Property-tax proposals could sharply cut “non-school” tax bills over time

The analysis describes multiple ballot-style options that would apply only to non-school property taxes (about 61% of the average property-tax bill) and would not take effect until January 1, 2027 (impacting FY 2027–28 local budgets). Common elements include a constraint intended to keep public safety spending from dropping below a set base year. One option would replace the current “second homestead exemption” with a full exemption from non-school taxes starting in 2027, with an estimated revenue reduction of $14.1B in 2027–28, rising to $18.3B by FY 2031–32. Another option would phase out non-school taxes over 10 years by adding $100,000 to the (inflation-adjusted) second exemption each year until it reaches 100% of assessed value in 2037, with estimated reductions of $4.4B in 2027–28 growing to $13.3B by FY 2031–32. A separate option links bigger relief to having a qualifying property-insurance policy (an alternate second exemption), estimated at $6.6B in 2027–28 rising to $8.6B by FY 2031–32. For more information click here.