Property Tax Elimination Proposals: A State-by-State Guide for 2024

Property tax elimination is gaining serious momentum across the United States as homeowners grapple with soaring bills. Driven by record home appreciation, at least six states—Florida, Illinois, Kansas, Ohio, North Dakota, and Pennsylvania—are actively considering legislation or ballot measures to radically reduce or completely abolish property taxes. While the goal of relieving homeowner burden is clear, these proposals face significant challenges in replacing the essential revenue local governments rely on for schools, infrastructure, and emergency services. This analysis breaks down the current state-level efforts and their potential implications.

What Are the Leading Property Tax Elimination Proposals?

The push for property tax reform is not a one-size-fits-all movement. Each state has developed a unique approach, reflecting its specific economic and political landscape.

• Florida's HJR 201: This is the most sweeping proposal. If approved by 60% of voters in November, it would abolish all non-school property taxes on homesteads (a homeowner's primary residence) starting January 1, 2027. Governor Ron DeSantis supports the measure, but economists warn of massive budget shortfalls, potentially leading to increased sales taxes that disproportionately affect lower-income residents.
• Illinois' SB 1862: Aimed at addressing the nation's second-highest property taxes, this bill would create a homestead exemption. Homeowners who have continuously paid property taxes on their primary residence for at least 30 years would see their property taxes eliminated. Sponsors see this as a starting point for broader reform.
• Kansas' HCR 5014: This innovative proposal takes an indirect route. It would eliminate certain sales tax exemptions to generate approximately $2 billion annually, funneling those funds into a new "Freedom From Taxes Fund." Inspired by sovereign wealth models, the goal is for the fund's investment earnings to eventually cover state education costs, replacing the need for property tax revenue.

How Would States Replace the Lost Revenue?

The most significant hurdle for any property tax elimination plan is replacing the lost revenue. Property taxes are a primary funding source for local governments, and their sudden removal could cripple public services. The proposed solutions vary widely.

• Alternative Tax Sources: Some plans, like in Kansas, suggest reallocating existing tax streams. In Pennsylvania, one proposal includes taxing international remittances (money transfers out of the country) and endowments of wealthy universities.
• State Sovereign Funds: North Dakota and Kansas propose using state investment funds. North Dakota's plan would expand its primary residence tax credit using earnings from the state's $9 billion Legacy Fund, a state savings account funded by oil and gas tax revenues. Over time, the credit would grow to effectively offset property taxes for most homeowners.
• Grassroots Ballot Initiatives: In Ohio, the group Citizens for Property Tax Reform is collecting signatures to place a constitutional amendment on the 2025 ballot. The campaign is driven by homeowners facing sharp assessment increases but has not yet detailed a comprehensive revenue replacement plan.

What Are the Major Challenges to Abolishing Property Taxes?

Despite the popular appeal, these initiatives face two primary obstacles that threaten their viability.

1. Local Government Autonomy: Property taxes are primarily levied by counties, cities, and school districts to fund hyper-local needs. A statewide solution risks infringing on this autonomy. A funding model that works for an urban center may create insurmountable revenue shortfalls for a rural county, making a uniform state policy difficult to implement.
2. Political Viability: Proposals must survive the political process. Plans that shift the tax burden, such as increasing sales taxes, can face opposition. Furthermore, as noted in the original analysis, voters who own second homes or investment properties may show up to the polls to oppose measures that don't offer them similar relief.

Based on our experience assessment, the path to eliminating property taxes is complex and unlikely to happen quickly. While the movement reflects genuine financial pain for homeowners, any successful legislation will need to carefully balance tax relief with sustainable, long-term funding for essential public services. Homeowners should monitor these proposals but prepare for property taxes to remain a key part of homeownership costs for the foreseeable future.