TL;DR
Get cleaning gear delivered free with Prime
- Fast, free delivery on millions of items
- Prime Video, Amazon Music and more included
- Member-only deals all year
A September 28, 2026, post from Conversable Economist discusses David Schleicher’s analysis of recent property tax reforms and proposals in several states. The commentary says cuts can ease tax bills for owner-occupiers but shift costs to businesses, other taxes or state funding—and may raise home values and costs for future buyers.
A September 28, 2026, post from Conversable Economist examines a tension in U.S. property tax politics: homeowners may want rising home values to build wealth while also seeking lower taxes on those homes. Drawing on a paper by David Schleicher, the post says recent state reforms have cut taxes on owner-occupied housing in some places and shifted more of the cost of local services elsewhere.
Schleicher’s paper, The Great American Property Tax Freak Out, was posted online at SSRN on September 1, 2026, according to the commentary. It describes changes made in a number of states over the preceding three years, including substantial tax benefits for owner-occupied homes. The reported alternatives for covering services include higher burdens on commercial property, other local taxes and state funding, which can come from income and sales taxes.
The commentary names Florida, Ohio, North Dakota and Texas as states where officials have considered going further. Proposals there have included ending property taxes on owner-occupied housing or, in some cases, eliminating property taxation altogether. The post does not specify the status or details of each proposal, so they should not be read as enacted statewide policies.
Schleicher argues that rising home values, particularly in suburbs after the COVID period, have contributed to political anger because property taxes rise with assessed wealth. The commentary says some reforms can raise rates on commercial property owners, including owners of rental apartment buildings, whose property values may have declined over the same period. Those are the paper’s account and interpretation, rather than a state-by-state accounting of tax changes.
Who Pays After Home Tax Cuts
Property taxes are a major source of local government revenue in the United States and a central funding source for local schools; many municipalities also use them to pay for police, the post says. If states restrict local property taxes, local governments may have less control over how to fund services and may rely more on state allocations or other taxes. The post notes that voters seeking tax reductions may not connect them to possible pressure on local services.
The proposed shifts also have distributional effects. A lower bill benefits eligible homeowners, while costs can move to commercial property owners, renters, or taxpayers paying other local or state taxes. The commentary says reforms may make local funding less stable, while also reducing the risk of tax foreclosure during recessions. The scale of these effects will depend on each state’s rules and replacement revenue.
There is a housing-market consequence as well. If owning a home becomes less costly because taxes fall, buyers may be willing to pay more for homes, pushing up market prices. That would benefit current owners but could make buying more expensive for people who do not yet own a home, the post argues. The result could be a policy that improves affordability for existing owners’ tax bills while worsening the purchase price faced by future buyers.
As an affiliate, we earn on qualifying purchases.
Why Home Values Affect Tax Bills
Property taxes are generally tied to assessed property values, though assessment practices, tax rates, exemptions and limits vary by state and locality. The commentary frames the tax as a form of wealth taxation: a home can appreciate without its owner receiving cash income at the same time. That can make a higher tax bill difficult for owners with substantial equity but limited current income, including some older residents.
The piece also distinguishes between a home’s value to its owner and the cost of buying a home. An owner may welcome appreciation because it increases household wealth, yet prefer lower prices when planning to move to a larger or better-located property. The same tension applies to taxes: a higher assessed value can increase wealth and, depending on local rules, the tax bill.
Schleicher’s broader concern, as summarized by the post, is that shifting property taxes away from homeowners could change the relationship between local residents and the services they fund collectively. He also links reforms to greater state authority over local governments, stricter zoning controls and more homebuilding in places where construction is legally allowed. Those are projected effects in the analysis, not outcomes established for every jurisdiction.
“In the last three years, a number of states have substantially reformed their property tax systems, providing huge tax benefits to owner-occupied homes.”
— David Schleicher, as quoted in the Conversable Economist post
As an affiliate, we earn on qualifying purchases.
Local Effects Still Vary
The commentary does not provide a state-by-state list of enacted reforms, the size of tax reductions, or estimates of how much revenue has shifted to commercial properties, renters, other taxes or state budgets. It also does not establish whether the proposals discussed in Florida, Ohio, North Dakota and Texas have advanced or been adopted.
It remains unclear how changes would affect the funding or quality of schools, police and other local services in each community. The projected rise in home prices is an economic argument in the paper, not a measured outcome attributed to a specific reform in the material provided. Effects will depend on local housing supply, tax rules, replacement revenue and policy design.
As an affiliate, we earn on qualifying purchases.
Track State Plans and Local Budgets
The next useful developments are legislative decisions in states considering larger exemptions or repeal, and the detailed plans local governments use to replace lost revenue. Budget documents and tax assessments can show whether the burden shifts to commercial parcels, other local taxes or state funding—and whether school and public safety budgets change.
For housing, later market data could help test whether lower property taxes are followed by higher sale prices, as Schleicher predicts. The September commentary does not announce a policy decision or provide a timeline for such data. The proposals and their effects remain dependent on state and local action.
As an affiliate, we earn on qualifying purchases.
Key Questions
Does the report say property taxes have been eliminated in these states?
No. The post says Florida, Ohio, North Dakota and Texas have considered ending taxes on owner-occupied homes or abolishing property taxes. It does not say those proposals became law.
How could lower property taxes raise home prices?
If taxes fall, the ongoing cost of owning a home may fall too. Buyers may then be willing to pay more for the property. This is a forecast in Schleicher’s analysis, not a confirmed result for every tax-cutting area.
Who might pay more if homeowners receive tax cuts?
Depending on state and local policy, the burden could shift to commercial property owners, other local taxes or state revenues. The commentary does not quantify the changes for individual states.
Could property tax cuts affect local services?
They could, because property taxes are a major local revenue source and often help fund schools and police. Whether services change depends on how each government replaces the revenue; the post gives no community-specific budget outcomes.
Source: hn
Columbus Day / Indigenous Peoples' Day Picks
long weekend sales
As an affiliate, we earn on qualifying purchases.
