Red State Levy Limits Target Local Government Budget Growth to Curb Property Taxes

Homeowners in red states may see their property tax bills reined in through the implementation of property tax levy limits. These limits cap the rate at which total property tax collections can grow annually, which in turn limits the ability of local officials to increase their budgets. In Georgia, House Bill 1116 would restrict annual growth in property tax collections to the rate of inflation or 3.0 percent, whichever is lower. In Tennessee, House Bill 1873 and Senate Bill 2064 proposed limiting growth to the rate of inflation plus two percent, though the legislation died in committee at the end of March. In North Carolina, the House Property Tax Limitation Committee is studying similar levy limits to provide predictability and accountability to taxpayers. In Texas, Governor Greg Abbott's proposed relief package would limit the growth of all local government spending to the rate of population growth plus inflation and require a two-thirds supermajority voter approval for local tax hikes.