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The race most Americans have top-of-mind today as they hit the polls for the 2024 election is that of the presidency.
However, 10 states also have measures on their ballots that stand to impact homeowners, many of which have to do with property taxes, according to a roundup by Realtor.com.
Some state proposals ask voters to consider new limitations on property tax exemptions, while North Dakota’s measure, the most extreme of the bunch, asks voters to consider eliminating property taxes altogether. Such taxes typically raise funds for services and infrastructure that benefit communities.
“Many of these services, such as libraries, public schools, public safety services, local road maintenance, and parks and recreation facilities are beneficial to property owners,” said Realtor.com Chief Economist Danielle Hale. “In the absence of property tax revenue to support these services, governments would have to levy other taxes, such as sales or income taxes, or fees to provide funding or cut back on these services.”
Informing oneself about ballot measures is an important responsibility of all voters, and those individuals going out to vote today in the states below — as well as the real estate agents who serve these states — should make sure they are up-to-date on the issues before casting their votes.
Arizona
Arizona’s Proposition 312 would give the state’s property owners the option to apply for a property tax refund if the city or town in which they live does not enforce laws or ordinances involving illegal camping, loitering, obstructing public thoroughfares, panhandling, public urination or defecation, public consumption of alcoholic beverage and possession or use of illegal substances.
The measure appeals to those voters who are frustrated with the increasing number of unhoused persons in the mild-climate state. Its supporters argue that the measure will compel cities to enforce existing quality-of-life laws and be more stringent on violations related to unhoused persons, which they say can lower property values.
Opponents of the measure say that it will expend city and county resources in the state without materially improving its homelessness crisis.
View the full ballot measure here.
Colorado
Colorado’s Amendment G would expand the state’s property tax exemption for veterans with disabilities to encompass veterans who have unemployability status.
Colorado’s state legislature gave its full support to the measure when deciding to hand it over to voters — no member voted against it.
The amendment extends the Homestead Property Tax Exemption to include veterans who are living with a service-related disability and can no longer work. The measure does not appear to have drawn much public opposition.
Amendment G will pass if it received 55 percent of voter approval. The full ballot measure can be found here.
Florida
Florida’s Amendment 5 would provide homeowners with an annual inflation adjustment for the value of the state’s homestead property tax exemption.
Florida’s homestead tax exemption is $25,000 for primary residences, which exempts that amount from all property taxes with the exception of school district taxes.
If the amendment were to pass, the homestead tax exemption amount would increase each year at the same rate as inflation, based on the annual change in the Labor Department’s Consumer Price Index, providing that the index’s change is positive.
The measure is certainly appealing to primary homeowners in Florida, who would receive more relief on their property taxes as prices continue to rise. However, the measure’s opponents argue that the burden of property taxes would then unequally be shifted to landlords, who would not be eligible for the exemption, which could ultimately be passed along to renters through higher rent prices.
“Our counties and cities will still need to pay for municipal services and would have to raise their local tax rates to compensate for the revenue loss this tax break would create,” The Palm Beach Post editorial board wrote in opposition to the measure. “So, increasing homestead exemptions is just a shell game.”
The full ballot measure can be found here.
Georgia
Georgia’s Amendment 1 proposes a local homestead property tax exemption in the state, while still giving counties, municipalities or school systems the option to opt out of the exemption.
The measure would allow the state legislature to move forward with HB581, a bill that would cap annual property tax increases at the rate of inflation for existing homeowners. Anytime a house is sold, however, the tax assessment limit would reset to the home’s current market value.
The measure’s supporters argue that it would provide tax relief to homeowners, who have had to deal with sharply rising property values in the last few years.
However, the Tax Foundation opposes the measure, arguing that it would distort the housing market and have a “lock-in” effect that could dissuade homeowners from buying or selling in order to hold onto their tax benefit.
Read the full measure here.
Illinois
Illinois’ income tax advisory question asks voters whether or not to amend the state constitution to add a 3 percent tax on income over $1 million in order to set aside funds for property tax relief.
The measure is non-binding and will not have an impact on state law, but will give the legislature an opportunity to gauge public sentiment on the matter.
