Kamala Harris versus Donald Trump is the marquee contest for this November鈥檚 upcoming election鈥攂ut homeowners versus property taxes will also be hotly contested in many states.
Politicians and lawmakers in roughly a half-dozen states are prioritizing property tax reform to address consternation from residents over skyrocketing home values and growing bills. Some have gone as far as pitching the elimination of property taxes altogether, and that could happen in at least one state this year if voters go along with it.
Property taxes are one of the biggest sources of funding for K-12 schools. Nationwide, they make up the overwhelming bulk of local education dollars. Some districts depend on them for the majority of their annual budgets, while others in lower-wealth areas lean on state aid as their primary revenue source.
Efforts to cut property taxes, depending on how the laws are worded, could deepen funding challenges in areas that already have low home values.
Critics of property taxes are a diverse coalition. Some conservative Republicans target them in an effort to curry favor with wealthy homeowners, a highly influential voting bloc. Libertarians and anti-tax groups like the idea of a smaller government footprint in individuals鈥� lives.
Scholars like Andrew Kahrl, meanwhile, argue that the structure of America鈥檚 property tax system is , placing a disproportionate burden on homeowners of color that ought to be lifted in favor of systems that help close wealth disparities.
Eight states have already passed laws that cut property taxes this year, according to an by the Center on Budget and Policy Properties, a left-leaning think tank. Several more have such proposals under consideration or in the works.
Major reforms to property tax laws could affect how much money schools get, where they get their money from, and how their money is allocated. Here鈥檚 a look at what鈥檚 in store for property taxes this fall and beyond.
Some states seek to put limits on future property tax growth
In Georgia, voters this fall will vote on a constitutional amendment that would . If a simple majority approves the constitutional amendment, which already earned favor from more than two-thirds of state lawmakers in each house, individual school districts would have from Jan. 1 to March 1 of next year to .
A similar choice was set to appear before Colorado voters until this week, when state lawmakers for the second time in less than a year.
In return, advocacy groups for lower taxes will withdraw from the November ballot that would have asked Colorado voters whether to cap property tax increases, including for money that goes to school districts, and to lower property tax assessment rates for both residential and commercial properties.
The latter would have had the effect of lowering the amount of property taxes collected to pay for schools and other public services.
Setting the stage for dramatic decreases
Nebraska Gov. Jim Pillen, a Republican, lobbied hard this summer for lawmakers to approve replacing all local property tax revenue with increased sales tax collections and fewer exemptions from imposing sales taxes. But state lawmakers from both parties , including the timing of the rollout and the sales tax increases that would be necessary to help the state cover its new obligation to fund school budgets.
Some school district leaders about being at the mercy of shifting political winds in the state legislature year after year.
For now, lawmakers have agreed on, and Pillen has signed, a that limits property tax growth to the rate of inflation and makes it easier for people to collect tax credits that offset taxes that go to schools.
Pillen has vowed to continue the fight for property tax reform next year. 鈥淚 think it鈥檚 fundamental that we work to make sure the state is funding K-12 education and not property taxpayers,鈥� he told the .
Meanwhile, in Montana earlier this month, Republican and Democratic candidates for governor introduced competing proposals to reform property taxes in the state.
Gov. Greg Gianforte, a Republican, laid out a , including a homestead exemption that would lower tax rates for homeowners and business owners while increasing them for large commercial properties and second homes.
Ryan Busse, Gianforte鈥檚 Democratic challenger, instead proposed , to offer faster relief to citizens.
The exact ramifications of each policy proposal remain to be seen, though proposals to cut property taxes generally contribute to lower revenue for public schools.
Some state proposals would get rid of property taxes altogether
Voters in North Dakota will get the chance to decide the future of property taxes on Nov. 5. An anti-tax group led by Rick Becker, a former Republican state lawmaker, successfully secured space on the ballot for an that asks voters whether they want to maintain the existing property tax scheme or eliminate it altogether.
If the initiative passes with a simple majority, North Dakota would become the first state in the nation鈥檚 history to abandon property taxes. The state will have to either force school districts and local governments to cut spending, or come up with an alternative source for .
It鈥檚 hardly a guarantee that the plan will come to pass, though鈥攖he same proposal in 2012 .
Advocates for a similar proposal in Michigan to qualify for the November ballot.
