If you’ve opened a property tax bill lately, you know the dread of watching that final number creep higher. For families on fixed incomes, it's no longer just an annoyance. It's a real threat to keeping the house. This November, voters are heading to the polls to decide if it’s time to hit the brakes.
When the tax bill costs you the house
Property taxes don't care if you're retired. Home values soar, and local tax assessments follow right behind them. That squeezes seniors who paid off their mortgages decades ago. In fact, homeowners over age 50 currently account for 25% of all foreclosures in the United States, according to Kiplinger.
To keep residents from being priced out of their own living rooms, a handful of towns are getting creative. Some cities now let older adults volunteer in exchange for property tax relief. Spend a morning shelving books at the local library, and you earn a credit toward your bill.
The hidden cost of capping the levy
Volunteering is a nice local fix, but several states want a bigger hammer: hard caps on how much your taxes can go up. Slashing the tax levy usually means slashing something else, though. Often, that's local schools.
In New Hampshire, a proposed ballot measure would limit local school tax increases to the rate of inflation plus the value of new construction. Homeowners are desperate for relief. Administrators, however, are worried. School officials in Londonderry say they may need to cut $2 million from their budget if the cap passes. That means cutting advanced courses and staffing, New Hampshire Public Radio reports. It's the classic homeowner dilemma. We want lower bills, but we also want well-funded schools to protect our property values.
What's happening in your state
Voters in ten states will consider ballot measures this year that include a half-dozen property tax changes, according to Realtor.com. Here are a few of the biggest swings:
In Florida, Amendment 3 would increase the homestead property tax exemption to $150,000 next year.
In Illinois, voters in Madison County will weigh an advisory question on whether the state should cap property taxes at 1% of a home's assessed value. The vote was inspired by The Troy Times Tribune's reporting on neighboring Indiana.
In California, Prop 1 isn't about taxes. Instead, it asks to authorize the state to issue massive bonds for housing affordability and down payment assistance.
And in Oklahoma, State Question 847 would lower the maximum annual property tax assessment increase for homesteads to just 1.75%.
The bottom line for you
- Don't wait for an election to lower your tax burden. Make sure you're actually claiming your local homestead exemption. It shields a portion of your home's value from the tax assessor.
- If you're feeling the squeeze from rising assessments, find out exactly how your town calculates that bill. Our property taxes guide walks you through reading your statement and deciding when to appeal.
- Winter weather is around the corner. Time to prep your home before the cold sets in. If you live in the Midwest, knock out your Illinois seasonal checklist this weekend before the freezing temps arrive.