Decatur’s Board of Education is preparing an informational flyer regarding its homestead exemption bill on the Nov. 8 ballot, which should become available later this month. Upon passing the law would create an exemption for homeowners over 65 from the school ad valorem tax on their homes.
The flyer’s most problematic question, troubling board members since they approved the resolution last March, is if taxes will increase for those ineligible for the exemption.
“It is a tough question with no set answer,” Superintendent David Dude said recently. “It depends, in part, on what happens with the city’s property values and new construction growth. But the bottom line I can’t predict if it will go up.”
Based on projections estimating who is likely to take the exemptions, City Schools Decatur is anticipating a $1.2 million loss of annual revenue if the bill passes. But as Dude points out hard data won’t be available until after the law takes effect.
The resolution includes a sunset provision that would theoretically allow CSD to revise the exemption after five years, including the possibility of adding income restrictions. Various board members have stated they don’t want the city becoming a haven for wealthier seniors moving in to take advantage of the tax break.
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