Local Property Taxes

The task for local elected officials in this moment is therefore clear: use available tools to make the wealthy pay their fair share to fund the essential public goods that allow our communities to live safe, healthy, and thriving lives.

State lawmakers are debating whether to subsidize a new Chicago Bears stadium in Arlington Heights, but this bill creates a new statewide property tax cut program for large development projects.

The effects of last year’s federal tax and spending cuts continue to ripple through the states. With gas prices soaring due to the Iran war, some states are attempting to provide a bit of relief in the form of gas tax reductions and suspensions.

This week Hawaiʻi lawmakers reached a compromise to balance the state budget and maintain tax cuts for most residents by, in part, raising rates on the richest Hawaiians. Other states are working to generate revenue from their wealthiest residents, too.

Homes in Black neighborhoods are more likely to be over-assessed for tax purposes while being undervalued by private appraisers.

While some may be excited for a romantic Valentine’s Day this weekend, many state lawmakers are breaking up and decoupling from recent federal tax changes that are poised to leave states with revenue shortfalls – much like a bad date who forgets their wallet and asks you to pick up the tab.

Most states are adopting a very cautious approach so far this year as legislators begin their sessions and governors make their annual addresses, thanks to ongoing economic uncertainty and federal retrenchment.

2025 saw an intensification of state and local tax fights across the country, as well as growing experimentation with local-option taxes, levies, fees, and tourism taxes aimed at keeping budgets afloat while also navigating political constraints imposed by state legislatures.

From Congressional discussions over the so-called "One Big Beautiful Bill Act" to debates on property taxes, ITEP kept busy this year analyzing tax proposals and showing Americans across the country how tax decisions affect them.

Vacancy taxes will not single-handedly solve problems in cities, but they are worth considering to address housing shortages, land use, and building thriving communities.

Important tax measures were on the ballot this week, and the outcomes are clear: many voters support new state and local spending to support critical services in their communities.

Across-the-board property tax cuts create less fair local tax systems in the long run. State legislators and local governments should prioritize the residents who can least afford their property taxes, not the residents and businesses who can.

As federal aid ends and economic uncertainty grows, local governments face tough budget choices. Now is the time for localities to protect vulnerable residents and build stronger, more equitable fiscal foundations.

Tax policy alone cannot solve the housing crisis but lawmakers who are focused on tax policy solutions have better options available than sweeping property tax cuts and caps: property tax circuit breakers, renter credits, vacancy taxes, land value taxes, and changes to existing property tax assessments can move the needle on the affordable housing crisis.

Worries about housing costs and property tax bills are leading people to check the history books for solutions, but there’s a danger that they’ll repeat past mistakes. If anti-tax lawmakers carelessly weaken property taxes as they did in the 1970s, as they did with California’s Proposition 13, they will undercut public finances, making municipalities, school districts, and other special districts worse off.