Arizona
Proposition 312: Property Tax Refund for Non-Enforcement of Public Nuisance Laws
The legislature in Arizona introduced Proposition 312. The proposition would allow property owners to apply for a property tax refund once a year if a city or locality does not enforce laws to mitigate homelessness. Homeowners would be entitled to a refund equal to the expenses they incurred to mitigate homelessness. The maximum refund could not exceed the taxes paid that year. Proposition 312 would reduce only local tax collections.
California
Proposition 5: Allows Local Bonds for Affordable Housing and Public Infrastructure With 55% Voter Approval.
Legislators in California brought forth a proposition to lower the supermajority requirement for special tax and bond measures to fund housing projects and public infrastructure projects. If Proposition 5 were to pass, the new threshold to approve special tax and bond measures would be 55%. The lower threshold would make it easier to raise funding for housing and public infrastructure projects.
If enacted, Proposition 5 would allow local governments to increase local borrowing at their discretion. The borrowed funds would be repaid by raising property taxes.
Proposition 35: Provides Permanent Funding for Medi-Cal Health Care Services.
Proposition 35, a citizen led initiative, seeks to make the existing health plan tax permanent. The tax, called the Managed Care Organization Provider Tax, is applied to certain health care plans. Funds raised from this tax are used to fund Medi-Cal, the state-federal healthcare program for low-income people, and for other healthcare programs. If voters do not approve Proposition 35, the health plan tax will expire in 2026.
Proposition 35 would extend the health plan tax and thus not affect state tax revenue. However, the proposition would raise state costs because a greater portion of the health care plan tax would be allocated to fund other health programs. The Legislative Analyst's Office estimates an annual cost between $1 billion and $2 billion in 2025 and 2026.
Colorado
The Colorado Legislature placed one amendment and two propositions on the ballot this year.
Amendment G: Modify Property Tax Exemption for Veterans with Disabilities
Colorado legislators introduced various pieces of legislation to address rising property taxes but only an amendment to expand the eligibility for property tax exemption for veterans, made it onto the ballot. Currently, the homestead exemption is only available to veterans with a complete and total disability.
Amendment G seeks to expand the property tax exemption to veterans whose disability makes them unemployable. The exemption amounts would vary based on residential assessment rates, home values and local property tax rates. The state would reimburse local governments for the revenue loss. Estimates claim Amendment G would increase state spending by $1.8 million in budget year 2025-2026 and similar amounts in future budget years.
Proposition JJ: Retain Additional Sports Betting Revenue
Another measure placed on the ballot by the legislature, Proposition JJ seeks to keep and spend all sports betting tax revenue above voter-approved limits to fund water conservation and protection projects.
Colorado now refunds sports betting revenue in excess of $29 million to casinos and sports betting operators. Estimates show Colorado is expected to retain an additional $900,000 in budget year 2025-2026, $2.5 million in budget year 2026-2027, and increasing amounts thereafter.
Proposition KK: Firearms and Ammunition Excise Tax
The state introduced a ballot measure to create a new excise tax of 6.5% on firearms, firearm parts, and ammunition to be paid by firearm dealers, manufacturers, and ammunition sellers. This excise tax would be in addition to the sales tax paid by consumers at the time of the purchase.
Proposition KK seeks to dedicate the revenue collected from this tax for crime and victim services, mental health services for veterans and youth, and school safety program. The tax is expected to generate up to $39 million in the first full year.
Florida
Amendment 5: Annual Inflation Adjustment for Homestead Property Tax Exemption Value
The Florida Legislature is seeking to amend the state's constitution to allow for inflation adjusted property tax exemptions. The inflation-adjusted exemption would not apply to school district taxes. Currently, homestead properties in Florida are eligible for a $25,000 property tax exemption. There is an additional $25,000 exemption from school district taxes available.
If the amendment is approved by voters, homeowners will see their property tax exemption increase by the same amount as inflation in that given year. Amendment 5 would reduce local government property taxes by $22.8 million in fiscal year 2025 and would grow up to $111.7 million in fiscal year 2028. This amendment requires the approval of 60% of voters.
Georgia
Amendment 1 Statewide Exemption to Local Homestead Tax
Amendment 1 proposes establishing a statewide exemption to the local homestead tax, unless local governments decide to opt out, and an assessment limit not greater than the rate of inflation in any given year. Amendment 1 would reduce the rate at which local governments collect property taxes because of the assessment limit. The full fiscal impact depends on the number of local governments that do not opt out of the local homestead exemption.
Referendum A: Personal Property Tax Exemption
Georgia legislators brought forth a ballot measure to increase the state homestead exemption amount from $7,500 to $20,000. In Georgia, property taxes are collected at the city and local governments level, so state tax collections would not be affected. As a result, only local governments would experience a decrease in revenue.
