Four states with Republican leadership—Florida, North Carolina, Oklahoma, and Wyoming—are putting measures to voters this November seeking to cut or roll back property taxes. This comes in response to years of rising costs, which many homeowners struggle to manage. These proposals have reached the ballot, while similar initiatives in Missouri and Nebraska have stalled or ended without success.
If voters in these states back the tax relief efforts, it could strengthen the push by Republican lawmakers against property taxes nationwide. Conversely, if concerns about local funding prevail and voters reject the measures, it could set back those efforts.
The Red States’ Stand Against Property Taxes
Property taxes have soared as housing costs increased following the pandemic. Low mortgage rates and remote work led to a buying surge, pushing home values up. As a result, property tax revenues rose sharply.
The Institute on Taxation and Economic Policy (ITEP) notes a 30% rise in average annual property taxes for single-family homes since 2019. By 2024, homeowners were paying a median of $3,119 annually, according to LendingTree estimates. Figures from ATTOM revealed average taxes of $4,427 for homes valued at $494,231, a 3% increase from the prior year. In some areas, the rise has been notably higher.
The nationwide effective tax rate for single-family homes was 0.9% last year, marking an increase from 0.86% in 2024 and near the 2020 peak of 1.1%.
Homeowners, notably seniors with fixed incomes, report difficulties coping with higher taxes. Various lawmakers, especially from Republican-led states, are addressing these concerns while facing worries about potential revenue losses to local governments.
November Ballot Proposals
Each state has its approach to managing property taxes. Florida and Wyoming present the most substantial direct tax reductions. Oklahoma proposes tightening assessment increment limits. North Carolina seeks to mandate legislative action to set property tax increase caps.
Florida
In Florida, a constitutional amendment, Amendment 3, aims to broaden the homestead exemption significantly. It proposes raising the nonschool property tax exemption to $150,000 in 2027 and $250,000 in 2028. Additionally, it suggests reducing the cap on assessment increases for non-homestead properties from 10% to 5%.
A legal dispute has arisen over the amendment’s wording, with a court ruling it as misleading. Critics, including experts and local officials, warn it might slay local funding adversely, impacting services like law enforcement.
The introduction of this constitutional amendment requires at least 60% voter approval.
North Carolina
North Carolina’s ballot proposal seeks to amend the state constitution to compel the General Assembly to establish property tax increase limits. The amendment doesn’t specify a cap or formula, leaving decisions to lawmakers. Advocates argue it shields homeowners from steep hikes. However, opponents caution of potential cuts to local funding affecting public services.
Oklahoma
Oklahoma’s measure suggests reducing the cap on growth in taxable property values yearly. For homesteads, the cap lowers from 3% to 1.75%. Most other properties’ assessments would cap at 4%, down from 5%. Proponents believe it offers consistent relief amid climbing home values. Critics warn it may limit resources for schools and local services.
Wyoming
Wyoming is introducing its first citizen-driven ballot initiative in three decades. It proposes a 50% tax exemption for a homeowner’s primary residence, taxing only half the assessed value. Proponents view it as aid for homeowners and retirees amid rising bills. Opponents highlight concerns over diminished revenue for local governments and schools.
If passed, the reform would add to the current 25% property tax exemption on the first $1 million in a home’s market value, previously enacted by the Republican-led state government.