The tax man giveth, and the tax man taketh away. Unilaterally, the states mentioned below, are all going to 'shift' the taxes from property tax, to sales tax, or some other tax.

Property taxes currently account for 90% of school funding and 70% of local revenue

By Eric Revell

North Dakota
Georgia
Florida
Texas
Indiana

North Dakota
The state capitol building in Bismark, North Dakota.

North Dakota's Republican Gov. Kelly Armstrong has proposed using about $483 million from the state's general fund along with future earnings from the state's oil tax savings account to offset property tax cuts and credits over time with the goal of eventually eliminating them for most homeowners within a decade.

Armstrong's plan would start with expanding an existing tax credit for primary residences, lowering property tax bills up to $1,550 per household annually.

It would increase every two years from there with more of the proceeds from the oil tax savings account offsetting the shift, while capping annual increases in local property taxes at 3%. Further relief would come from expanding a property tax credit for senior citizens who meet income limits as well as people with disabilities.

Georgia

ATLANTA, GEORGIA - MAY 15: In an aerial view, the midtown skyline is seen from Piedmont Park on May 15, 2024 in Atlanta, Georgia. Atlanta is one of the host cities for the 2026 World Cup.

In an aerial view, the midtown skyline is seen from Piedmont Park on May 15, 2024, in Atlanta, Georgia. Atlanta is one of the host cities for the 2026 World Cup.

A proposal by GOP state lawmakers would eliminate most property taxes by 2032, with the effort starting with a $1 billion expenditure by the state government to lower current property taxes. It would also hike property tax exemptions for primary residences from $5,000 to $150,000 in 2031, with most property taxes eliminated the following year.

Local governments would then compensate for the lost revenue by billing homeowners for services such as garbage collection, stormwater control and fire protection. The proposal would require voter approval for other improvements, such as those to government infrastructure or schools.

Florida

Republican Gov. Ron DeSantis has pressed lawmakers to coalesce behind one package that the state can put before Florida voters.

Policymakers in Florida have been debating property tax elimination or relief measures for about a year, with more than half a dozen proposals discussed over the course of last year that would phase out or ease property taxes on primary residences.

Republican Gov. Ron DeSantis has pressed lawmakers to coalesce behind one package that the state can put before Florida voters.

To illustrate the challenges with replacing lost property tax revenue, an analysis by the Tax Foundation found that replacing lost property tax revenue with higher sales taxes would require hiking the sales tax rate from an average of 7.02% to 15.34%. The nonpartisan think tank also noted that could understate the shortfall as taxpayers' behaviors change.

Texas

A view of Austin, Texas' capital city.

Republican Gov. Greg Abbott is seeking to eliminate school property taxes following the enactment of several measures aimed at easing property tax burdens in recent years, such as rate compression and homestead exemptions.

Abbott has proposed using surplus funds from the state's budget to buy down school property taxes for a period of time until they're eliminated. However, lawmakers are still debating a long-term solution for replacing lost education funding.

Indiana
A view of Indianapolis, Indiana.

The skyline of Indianapolis, Indiana.

Indiana's HB 1288 would abolish taxes on tangible property after Dec. 31, 2026, while also eliminating property taxes entirely in 2027.

The proposal would look to recoup lost tax revenue by expanding Indiana's sales and use taxes to cover most services, and the proceeds of that move would be redistributed through a local government sharing fund.