Skip to main content

Voters in These States Will Decide on Tax Issues

Property taxes are the subject of proposals in seven of the 12 states with tax measures on the ballot.

By Andrea Jimenez and Mandy Rafool  |  October 22, 2024

Voters in 12 states will have a say in state tax policy this election. The top issue? Property taxes. This comes as no surprise since property tax reform was also a top issue in 2024 legislative sessions across the county, and even led to special sessions in Colorado and Nebraska.

Proposals in seven of the 12 states with tax measures address property taxes. The remaining measures propose the repeal of existing taxes, the exemption of certain items from sales taxes and the creation of excise taxes.

Read on for more details about the tax measures in each state.

Arizona

Proposition 312: Proved Property Tax Refund for Non-Enforcement of Public Nuisance Laws

The proposition, which was introduced in the Legislature, 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: Allow Local Bonds for Affordable Housing and Public Infrastructure

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 passes, 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.

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: Provide Permanent Funding for Medi-Cal Health Care Services

This citizen initiative seeks to make the state’s existing health plan tax permanent. The tax, called the Managed Care Organization Provider Tax, is applied to certain health care plans. Funds raised from the tax are used to fund Medi-Cal, the state-federal health care program for low-income people, and other health care programs. If Proposition 35 is not approved, the health plan tax will expire in 2026.

The proposition would extend the health plan tax and thus not affect state tax revenue. However, it 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 of $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

Of the various pieces of legislation introduced to address rising property taxes, only Amendment G, which would expand the eligibility for property tax exemption for veterans, made it onto the ballot. Currently, the homestead exemption is available only to veterans with a complete and total disability.

Amendment G would 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 2025-26 and similar amounts in future budget years.

Proposition JJ: Retain Additional Sports Betting Revenue

Another measure place on the ballot by the Legislature, Proposition JJ seeks to keep and spend all sports betting tax revenue above voter-approved limits on water conservation and protection projects.

Currently, the state 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 2025-26, $2.5 million in budget year 2026-27 and increasing amounts thereafter.

Proposition KK: Create Excise Tax on Firearms and Ammunition

Introduced by lawmakers, this measure would create an excise tax of 6.5% on firearms, firearm parts and ammunition to be paid by firearm dealers, manufacturers and ammunition sellers. The new tax would be in addition to the sales tax that is paid by consumers at the time of the purchase.

Proposition KK would dedicate the revenue collected from the new tax to crime and victim services, mental health services for veterans and youth, and school safety programs. The tax is expected to generate up to $39 million in the first full year.

Florida

Amendment 5: Create 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 exemption would not apply to school district taxes. Currently, homestead properties in Florida are eligible for a $25,000 property tax exemption. An additional $25,000 exemption from school district taxes is also available.

If approved, the amendment would increase homeowners’ property tax exemption by the same amount as inflation in a given year. Amendment 5 would reduce local government property taxes by $22.8 million in fiscal year 2025 and by $111.7 million in fiscal year 2028. The amendment requires the approval of 60% of voters.

Georgia

Amendment 1: Create Statewide Exemption to Local Homestead Tax

The amendment proposes establishing a statewide exemption to the local homestead tax, unless local governments 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 exemption.

Referendum A: Increase Personal Property Tax Exemption

Georgia legislators are proposing to increase the state homestead exemption amount to $20,000 from $7,500. In Georgia, property taxes are collected at the city and local government levels, so state tax collections would not be affected. Only local governments would experience a decrease in revenue.

Illinois

Advisory Question 2: Income Tax Advisory Question

The question asks voters whether the state constitution should be amended to create an additional 3% tax on income greater than $1,000,000 and dedicate the proceeds to property tax relief. If voters approve, legislators will begin discussion and debate on the measure. Voting in favor of the question will not necessarily result in passed legislation.

Louisiana

Amendment 4: Revise Property Tax Sales Administration

The Legislature is proposing the repeal of certain constitutional provisions regarding state sales of properties that are delinquent on tax payments. Currently, when a property owner is delinquent for nonpayment, the state begins a tax sale process. If approved, the amendment would require the state to establish 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: Exempt Child Care Facilities From Property Tax

Voters were asked whether they wanted to exempt child care properties from property tax. The amendment’s fiscal impact was unclear, and it ultimately failed.

Nevada

Question 5: Exempt Sales Tax on Diapers

The Legislature is asking voters whether they want to exempt child and adult diapers from sales tax beginning Jan. 1, 2025. If approved, the exemption would decrease state and local tax collections by about $8 million per fiscal year.

New Mexico

In 2023, the Legislature proposed two property tax-related constitutional amendments: Amendment 1 and Amendment 2.

Constitutional Amendment 1: Expand Property Tax Exemption for Disabled Veterans

Amendment 1 proposes expanding the homestead exemption for veterans with disabilities. Currently, only veterans with a 100% disability rating are eligible for the exemption. If the amendment is approved, veterans with a disability would be eligible for an exemption equal to the federal rating of their disability. The amendment would affect an estimated 30,000 veterans with disabilities. Property owners would primarily absorb the cost of the exemption through an increase of $34 on their property tax bills. Any remaining revenue loss would be taken on by local governments.

Constitutional Amendment 2: Increase Veteran Property Tax Exemption

Amendment 2 proposes raising the property tax exemption amount for honorably discharged veterans to $10,000 from $4,000 and adjusting that amount annually for inflation. Like Amendment 1, the exemption would be paid for through an increase in property taxes for other homeowners.

Estimates are that about 40% of the amendment’s cost would be absorbed by the $34 increase in property taxes for all other homeowners. The brunt of the cost would fall on local governments.

North Dakota

Initiated Measure 4: Prohibit Taxes on Assessed Value of Real Property

Measure 4, placed on the ballot by voters, asks whether 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 measure will require the state to raise $3.15 billion per biennium. The measure does not provide guidance on how the state should go about raising those funds.

Oregon

Measure 118: Corporate Tax Revenue Rebate for Residents

Placed on the ballot by voters, Measure 118 proposes enacting an additional 3% tax on corporations making over $25 million in sales and creating a rebate program for residents.

An estimated 1.8% of corporations in Oregon would be subject to the new tax, which would result in an increase of $12 billion in revenue in tax year 2025. Based on forecasts, the increase in corporate tax could provide a rebate of up to $1,286 for residents in tax year 2026.

South Dakota

Initiated Measure 28: Prohibit Taxes on Anything Sold for Human Consumption

Voters 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 rate. Measure 28 asks residents if they would like to prohibit taxes on anything sold for human consumption. Alcohol and prepared foods would still be subject to sales tax.

If the measure is approved, 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

This citizen initiative would repeal the state capital gains tax. Currently, the state imposes a 7% tax on the sale or exchange of long-term Washington capital assets greater than $250,000. Revenue is dedicated to the Education Legacy Trust Account and the Common Construction Account.

The repeal of the tax would result in a loss of $1.4 billion in the 2023-25 biennium and up to $2 billion by the 2027-29 biennium.

Wyoming

Amendment A: Reduce Tax on Residential Property and Owner-Occupied Primary Residences

Referred by the Legislature, the amendment would separate residential real property into a fourth class. The Legislature would have the authority to create a new assessment rate for property in the new class. The amendment would decrease property tax collections by about $87 million in tax year 2025 and about $90 million in tax year 2026.

Andrea Jimenez is a policy associate in NCSL Fiscal Affairs Program; Mandy Rafool is the program’s director.

Loading
  • Contact NCSL

  • For more information on this topic, use this form to reach NCSL staff.