More information on the question can be found here.
New Mexico
New Mexico is posing two constitutional amendments to voters.
Constitutional Amendment 1 would proportionally tie a veteran’s disability rating to their property tax exemption.
The current law only allows veterans with a 100 percent disability and their surviving spouses a property tax exemption, but the amendment would allow those veterans with less than 100 disability to apply for an exemption that aligns with their federal disability rating.
Constitutional Amendment 2 would raise the property tax exemption for veterans from $4,000 to $10,000 and adjust that figure annually for inflation. Amendment 2 applies to all honorably discharged veterans, whether or not they are disabled.
The full amendments can be found here.
North Dakota
North Dakota Initiated Measure 4 would make it illegal for the state and local governments to levy taxes on the assessed value of any real or personal property, with the exception of those that pay for bonded indebtedness.
If voters approve the measure, North Dakota will become the first state in the country to do away with property taxes. In 2023, homeowners in the state paid an average effective property tax of 0.99 percent, according to Attom Data Solutions.
“The North Dakota proposal to eliminate property taxes does not specify what the alternative will be,” Hale said in Realtor.com’s report. “The property tax in North Dakota could stand to be reformed, but getting rid of it entirely could create bigger problems than property owners currently face.”
Republican former state legislator Rick Becker spearheaded the measure, stating that property tax is “fairly immoral” and “the ability for the government to take away something that you should rightfully own is improper.”
Several groups across the state have opposed the measure, including the North Dakota Fire Chiefs Association, School Board Association, Sheriffs and Deputies Association, EMS Association, the North Dakota AFL-CIO, the Greater North Dakota Chamber, the North Dakota Farmers Union and the North Dakota League of cities. The Tax Foundation also opposes the measure, arguing that it would force the state to implement new and “more economically harmful taxes” that would make the state less economically competitive.
The full measure can be found here.
Oklahoma
Oklahoma State Question 833 would allow municipalities to create public infrastructure districts when all property owners within the proposed district sign a petition, and give those districts authority to issue bonds for public improvements when approved by voters within that district.
These newly established districts would be governed by a board of trustees who would have the capability to levy a special assessment of up to 10 mills ($10 per $1,000 of assessed value) on any properties benefiting from improvement projects in order to pay off the bonds.
Those who support the measure argue that it gives homeowners the power to create their own tax district to fund infrastructure improvements in their neighborhood.
Opponents of the measure argue that the proposed system would open up opportunities for abuse by developers, who could sell bonds to fund projects like golf courses or swimming pools and then make homeowners pay for those projects through higher property taxes.
“Without guardrails, this State Question is an easy grift that profits a handful at the expense of the rest of us,” State Rep. Andy Fugate said.
Voters can view the full ballot question here.
Virginia
Virginia’s Property Tax Exemption for Veterans and Surviving Spouses Amendment would amend the state constitution’s language to read “died in the line of duty” instead of “killed in action.”
That language tweak would allow surviving spouses of military members who died while fulfilling their duties to receive property tax exemptions, in addition to those spouses of members who died during combat. Those considered “in the line of duty” would be determined by the U.S. Department of Defense.
The exemption applies to primary residences, and would not be applicable to surviving spouses who remarry.
More information on the amendment can be found here.
Wyoming
Wyoming’s Property Tax on Residential Property and Owner-Occupied Primary Residences Amendment adds “residential real property” as a fourth class of property and allows the legislature to create a subclass of residential property for “owner-occupied primary residences” that can be assessed at a different rate from other residential properties.
Wyoming currently has three taxable classes of property: mineral, industrial and all other. The property tax rate in the state last year was 11.5 percent for industrial property and 9.5 percent for commercial, residential and all other property.
The amendment will allow owner-occupied homes to be taxed at a different rate from other commercial and residential properties.
Those in favor of the amendment say it will provide homeowners with tax relief and allow them a better tax rate than larger corporations. Those against the amendment argue that it would make the state’s tax code more complicated and has the potential to put a higher burden on renters and businesses.
View the proposed amendment here.
