in only a two-year freeze on assessed value, down from the current three-year freeze.
One of the key provisions of the bill allows local governments, including Cobb County, to opt out by holding three public hearings and voting to reject HB 581 by March 1, 2025.
The Cobb County Board of Education has officially announced that it will opt out of the HB581 property tax formula, a decision that aligns with the best interests of students, teachers, and the community at large, according to local education leaders.Â
Cobb County Official HB581 FAQs
Next Steps for Cobb County
With the final public hearing set for Tuesday, February 25, Cobb County’s Commissioners will soon decide whether to remain under HB 581 or opt out to maintain existing tax policies. County officials have encouraged residents to participate in the process by attending the hearing or contacting their commissioners with feedback.
Supporters of opting out argue that Cobb County already has a floating homestead exemption in place, which ensures homeowners do not face unexpected property tax hikes due to rising home values. They also cite concerns about increased taxes and reduced transparency under HB 581.
On the other hand, some lawmakers have defended the bill’s intent, stating that it was originally designed to create a more predictable property tax system. However, they acknowledge that changes made to the bill have altered its impact, prompting some communities to consider opting out.
As the deadline for action approaches, residents are encouraged to review the bill’s provisions and make their voices heard before Cobb County’s final decision.
How to Participate
Final Public Hearing: Tuesday, February 25 at 7PM
Location: 100 Cherokee Street Marietta, GA 30090
Contact Your County Commissioner: Residents can call or email their commissioners to share their opinions. (See Below for Contact Information)
The outcome of Cobb County’s decision on HB 581 could have long-term implications for property owners, renters, and businesses. With the final hearing just days away, the debate over the bill’s impact continues.
Cobb County Board of Commissioners
100 Cherokee Street
Marietta, GA 30090
(770) 528-3300
Dr. Jackie McMorris, County Manager
(770) 528-2600
Jackie.McMorris@cobbcounty.org
Lisa Cupid, Commission Chairwoman
(770) 528-3305
lisa.cupid@cobbcounty.org
Keli Gambrill, District 1 Commissioner
(770) 528-3313
keli.gambrill@cobbcounty.org
JoAnn K. Birrell, District 3 Commissioner
(770) 528-3317
(770) 528-2606 (Fax)
joann.birrell@cobbcounty.org
Monique Sheffield, District 4 Commissioner
(770) 528-3312
monique.sheffield@cobbcounty.org  Â
