States Debate Cutting Property Taxes, But Face Pushback

Election-year proposals to reduce property taxes hit resistance in some states over concerns about local funding cuts.

Published on Mar. 4, 2026

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More and more states are examining plans to cut property taxes during an election year for governors and legislators, but some states' tax-cutting efforts are facing political resistance over concerns about slashing local government and public school funding. While there is pressure from homeowners to provide property tax relief, completely eliminating property taxes is considered unrealistic, as it is the largest source of revenue for most local governments.

Why it matters

The property tax revolt is being compared to the backlash that led to California's Proposition 13 in 1978, which limited property tax rates and how much local governments could increase property valuations on homes for tax purposes. Rising home values have driven higher property tax bills, leading to political pressure on state legislatures to provide relief. However, eliminating property taxes could have significant impacts on local budgets and services.

The details

Recent proposals to cut property taxes have been debated in states like Iowa, Kansas, Michigan, Missouri, Oklahoma, South Dakota and Wisconsin. In Georgia, a state constitutional amendment that could have cut property taxes for homeowners by 75% or more failed when all but one Democrat voted against it. In Florida, a proposal to phase out property taxes for non-school purposes over 10 years passed the state House but faces an uncertain future in the Senate. Some states are looking at shifting from property taxes to sales taxes to fund local governments and schools, but this approach has its own challenges, as sales taxes tend to be more regressive and not all localities have the same retail sales opportunities to tax.

  • The Georgia bill could be revived, but House Republicans said they would also begin looking at more limited ways to provide property tax relief that wouldn't require a constitutional amendment.
  • In Florida, the property tax phase-out proposal awaits Senate action, but a key state senator has signaled that the Senate is unlikely to agree, instead favoring something less generous and more tailored to the needs of individual counties.

The players

Manish Bhatt

A researcher at the Tax Foundation, a Washington, D.C. group that studies taxes.

Thomas Brosy

A senior research associate at the Urban-Brookings Tax Policy Center.

Jon Burns

The Republican state House Speaker in Georgia.

Carolyn Hugley

The Democratic Minority Leader in the Georgia state House.

Larry Rhoden

The Republican Governor of South Dakota.

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What they’re saying

“The overwhelming trend across the states is relief for residential property owners.”

— Manish Bhatt, Researcher, Tax Foundation (ksgf.com)

“Completely slashing them is really unrealistic, since it really is the largest source of on revenues for most local governments in the United States.”

— Thomas Brosy, Senior Research Associate, Urban-Brookings Tax Policy Center (ksgf.com)

“We've all received emails from constituents worried their skyrocketing property tax will force them from their homes.”

— Shaw Blackmon, Chairman, Georgia House Ways and Means Committee (ksgf.com)

“The math's just not math-ing. It just does not add up. And this is not a responsible thing to do.”

— Carolyn Hugley, Democratic Minority Leader, Georgia House (ksgf.com)

What’s next

In Georgia, the property tax cut proposal could be revived, while House Republicans said they would also begin looking at more limited ways to provide relief. In Florida, the Senate is expected to take up the House-passed proposal to phase out property taxes, but a key senator has signaled the Senate is unlikely to agree to the House plan.

The takeaway

The push to cut property taxes is a politically charged issue, with homeowners demanding relief from rising bills but local governments and schools concerned about the impact of losing a major revenue source. The debate highlights the challenges of balancing the needs of taxpayers and the funding requirements of public services, with no easy solutions emerging so far.