See Which States Just Voted to Lower Property Taxes

Voters in North Dakota weighed in on a ballot measure to fully eliminate property taxes in what was called the "most radical" property tax ballot measure in Tuesday's election — but despite the temptations of a tax break, they decided against it.

Eliminating property taxes could have crippled the state government budget; it would have cost an estimated $1.3 billion per year. But North Dakotans rejected that path, voting 63% to 37% to defeat the ballot measure.

In a pre-election report, Realtor.com wrote that the proposal would've made North Dakota "the first state in the nation without any property taxes, raising questions about how key services and infrastructure that benefit homeowners would continue to be funded there."

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The North Dakota property tax rate is 0.97% on average and costs the typical homeowner about $2,700 per year.

Property taxes may be a burden for homeowners, but they provide revenue for schools, public safety and other necessary government programs. States have to pay for those things somehow, and ending property taxes would likely have required the state to offset lost tax dollars by collecting higher sales or income taxes, according to Realtor.com.

Beyond North Dakota, people in a handful of other states voted on measures to lower, but not eliminate, property taxes.

Florida voters passed Amendment 5, which adds an inflation adjustment that will expand a key exemption known as the homestead tax exemption. It reduces how much of a home’s value will be taxed. The change won support from about 66% of voters and will take effect on Jan. 1.

Georgia, likewise, passed an amendment to expand its homestead exemption. The goal was "to limit increases in the assessed value of homesteads," per the ballot question, which would give relief to owners paying higher taxes following recent increases in home values. The amendment had 63% support as of Wednesday afternoon.

Colorado and New Mexico residents voted to expand property tax breaks for disabled veterans.

Meanwhile, votes are still being counted in Arizona on a proposition that would offer property tax refunds to homeowners if public nuisance laws aren't enforced. The proposition was put forward in response to rising homelessness.

Lastly, a majority of Illinois voters have voted in support of a non-binding advisory question about creating a ”millionaire tax.” The plan would increase taxes for people who make seven-digit incomes, and the funds would go to property tax relief. But state officials would need to amend the Illinois constitution to advance it.

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