Reducing Property Taxes to Empower Hardworking Americans

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Americans Need Property Tax Relief

Americans are suffering from three years of increasing inflation, high taxes, and a homeownership affordability crisis, preventing millions of Americans from fully realizing the American Dream. Skyrocketing property taxes in many localities are exacerbating this problem.

• Total property taxes on single-family homes rose on average by 6.9% in 2023, on top of an average increase of 3.6% in 2022.
• The average American family needs an additional $11,400 per year to maintain the same standard of living in 2024 that they had in 2019.
• Housing affordability nationwide has declined by almost 30% since December 2021.

Lower Property Taxes Help Alleviate the Cost-of-Living Crisis and Empower More Americans to Purchase a Home

States can take steps now to reduce the property tax burden, make homeownership more achievable, and grow their economies. Property tax cuts benefit all Americans by:

• Addressing the National Cost of Living Crisis. Prices have increased by more than 20% overall since 2021. American families are desperate for any reduction in their cost of living, and a property tax cut can provide substantial relief.
• Increasing Access to Homeownership. Homeownership has long been considered a key part of the American Dream. Reducing property tax rates makes homeownership more achievable for the thousands of American families who are saving up to purchase their own homes.
• Stimulating Economic Growth. Lower taxes allow a state’s residents to spend more on goods and services elsewhere in the economy instead of fueling local government expansion.

Policymakers Should Pursue Property Tax Cuts and Accountability in Local Spending 

• Policymakers should first focus on cutting and controlling local spending to reduce dependency on property taxes. Instead of simply replacing current levels of local spending with state spending, policymakers should reduce spending and decrease reliance on property taxes.
• Policymakers should ensure that homeowners are not penalized when their home valuations increase. Property taxes should reflect a community’s actual needs based on objective factors such as inflation and population growth. This can be accomplished by implementing an automatic cap on annual property tax increases.
• To ensure long-term success, policymakers at both the state and county levels should ensure transparency and accountability among local governments, including considering requiring a two-thirds majority vote to raise a property tax levy and mandating that local governments maintain an easily searchable database of all local spending.