As Election Day approaches, all eyes are on the races that will determine the political makeup of the Senate and House of Representatives. The outcome could have far-reaching implications for the federal government’s legislative agenda in coming years.
But voters will have more to decide than who is taking office in Congress. Many will also have their say on statewide ballot measures, including ones that could affect how much residents pay in taxes. Here are some of the state initiatives that voters will see in November.
State ballot measures on property taxes
In several states, voters will weigh ballot measures related to property taxes.
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North Carolina residents will decide whether to support a state constitutional amendment that would require lawmakers to limit how much local governments may increase property taxes. If passed, these restrictions would put a cap on the amount of property tax revenue localities can collect. “If revenue exceeds the limit, tax rates would automatically decrease, but an individual homeowner’s bill could still increase,” according to the NC Budget & Tax Center.
Oklahoma voters will also decide on a constitutional amendment involving property taxes. The proposal would lower for 2027 the annual growth limit on the calculated fair cash value of property from 5% to 4%, and the cap for property qualifying for a homestead exemption would drop from 3% to 1.75%. For those 65 and older who have a homestead-exempt property, the annual growth limit would be tiered based on the taxpayer’s income, with a maximum annual limit of 1.75%.
A proposed Florida constitutional amendment includes a few provisions affecting property taxes, including one that would raise the property-tax exemption for non-school taxes to $150,000 in 2027 and $250,000 in 2028; starting in 2029, the exemption would be indexed to inflation.
Tennessee currently has no state property tax, and voters will decide whether to pass a constitutional amendment that would prohibit the state’s legislature from establishing a property tax.
State ballot measures on grocery taxes
(Image credit: Getty Images)
As rising food prices strain family budgets, Arizonans will have their say on a measure that would prohibit local governments from adopting or increasing a tax on grocery sales without voter approval. Any new or increased tax on groceries would be limited to a rate of 2%.
State ballot measures on retirement taxes
Known as Proposition 42, an amendment to California’s constitution would ban any new taxes on retirement account balances, individually owned assets and other personal savings. The state currently does not impose any such tax on the value of these assets, such as IRAs or 401(k)s. But the state does tax distributions from traditional retirement accounts as ordinary income at a rate of up to 13.3%, and this measure would not affect those taxes.
Proposition 42 conflicts with another proposal that Californians will consider in November: a one-time, 5% tax on the net worth of residents who have more than $1 billion in wealth. If both measures pass, the one that gets more votes will prevail, according to clauses in the initiatives.
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.