5 States Where You Might Not Have to Pay Property Taxes Soon
Residents of These States Can Soon Be Free From Property Taxes
For the past few months, Americans have been facing mounting financial pressure from an increasingly unaffordable housing market. Climbing home prices and other costs are squeezing household budgets, especially for low and middle-income families. One of the most troublesome aspects of homeownership has been rising property tax bills, which are making it even harder for people to buy and maintain homes. However, recent reports indicate that lawmakers in a few states are now planning to eliminate property taxes. Here's everything you need to know.
Georgia
Republicans in Georgia have come up with a long-term plan that would massively reduce property taxes across the state. The proposal calls for an investment of $1 billion initially by the state to provide immediate tax relief, followed by an eventual phase-out of most property taxes by 2032. As part of the plan, the property tax exemption for primary homes would jump from $5,000 to $150,000 in 2031. But to make up for the lost revenue, local governments might start charging homeowners directly for specific services like trash pickup and fire protection, as reported by Fox Business.
North Dakota
North Dakota Governor Kelly Armstrong has also come up with a plan that will gradually reduce and eliminate property taxes over the next 10 years. The proposal would rely on roughly $483 million from the state’s general fund, along with future revenue that will be generated by the oil tax savings account. Officials might begin expanding existing homeowner credit, cutting property taxes by as much as $1,550 a year. Not just this, it has also been mentioned that the relief will grow every two years as more funds are used to offset the reductions.
Texas
Texas Governor Greg Abbott is also trying his best to do away with school property taxes. This comes after years of rolling out policies designed to lower homeowners’ tax bills, including reduced tax rates and expanded homestead exemptions. In his latest plan, he suggested using excess state budget funds to temporarily reduce school property taxes before eliminating them completely. However, state lawmakers have not yet come to an agreement on a permanent strategy to replace the revenue, leaving many questions unanswered as of now.
Indiana
Officials in Indiana are also considering an overhaul of the state’s tax system under House Bill 1288. Under this move, they are planning to first end taxes on tangible personal property after December 31, 2026, before eliminating property taxes by next year. But property taxes help to pay for many important utilities like public transportation, schools, parks, and essential services like police and fire departments, as reported by Investopedia. Therefore, to replace the lost revenue, the proposal plans to broaden Indiana’s sales tax and apply taxes to most services that are currently exempt.
Florida
Moving ahead, the lawmakers in Florida have spent around a year exploring different ways to reduce or eliminate property taxes. There are multiple proposals aiming at lowering the burden on primary homeowners. These widespread ideas range from gradual phaseouts to targeted relief, but these plans have yet to gain full support. Governor Ron DeSantis has urged legislators to unite on one proposal that could be sent directly to the voters for their final approval. But replacing property tax revenue remains a major hurdle for this state as well, as experts suggest that making up the shortfall through sales taxes alone would require nearly doubling the rate.