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Which states proposed replacing property taxes with other revenue sources since 1900?
Executive summary
Since 1900, the record in the supplied reporting shows episodic efforts in many states to curb, limit or even abolish property taxes — most recently concentrated in the 2020s — with proposals commonly seeking to replace property levies by raising consumption (sales) taxes, expanding other state taxes, or transferring education funding to state coffers [1] [2]. Contemporary examples cited across coverage include proposals or ballot measures in states such as Florida, Kansas, Nebraska, North Dakota, Wyoming, Texas, Georgia, Colorado, Indiana, Iowa and Ohio; many of these plans explicitly contemplate replacement revenue from sales taxes, broader state tax shifts, or state general‑fund backfills [1] [3] [4] [5].
1. A long arc, recent spike: why 20th‑century history matters — and why reporting focuses on the 2020s
Historic reforms dating back before 1900 (for example, the Progressive Era reassessments of tax systems) are not covered in the results provided; contemporary sources emphasize that the current wave of repeal/replace proposals is concentrated in the 21st century, especially after large property‑value jumps in recent years that reignited anti‑tax movements (available sources do not mention pre‑1900 state-by-state proposals; reporting highlights modern pushes) [6] [7].
2. Which states have proposed replacing property taxes? — The list in current reporting
Multiple outlets name a similar cluster of states where proposals to curtail or eliminate property taxes — and to substitute other revenue sources — have been advanced recently: Colorado, Connecticut, Florida, Georgia, Indiana, Iowa, Kansas, Maryland, Montana, Nebraska, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, Wyoming and Nebraska are among those mentioned in Tax Foundation and Governing pieces as facing serious proposals or movements to replace property taxes with alternatives such as consumption taxes or state revenue backfills [4] [1] [2] [3]. Coverage of ballot activity in 2024–2025 also flags Arizona, Colorado, Florida, Georgia, New Mexico, North Dakota, Virginia and Wyoming as states with property‑tax measures on ballots [8] [9].
3. The common replacement scenarios reporters describe
When states or campaigns have proposed abolishing or sharply reducing property taxes, the most frequently cited replacement is a broadened or higher sales/consumption tax — sometimes targeted to services — or shifting funding responsibilities to the state general fund or other revenue sources [1] [10]. Tax analysts warn that fully backfilling local property revenue through new state taxes would “dramatically shift” tax burdens and can be difficult to calibrate, undermining local accountability [2] [6].
4. Concrete recent examples and policy mechanics
- Wyoming lawmakers in 2024 considered a bill that would have removed property taxes for many homeowners and proposed offsetting revenue through a sales‑tax increase; that bill ultimately failed [1].
- Nebraska advocates have pushed for replacing property taxes with a consumption tax in past ballot efforts, though some such measures have failed to reach ballots [5] [3].
- In Texas, proposals by Governor Greg Abbott and state lawmakers to eliminate school property taxes have centered on voter referenda and ideas to use state revenues or other tax adjustments to replace the roughly $81 billion that property levies raise annually for schools and local entities [11].
These examples show proposals often pair elimination with specific replacement plans (sales tax increases, expansion of state taxes, or use of state general funds) — but also that many measures stall on feasibility or political hurdles [1] [5] [10].
5. What analysts and advocacy groups warn about — competing perspectives
Tax policy analysts uniformly caution that swapping property taxes for consumption or income taxes changes who pays and can reduce local control; the Tax Foundation and Governing both argue replacement is hard without large shifts in tax burden or state‑local roles [2] [12]. Proponents argue abolition or caps relieve homeowners and spur growth; opponents say local services (schools, police, fire) would be underfunded and low‑income households could be hurt if sales taxes rise because consumption taxes are regressive [1] [9] [10].
6. Limits of the available reporting and what’s not in these sources
The sources supplied focus on recent (mostly 2020s) proposals and ballot measures; they do not provide a comprehensive, year‑by‑year catalog dating back to 1900 for every state (available sources do not mention a complete historical list since 1900). They also emphasize the practical challenges of replacement and offer examples where replacement funding plans were vague or politically contested [2] [6].
7. Bottom line for your question
Based on the provided reporting, numerous states — notably Colorado, Florida, Georgia, Indiana, Iowa, Kansas, Nebraska, New Hampshire, North Dakota, Texas, Wyoming and others — have, since about 2020, proposed eliminating or sharply cutting property taxes and named sales/consumption taxes or state funding shifts as replacement options; however, these proposals vary widely in detail and success, and experts warn that wholesale replacement is difficult and would substantially reshape state‑local finance [1] [4] [2] [5].