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County considers opting out of Statewide Adjusted Base Year Homestead Exemption
Posted: January 17, 2025
Gwinnett County announced Friday that it is considering opting out of the new Statewide Adjusted Base Year Homestead Exemption introduced in House Bill 581 and will hold three public hearings for residents to share feedback.
The County has an existing Value Offset Exemption that protects homeowners from tax increases due to increased property market values. Compared to the new Statewide Adjusted Base Year Homestead Exemption, the VOE protects against inflation and keeps County government taxes lower for homeowners.
Since 2001, Gwinnett County government’s existing VOE has automatically been applied when a homestead exemption is granted to a Gwinnett County homeowner. The VOE freezes the assessed property value at the base year valuation.
With Gwinnett County government’s existing VOE, the homeowner's County government taxes are based on the frozen base year valuation, even as property values continue to rise. This is why most property tax increases seen by Gwinnett homeowners in recent years have been due to increases in school and city taxes, which have risen as property market values have increased.
Unlike the existing County Government VOE, the base value of the home is adjusted annually for inflation under the new Statewide Adjusted Base Year Homestead Exemption, making it subject to increases.
The benefit of the existing County Government VOE can be seen in the savings that homeowners receive.
The first example below is a property in the city of Suwanee with a market value of $420,300 in 2021 that grew to $746,500 by 2024. The homeowner’s County tax stayed at $1,254.71 all four years based on the 2013 base assessed value, which was frozen by the VOE when the homeowner was granted a homestead exemption. The VOE saved this homeowner $5,691.11 over four years.
| VOE Information | |
|---|---|
| Base Year | 2013 |
| 2013 Fair Market Value | $298,300 |
| Base Assessed Value | $119,320 |
| Tax Year | Market Value | County Tax Due | School Tax Due | City Tax Due |
|---|---|---|---|---|
| 2021 | $420,300 | $1,254.71 | $3,510.56 | $828.83 |
| 2022 | $575,700 | $1,254.71 | $4,678.49 | $1,135.28 |
| 2023 | $693,300 | $1,254.71 | $5,649.85 | $1,367.19 |
| 2024 | $746,500 | $1,254.71 | $6,059.83 | $1,472.10 |
In another example of a home in unincorporated Auburn, the property’s fair market value increased from $225,500 in 2021 to $407,500 by the 2024 tax year. The homeowner’s County taxes remained stable at $1,066.83 each year based on the frozen base assessed value from 2017. The VOE saved the homeowner $3,116.76 in County taxes over four years.
| VOE Information | |
|---|---|
| Base Year | 2017 |
| 2013 Fair Market Value | $205,800 |
| Base Assessed Value | $82,320 |
| Tax Year | Market Value | County Tax Due | School Tax Due |
|---|---|---|---|
| 2021 | $225,500 | $1,066.83 | $1,846.97 |
| 2022 | $340,400 | $1,066.83 | $2,734.90 |
| 2023 | $379,500 | $1,066.83 | $3,057.87 |
| 2024 | $407,500 | $1,066.83 | $3,273.25 |
Three public hearings will be held at the Gwinnett Justice and Administration Center auditorium for residents to learn more and share comments:
- Tuesday, January 28 at 6:30pm
- Tuesday, February 4 at 2:30pm
- Tuesday, February 18 at 11:00am
Cities and schools will host their own public hearings if they intend to opt out of the new Statewide Adjusted Base Year Homestead Exemption.
The Gwinnett Justice and Administration Center is located at 75 Langley Drive in Lawrenceville.