Millions of homeowners are suddenly much closer to seeing their property tax bills plunge, or in some cases nearly disappear, thanks to aggressive new efforts in Florida and North Dakota. A proposed Florida constitutional amendment known as HJR 201 would exempt homestead property from almost all local property taxes, while a signed package in North Dakota uses state-funded credits to push primary-residence taxes toward zero over time. Both moves arrive as housing costs and insurance premiums climb, turning property tax relief into a defining economic promise for state leaders.
What changed now is a combination of fresh filings in the Florida Legislature and a fully enacted reform in North Dakota that is already being implemented. Together they show how far some states are prepared to go to ease the burden on homeowners, and how much financial risk they are willing to shift onto state budgets and local services to get there.
The Florida Proposal: Aiming for Near-Zero Non-School Taxes
Florida lawmakers have put a sweeping property tax overhaul on the table through House Joint Resolution 201, which appears in the Florida Senate bill records for the 2026 session. HJR 201 would amend the state constitution so that homestead property is exempt from all ad valorem taxes except those levied by school districts, effectively wiping out county, municipal and special-district property taxes on primary residences. The measure is written to take effect on January 1, 2027, if voters approve it, turning what has long been a political talking point into a concrete ballot proposal.
The filed amendment text, available as a Florida bill PDF, spells out more than just the homestead exemption. It also includes language that ties the new tax structure to local law-enforcement funding, placing constraints on how far local governments can cut or reallocate money for police and related services once property tax collections shrink. That linkage reflects a core tension in the proposal: it promises major relief for homeowners while trying to reassure voters that essential public safety budgets will not be gutted in the process.
North Dakota’s Enacted Relief: Credits Paving Path to Elimination
North Dakota has moved beyond proposals and into execution with a property tax package that Governor Doug Armstrong has framed as a path to eliminating most taxes on primary homes. In his 2025 State of the State address, Armstrong described a plan to put the “majority of primary residences” on track to pay zero property taxes within about a decade, relying on large state-backed credits and long-term investment earnings. That framing is central to the political promise behind the reforms: homeowners would still receive local tax bills, but state-funded credits would steadily cover more of the cost.
The governor later signed what his office called a “historic property tax relief and reform package,” documented in an official release from the North Dakota governor’s office. That statement describes a primary residence credit of up to 1,100 dollars in the initial years, with the size of the credit designed to grow as earnings from the state’s oil-fueled Legacy Fund increase. A linked bill overview shows how the credit structure is paired with limits on how fast local property tax budgets can grow, tying direct homeowner relief to a broader attempt to restrain levies across cities, counties and other taxing districts.
What Changed Now: Timeline of Proposals and Actions
The push in Florida has accelerated with a cluster of property tax joint resolutions filed for the 2026 legislative session, including HJR 201 in the Florida House and several companion measures. Accountability reporting that tracks these proposals, cited in coverage of the Florida House amendment efforts, notes that lawmakers have repeatedly advanced versions that seek to eliminate non-school property taxes on homesteads. Earlier iterations were rejected by Governor Ron DeSantis, who has raised concerns about the fiscal impact and design of the House’s approach, setting up a recurring clash between legislators promising sweeping relief and an executive branch warning about budget stability.
In North Dakota, the change is not theoretical. The structure of the credits and levy limits is laid out in the primary legislative overview and was championed by Doug Armstrong as governor. His State of the State remarks previewed the goal of using Legacy Fund earnings to shoulder more of the local tax burden, and the later signing of the package locked that strategy into law. That sequence, from speech to enacted program, is what now allows state agencies to move into the operational phase and start enrolling homeowners in credits that will show up directly on their tax statements.
Why It Matters: Potential Savings and Broader Impacts
The stakes in Florida are enormous because homestead exemptions touch millions of properties and underpin local government finance. A research compilation focused on these proposals, produced by a Florida Policy Institute review of HJR 201 and related measures, draws on modeling from the Florida League of Cities to estimate that eliminating non-school property taxes on homesteads could strip roughly 10 billion to 15 billion dollars per year from local revenue streams. That kind of reduction would deliver dramatic savings to homeowners but also blow a hole in city, county and special-district budgets that currently rely heavily on property taxes to fund services from parks to fire protection.
Critics quoted in Miami Herald coverage of the proposals and in broader Governing.com analysis warn that such a shift could leave local governments scrambling to replace lost dollars or cut services. They point out that while state leaders can promise to “backfill” some of the revenue, there is no permanent funding source built into the Florida amendment itself, which only addresses what local governments may levy rather than how the state will sustain long-term offsets. That tension between immediate homeowner savings and the durability of local services is at the heart of the debate over whether the benefits outweigh the risks.
Funding Mechanisms and Safeguards
North Dakota’s strategy relies heavily on the state’s oil wealth, funneled through the Legacy Fund. The governor’s office release describes an initial 550 million dollar appropriation to launch the primary residence credit, with up to 20 percent of Legacy Fund earnings dedicated to sustaining and expanding the program. That design is meant to give the credits a long-term revenue base that grows alongside the state’s investment portfolio, rather than forcing lawmakers to find new money every budget cycle.
The North Dakota Tax Commissioner’s administrative guidance for the homeowner credit lays out the operational details that turn those funding promises into concrete relief. It explains the maximum credit amount, the requirement that the property be a primary residence, and the application window that homeowners must meet to receive the benefit on their tax bills after 2025. At the same time, the legislative overview of the package notes that local property tax budget increases are capped, which supporters argue will prevent cities and counties from simply raising levies to offset the state-funded credits and erode the intended savings.
Uncertainties and Challenges Ahead
Even if Florida lawmakers advance HJR 201, the amendment still faces a high bar at the ballot box. Under state rules, it would need approval from at least 60 percent of voters in 2026 to take effect, a threshold that has tripped up other high-profile amendments. Reporting from the Associated Press on the property tax debate highlights ongoing disputes over how the state would cover the resulting revenue shortfalls and notes that Governor Ron DeSantis has previously opposed similar House-driven efforts. The Florida Policy Institute’s summary of HJR 201 and companion resolutions echoes concerns that the amendment does not identify a stable replacement for the 10 billion to 15 billion dollars in projected annual local losses.
North Dakota’s package is already law, but its long-term success still depends on factors outside policymakers’ full control. The Tax Commissioner’s program description makes clear that homeowners must navigate application windows and eligibility rules, and that the size of their credit will depend on the parameters set in statute and on available funding. Broader analysis that looks at the Legacy Fund as a revenue source notes that tying property tax relief to investment earnings introduces uncertainty if markets or oil revenues weaken. For both Florida and North Dakota, the political promise of property taxes that plunge or vanish for millions of homeowners will ultimately be tested against these fiscal and administrative realities.
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*This article was researched with the help of AI, with human editors creating the final content.
Elias Broderick specializes in residential and commercial real estate, with a focus on market cycles, property fundamentals, and investment strategy. His writing translates complex housing and development trends into clear insights for both new and experienced investors. At The Daily Overview, Elias explores how real estate fits into long-term wealth planning.
