The Decatur City Commission voted last night to include the homestead exemption in the calculation of taxes for the second half billing, to go out shortly, even though they don't yet know if the state will be sending the money.
The Homestead Tax Relief Grant (HTRG) is a state program that provides an $8K exemption to taxpayers residing in owner-occupied properties. The City of Decatur acts as a pass-through agent. The total of the exemptions are about $424K for the City and $660K for the City Schools of Decatur. In the past, the City has billed the state for these amounts, and the state has paid.
Some expect the state legislature to vote for payment early in the next session. Others are not so sure. If the state never sends the money, the Commission will decide whether to absorb the difference or send out an adjustment billing.
The impact of the CSD (which uses about 60%) of the taxes we pay, is larger, at about $660K. In a 9/11 letter to the City Manager, Peggy Merriss, Dr. Edwards has concurred with granting the exemptions now, but requested the bills be sent out with a note saying another bill will be mailed later in the amount of the homestead credit if the state never pays it.