Illinois
Advisory Question 2: Income Tax Advisory Question
Advisory Question 2 will ask voters whether the Illinois constitution should be amended to create an additional 3% tax on income greater than $1 million and for those proceeds to be dedicated for property tax relief. If voters approve Advisory Question 2, it will open doors to discussion and debate on the measure for legislators. Voting in favor of the question will not necessarily result in passed legislation.
Louisiana
Amendment 4: Property Tax Sales Administration
The Louisiana State Legislature has proposed repealing certain constitutional provisions regarding state sales of properties that are delinquent on tax payments. As matters stand now, when a property owner is delinquent for nonpayment, the state begins a tax sale process. If approved, Amendment 4 would require the state to implement a tax lien auction process for unpaid debt. It would also limit how much interest and penalty the state can apply to delinquent property tax.
Missouri
Amendment 1: Childcare Facilities Property Tax Exemption
Voters in Missouri were asked whether they wanted to exempt childcare properties from property tax. The fiscal impact of Amendment 1 was unclear and ultimately failed.
Nevada
Question 5: Sales Tax Exemption for Diapers
The Nevada legislature will ask voters whether they want to exempt child and adult diapers from sales tax. If approved, diapers would be exempt from state and local tax beginning Jan. 1, 2025. The exemption would decrease state and local tax collections by approximately $7.9 million per fiscal year.
New Mexico
In 2023, the New Mexico legislature proposed two property tax related constitutional amendments to voters: Constitutional Amendment 1 and Constitutional Amendment 2.
Constitutional Amendment 1: The Disabled Veteran Property Tax Exemption Amendment
Constitutional Amendment 1 proposes expanding the homestead exemption for veterans with disabilities. Currently, only veterans with a 100% disability rating are eligible for a property tax exemption. Under Amendment 1, veterans with a disability would be eligible for an exemption equal to the federal rating of their disability. The New Mexico Legislative Council estimates Constitutional Amendment 1 would impact 30,000 veterans with disabilities. The cost of the exemption would be primarily absorbed by property owners in the state at an additional cost of $34 on property tax bills. Any remaining revenue loss would be taken on by local governments.
Constitutional Amendment 2: Increase Veteran Property Tax Exemption
New Mexico has a property tax exemption of $4,000 for honorably discharged veterans. Constitutional Amendment 2 proposes raising the exemption amount to $10,000 and adjusting that amount annually for inflation. Like Constitutional Amendment 1, the cost of increasing the exemption would result in an increase of property taxes for other homeowners.
The New Mexico Legislative Council estimates about 40% of the cost of the amendment will be absorbed by the $34 increase in property taxes for all other homeowners. The brunt of the cost will fall on local governments.
North Dakota
Initiated Measure 4: Prohibit Taxes on Assessed Value of Real Property Initiative
Voters in North Dakota took it upon themselves to place initiated measure 4, a property tax related measure, on their ballot. Initiated Measure 4 will ask voters whether they want to eliminate the property tax on all real and personal property and require the state to refund localities for the revenue loss. If approved, the state of North Dakota will have to raise $3.15 billion per biennium. Initiated Measure 4 does not provide guidance on how the state should go about raising the $3.15 billion per biennium.
Oregon
Measure 118: Corporate Tax Revenue Rebate for Residents
Oregon voters received enough signatures to place Measure 118 on the ballot. Measure 118 proposes enacting an additional 3% for corporations making over $25 million in sales and creating a rebate program for residents.
The Legislative Revenue Office estimates about 1.8% of corporations in Oregon would be subject to the new tax and result in an increase of $12 billion in corporate tax revenue in tax year 2025. Based on revenue forecasts, the increase in corporate tax could result in a rebate of up to $1,286 for residents in tax year 2026.
South Dakota
Initiated Measure 28: Prohibiting Taxes on Anything Sold For Human Consumption
Residents of South Dakota are proposing to join the 39 other states that do not tax groceries. South Dakota is one of two states that tax groceries at the full allowable sales tax rate. Initiated Measure 28 asks residents if they would like to prohibit taxes on anything sold for human consumption. Alcohol and prepared food would still be subject to sales tax.
If Initiated Measure 28 is approved by voters, the state will see an annual reduction of $123.9 million in sales tax revenue. Municipalities would still be able to tax items sold for human consumption and would not be affected by the measure.
Washington
Initiative 2109: Repeal Capital Gains Tax
Initiative 2109, brought forth by citizen initiative, proposes repealing the state capital gains tax. Washington currently imposes a 7% capital gains tax on the sale or exchange of long-term Washington capital assets greater than $250,000. Revenue collected from the tax is dedicated to the Education Legacy Trust Account and the Common Construction Account.
The repeal of the capital gains tax would result in a loss of $1.4 billion in the 2023-2025 biennium and up to $2 billion by the 2027-2029 biennium.
Wyoming
Amendment A: Property Tax on Residential Property and Owner-Occupied Primary Residences
The state legislature referred Amendment A to the state's ballot. Amendment A would separate residential real property into a fourth class of property. The legislature would have the authority to create a new assessment rate for residential property in the fourth class.