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What were the outcomes of major attempts to eliminate property taxes in US states?
Executive summary
Efforts to eliminate property taxes in U.S. states have been mostly aspirational or partial so far: several ballot drives and legislative proposals have sought either total abolition or large rollbacks, but examples of complete, statewide elimination succeeding are not documented in the provided reporting [1] [2]. Policymakers and analysts repeatedly warn that property taxes supply large, stable shares of local revenue—nationally about 30% of state‑local tax revenue—so replacing them would require major new revenue sources or cuts [3] [4].
1. High‑profile campaigns: ballot initiatives that energized voters but rarely finished the job
Grassroots and sponsored ballot efforts in states like North Dakota and Michigan drew attention in 2024–2025: North Dakota’s “End Unfair Property Tax” and Michigan’s AxMiTax were organized as measures to abolish property taxes and in some cases qualified for ballots or gathered signatures, but reporting shows these ranged from active campaigns to efforts that fell short of enactment or moved to votes only as partial plans rather than immediate repeal [1] [5]. Stateline notes multiple measures and compromises: in some states proposed measures were withdrawn after legislatures negotiated alternatives [6].
2. Legislative proposals: bold headlines, cautious follow‑through
State lawmakers have introduced bills and resolutions—Florida’s recent flurry (Senate Bill 852, HJR 201 and other proposals) and Illinois’ Senate Bill 1862 among them—that range from studying elimination to carving out decades‑long homestead exemptions rather than immediate abolition [7] [8]. In Florida, talk of a constitutional amendment requires a 60% voter threshold and legislative approval to appear on the ballot, so proponents face substantial procedural hurdles [8].
3. Practical constraints: property tax revenue is large and concentrated
Analysts underline why full abolition is hard: property taxes are often the single largest source of state and local revenue—about 30% nationwide—and in some states they exceed other major taxes by large margins (e.g., Nebraska’s property tax generated 34% of state‑local tax revenue in one illustration) [3] [4]. Tax Notes and CBPP reporting stress that replacing that revenue would require substantial new revenues (higher sales taxes, state budget shifts) or big service cuts, making outright elimination fiscally disruptive [3] [9].
4. Partial successes and common alternatives: caps, exemptions, and TPP repeal
Where complete abolition hasn’t been achieved, legislatures have pursued limits and targeted exemptions. Examples include states increasing homestead exemptions, imposing appraisal caps, or repealing taxes on tangible personal property (TPP): Wisconsin repealed its TPP tax after repeated efforts; Texas debated but ultimately excluded TPP elimination from its final package, instead widening homestead exemptions and caps [10]. Stateline and other coverage show many ballot measures instead sought caps or relief for seniors and veterans rather than full repeal [6] [11].
5. The political calculus: popularity versus feasibility
A recurring theme is political appetite: property taxes are unpopular and generate strong political messaging [12] [1]. Governors and candidates—cited examples include Florida’s Ron DeSantis—have publicly endorsed ambitious elimination goals, which helps mobilize supporters, but analysts and some fellow officials warn that the political appeal often collides with fiscal reality and constitutional hurdles [7] [8].
6. Fiscal tradeoffs and equity concerns raised by analysts
Policy analysts warn that broad cuts or elimination often shift the burden onto regressive revenue sources (sales taxes) or force cuts in local services such as schools, police, and infrastructure—services largely funded by property taxes in most localities [9] [3]. The Center on Budget and Policy Priorities specifically argues that outright elimination could threaten local fiscal stability and disproportionately harm lower‑income households unless carefully-designed offsets are enacted [9].
7. What counts as an “outcome” so far: wins, withdrawals, and ongoing debates
Measured outcomes in the sources include: ballot measures placed on ballots, measures withdrawn after legislative compromise (Colorado), enacted narrow reforms like TPP repeal in some states, and major proposals that remain under study or face constitutional vote thresholds [6] [10] [8]. No source in the provided set documents a recent, successful statewide abolition of all property taxes that replaced the lost revenue without major caveats (available sources do not mention a completed, statewide abolition that fully replaced revenues).
8. Bottom line for observers and voters
Promises to “eliminate property taxes” have energized voters and produced concrete actions—ballot questions, bills, and partial statutory changes—but the reporting shows the more common outcomes are compromises, targeted exemptions, or stalled proposals because of the large fiscal hole property taxes would leave and constitutional or political barriers to broad repeal [1] [3] [8]. Voters should expect future debates to hinge on tradeoffs between tax relief, revenue replacement, and protections for vulnerable local services [9].