Voters passed these property tax changes in local elections

Citizens in several states voted for initiatives that aim to make it a little (or a lot) cheaper to own a home next year.

Residents in two southern states passed measures tying their property tax burden to the pace of inflation, while voters in another red state failed to pass a more controversial measure that will allow them to get property tax refunds if public nuisance laws aren’t enforced. Veterans will also see greater property tax savings in three more states following votes that easily passed last week. 

“Every movement towards a little bit more affordability is a good move,” said Eddie Blanco, a Realtor with Stratwell and chairman of the board-elect for the Miami Association of Realtors. “It just hedges the concern that people have about inflation, and the impact that has on taxes.”

Other Americans this election cycle opened the door for their state legislatures to debate property taxes. A more extreme move to completely erase property taxes in another state meanwhile was defeated. 

Here’s some of the property tax decisions you may have missed:

Savings opportunities

Florida voters easily passed Amendment 5, which provides an annual inflation adjustment for one of the state’s $25,000 homestead tax exemptions. The change will take effect every Jan. 1, based on any positive percentage change the U.S. Department Department of Labor records in its Consumer Price Index. 

Experts predict a small savings, up to around $20 on average, for homeowners moving forward. Critics warned the move will add up to hundreds of millions of dollars in lost revenues for Florida’s local governments.

Georgia will also tie annual property tax increases at the rate of inflation for existing homeowners, with the passage of Amendment 1. The assessment will reset to current market value if a home is sold. 

The Tax Foundation acknowledged the benefit for homeowners, but said it would be less advantageous for current homeowners to sell and therefore create a “lock-out” effect for buyers. 

Arizona voters meanwhile passed a measure that in some cases could wipe out their relatively low tax burden entirely. Proposition 312 allows property owners to apply for a property tax refund if their locality isn’t enforcing public nuisance laws, and they incur documented expenses to mitigate related damage to their property. 

The quality-of-life laws include illegal camping, loitering, panhandling, public urination or defecation, public consumption of alcohol or possession and/or use of illegal substances. Homeowners who meet the criteria can apply for the property tax annually. 

Conservative sponsors say the measure will force cities to address homelessness, while critics say it will inadvertently worsen the housing crisis by sapping local governments of funds to address the issues. 

Victories for veterans

Tens of thousands of veterans in three states should also see increased tax breaks. 

Virginians overwhelmingly voted to amend their state’s constitution to allow property tax exemptions for veterans and surviving spouses for those who “died in the line of duty” along with those “killed in action.” The line of duty determination is made by the U.S. Department of Defense.  The tax break also wouldn’t apply to surviving spouses who remarry. 

New Mexicans on Tuesday supported two amendments to boost property tax benefits for veterans. Constitutional Amendment 1 will allow veterans with less than 100% disability ratings to apply for property tax exemptions in proportion to their federal disability rating. Constitutional Amendment 2 will increase the veteran property tax exemption from $4,000 to $10,000 and adjust it for inflation annually. 

The second constitutional amendment will expand the property tax exemption to an additional 22,000 homeowners, the Albuquerque Journal reported. 

In Colorado, voters approved Amendment G, which extends property tax exemptions for veterans with disabilities to include those with an unemployability status, helping an estimated 3,400 additional homeowners. The state allows veterans to qualify for 50% of the first $200,000 of their home’s value. 

Future considerations

Wyoming residents voted to create a “residential real property” tax class, and granted the legislature permission to create an “owner-occupied primary residence” subclass to generate relief for homeowners. 

Previously the Cowboy State had grouped residential with commercial and agricultural properties, leaving lawmakers unable to address rising home values. Last week’s vote didn’t grant any immediate relief for homeowners, although the state has among the lowest property taxes nationwide.

Illinois residents voted to let state lawmakers consider a 3% tax on income greater than $1 million, in an effort to divert funds to property tax relief. 

Property tax ban fails to pass

North Dakota residents soundly defeated a measure that would have wiped out their tax bills entirely. Initiated Measure 4 would have axed property taxes, except in case of bonded indebtedness, and force the state to pay for the shortfall. 

A legislative panel estimated the state would have had to pay $3.15 billion in replacement value in the state’s two-year budgets, the Associated Press reported. That would have cut into North Dakota’s forecasted $5 billion in general tax revenues over that period. The bill was opposed by numerous parties including unions, business leagues and the Tax Foundation.