When you step into the voting booth this November, you're probably going to see a local measure asking to raise your property taxes. It's a tough ask at a tough time. The cost of simply keeping a roof over your head is already climbing from every direction.
The local budget crunch
Local governments and school districts are hitting a financial wall. Asphalt costs more. Employee healthcare costs more. When equipment prices nearly double, municipalities have to find the cash somewhere. Usually, they look to homeowners.
Noblesville Schools in Indiana, for example, warned that if its referendum fails, it will cut 20% of its staff and close an elementary school, according to the Hoosier Enquirer. It's a stark ultimatum.
The other hand in your pocket
These ballot requests feel heavy right now because your housing budget is already fighting a war on another front. Average home insurance premiums now exceed the average property-tax bill in two-thirds of U.S. counties.
The Insurance Journal reports the federal government is shifting more disaster recovery costs back to local municipalities. That creates a brutal squeeze. Your town needs more tax money to handle local emergencies and maintain infrastructure. Meanwhile, your private insurance bill is going through the roof for the exact same reasons.
What's happening in your state
Whether you're voting on schools or streets, the theme is remarkably consistent across the country.
In Indiana, voters are deciding the fate of dozens of school funding requests. Districts argue they can't absorb recent legislative cuts without new revenue.
In Missouri, Parkville voters are weighing propositions that could raise the city's property-tax levy by nearly 47%, Hoodline reports. The money would fix up aging municipal facilities. One transportation building is currently dealing with mold and lacks running water.
In Texas, the focus is on relief. The Texas Tribune notes state law sets the homestead exemption for school districts at $140,000. That means a huge chunk of your home's value is completely shielded from these exact types of school tax hikes.
The bottom line for you
- Don't leave tax protections on the table. Many states offer breaks for primary residences, seniors, or veterans. Eligible Texas homeowners can even claim homestead exemptions retroactively for up to two years. If you haven't filed yours yet, our homestead exemption guide walks you through the paperwork.
- Treat your insurance and taxes as one combined housing expense. If a new local levy passes in your town, you might need to offset that hit by shopping for a better insurance rate. Our Property Taxes & Home Finances guide can help you balance the math.