At least eight states are considering proposals to greatly reduce or abolish property taxes, with some looking to do so through ballot measures and others through legislation.
Property taxes aren’t popular. Conservatives describe them as «renting your home from the government,» while progressives criticize them as one of America’s most regressive forms of taxation.
At least eight states will give lawmakers or voters the chance to greatly reduce their state’s property taxes, if not abolish them entirely, this year. It’s a populist sentiment, but some public officials worry about how their local governments will pay for essential services like police, fire and schools without that consistent stream of revenue.
Some states are looking to cut property taxes via legislation. Those bills hinge on the partisan sway of chambers and governors. Others are looking to bypass elected officials entirely, hoping ballot measures will catch the popularity of cutting a disliked tax that amounts to the lion’s share of a monthly mortgage payment in some states.
According to the Tax Foundation, every state has some sort of local property tax, and none have successfully abolished one. Several states have gotten rid of statewide property taxes, however.
How is property taxed?
Unlike income taxes or sales taxes that depend on how much is made or sold, property taxes are measured largely by two factors: how much a property is worth — called an assessment — and how much the local taxing bodies want to tax it by.