This year, property tax measures were on the ballot in several states, with voters across the country making decisions about how property taxes should be managed. In six states, voters approved measures aimed at reducing property taxes, but a bold proposal in North Dakota to completely eliminate property taxes was rejected.
The states where voters approved property tax reductions include Arizona, Florida, Georgia, New Mexico, Virginia, and Wyoming. These measures generally focused on providing relief for homeowners, veterans, and survivors of veterans. However, North Dakota’s proposal to abolish property taxes altogether did not pass after local groups, including police, firefighters, and educators, successfully argued that eliminating property taxes would devastate local services. The coalition, called Keep It Local, made it clear that cutting property taxes would result in a loss of vital funding for communities. They suggested that state legislators should look for ways to reform the property tax system, possibly addressing it in January.
North Dakota’s proposed constitutional amendment aimed to prevent both state and local governments from taxing property’s assessed value, which would have cut around $1.3 billion in annual revenue. Supporters argued that eliminating property taxes would curb government spending, while critics warned it would result in severe consequences for local services. North Dakota would have been the first state without property taxes if the measure had passed.
In other states, voters took steps to adjust or reduce property taxes. In Arizona, voters approved a measure that would allow property owners to apply for tax refunds if their local government fails to enforce laws addressing homelessness and related issues like illegal camping and public intoxication. Supporters of the measure believe it will push cities to enforce such laws, but opponents worry it will place cities in difficult legal and financial situations.
Florida voters agreed to a measure that will provide homeowners with a larger property tax break, adjusted annually for inflation, to help ease the burden of rising living costs. Georgia voters approved a similar measure that will limit property tax increases when home values rise. This statewide homestead exemption caps increases in home assessments but allows local governments to opt out.
In New Mexico and Virginia, voters supported measures that provide additional property tax breaks for veterans and their surviving spouses. Wyoming’s voters also approved a new taxation category for properties, separating owner-occupied primary residences from rental properties to offer different tax treatment.
While property taxes continue to be a contentious issue, especially with rising home values, these state-level measures reflect an ongoing effort to balance the need for local funding with the desire for tax relief for homeowners and specific groups like veterans. The outcome of these measures will shape the tax landscape in these states for years to come.
