Tax Repeal Movement Gains Momentum

ATLANTA — There’s a growing push among anti-tax activists for a dramatic change: a complete repeal of property taxes. With property values soaring in many areas, taxes have also climbed, but the idea of eliminating these taxes entirely could result in staggering losses for state budgets—potentially costing billions. It’s uncertain whether lawmakers can actually pull this off without negatively impacting essential services like education and local government operations.

In North Dakota, officials are leveraging oil revenue to shape tax policy. Recently, Georgia House Republicans outlined a plan to gradually remove property taxes for homeowners by 2032. Similarly, Florida’s GOP Governor Ron DeSantis has publicly stated his aspirations to cut non-school property taxes over the next decade. In Texas, Governor Greg Abbott shares similar goals, primarily focusing on school property taxes.

Many Republicans align with the belief that high taxes undermine true ownership of property, particularly when tax authorities can seize homes for unpaid taxes. “No one should risk losing their home over not being able to pay taxes,” remarked Georgia’s Republican House Speaker John Burns.

Election Year Tax Initiatives

These ambitious plans coincide with ballot measures in places like Oklahoma and Ohio aimed at abolishing all property taxes. Past attempts in North Dakota and Nebraska have faltered, and organizers in Michigan face challenges as well.

“We’re definitely in a wave of property tax revolts—this isn’t entirely new,” noted Manish Bhatt from the Tax Foundation, which often critiques new taxes.

The backlash in previous years led to measures like California’s Proposition 13 in 1978, which sought to cap property tax rates and restrict how much local governments could increase real estate valuations for tax purposes.

This movement resonates with individuals like Tim Hodnett, a 65-year-old retiree from Lawrenceville, Georgia, whose property tax bill surged from $2,000 to $3,000 between 2018 and 2024. For Hodnett, who lives on a fixed income of $30,000 annually, this increase feels particularly burdensome, especially since he pays the full tax amount in one go. The prospect of a property tax exemption excites him, given that Gwinnett County offers some relief for seniors.

Concerns Over Alternative Revenue

The larger concern remains whether local governments and schools should reduce their budgets or find alternative revenue streams. “Completely removing property taxes is complex for most states,” observed Adam Langley from the Lincoln Institute for Land Policy.

In Florida, state CFO Blaise Ingoglia is traveling to argue that local governments are overspending, countering claims about the $19 billion generated from homeowners’ property taxes. However, local officials dispute this figure.

Contrastingly, North Dakota is using its substantial Oil Tax Savings Account to phase out property taxes for homeowners. The Republican-led legislature recently enhanced the primary deduction for homeowners, already exempting tens of thousands from property taxes last year, at a projected cost of $400 million for the upcoming tax years.

Meanwhile, in Texas, the approach remains uncertain, as state surpluses play a role in property tax reductions, unlike the more substantial plans being considered in Georgia.

Shifting from Property Taxes to Consumption Taxes

Burns advocates for eliminating $5.2 billion in homeowner property taxes, which would account for a significant percentage of Georgia’s total property tax revenue. The idea is to transfer reliance on sales tax instead. However, his proposal needs approval from both the Republican Senate and the support of Democrats to succeed.

While property taxes largely fund schools, not all communities contribute equally through sales taxes. It’s uncertain how localities will manage revenue losses, given that the sales tax cap is set at 5%, in addition to the state’s rate of 4%. Some may struggle to recover funds lost from property tax elimination.

Georgia currently exempts homes valued at $5,000 from taxes, with plans to elevate that threshold significantly by 2031. Local governments might send bills for specific services, yet lawmakers aren’t labeling these as taxes—creating potential complications for homeowners concerned about unpaid fees.

Burns envisions a $1 billion tax cut in 2026, but whether Governor Brian Kemp will support this remains uncertain.

Georgia has attempted to control property valuations before, amidst resistance from various local governments, but some state senators are still pursuing restrictions to modify property tax assessments.