While federal tax questions have dominated the headlines this election cycle, state and local taxes can significantly impact individuals and businesses. Some ballot questions, like those involving the legalization of cannabis, have a tax bent because they would also raise revenue for states.
Here’s a look at the outcomes of some of those state tax matters in the recent election.
Arizona
A measure in Arizona—Proposition 312—would allow property owners to apply for a property tax refund if they feel that the local government has not done enough to enforce vagrancy and nuisance laws against homeless residents. Specifically, the proposal would allow for a refund application if the city or locality in which the property is located does not enforce laws regarding illegal camping, loitering, obstructing public thoroughfares, panhandling, public urination or defecation, public consumption of alcoholic beverages, and possession or use of illegal substances. Under the proposal, a property owner could apply for this refund once every tax year.
Outcome: The measure needed over 50% to pass, and with 68% of the votes reported, it has received a 58% “yes” vote.
California
Earlier this year, the California Supreme Court rejected a ballot measure that would make it more difficult to raise taxes in California. The initiative, known as the Taxpayer Protection and Government Accountability Act—or TPA—would have required voter approval to raise taxes or fees or to create new taxes. The California Business Roundtable sponsored the measure, and the proposal received enough signatures to qualify for the November 2024 ballot.
However, Governor Gavin Newsom and the California legislature challenged the measure in court, arguing that the proposal wasn’t merely an amendment but a virtual rewrite of the state’s constitution (that would require a supermajority vote of the legislature or a constitutional convention). The California State Supreme Court agreed, removing the TPA from the November ballot.
Outcome: Nothing changed—this wasn’t on the ballot because of the legal process.
Colorado
Colorado voters considered Proposition JJ, which would direct all sports betting tax revenue above voter-approved limits to water conservation and protection projects. Sports betting revenues are up in many states, raising questions about how best to spend the money.
Outcome: The measure needed over 50% to pass, and with 76% of the vote in, it has received a 76% “yes” vote.
Colorado voters also considered Proposition KK, which would create a 6.5% excise tax on firearms, firearm parts, and ammunition. The tax would be paid by firearm dealers, manufacturers, and ammunition sellers in addition to the existing sales tax. Revenues would be directed to crime and victim services, mental health services for veterans and youth, and school safety programs.
Outcome: The measure needed over 50% to pass, and with 76% of the vote in, it has received a 54% “yes” vote.
Colorado considered Amendment G, which would expand veterans’ eligibility for property tax exemption—currently, the homestead exemption is available only to veterans with a complete and total disability.
Outcome: The amendment needed over 55% of the vote to pass. With at least 76% of the votes reported, it has received a 73% “yes” vote.
Florida
Florida voters considered Amendment 5. Under current law, homes in Florida are assessed at just value (generally, fair market value, which is the amount the property would sell for on the open market) minus the homestead exemption. The exemption can be up to $50,000—the first $25,000 applies to all property taxes, including school district taxes, while an additional exemption applies to the assessed value between $50,000 and $75,000 (and only to non-school taxes).
The amendment would provide for an annual inflation adjustment for the piece of the exemption that applies to non-school taxes (that second amount, which goes up to $25,000). The adjustment would be made every year.
Outcome: The measure needed over 60% to pass, and with 99% of the votes reported, it has received a 66% “yes” vote.
Amendment 3 would have allowed adults aged 21 and over to buy, possess and use marijuana, which would, among other things, raise revenue.
Outcome: With at least 95% of the votes reported, it has received a 56% “no” vote.
Georgia
Georgia voters tackled three tax-related measures. The first two would require amending the state’s constitution (which is why they are referred to as Amendment 1 and Amendment 2). The third is a statewide referendum.
Amendment 1 would authorize the state legislature to impose a statewide local homestead exemption from ad valorem taxes (ad valorem taxes are based on an assessed value, like real estate taxes). The exemption would be tied to inflation, and local governments would have to opt out if they didn’t want to participate.
Outcome: The measure needed over 50% to pass, and with 95% of the votes reported, it has received a 63% “yes” vote.
Amendment 2 would create a Georgia Tax Court to hear tax-related cases. Currently, Georgia has a Tax Tribunal, which isan administrative court that handles individual and corporate tax disputes with the Georgia Department of Revenue. As an administrative court, it’s part of the state’s executive branch. Creating a tax court would move these matters to the state’s judiciary branch.
Outcome: The measure needed over 50% to pass, and with 95% of the votes reported, it has received a 52% “yes” vote.
Referendum A would increase the maximum value of tangible personal property that could be exempt from taxes. The exemption is currently $7,500, and the proposal would boost it to $20,000. Personal property in Georgia is subject to tax if it meets specific criteria—that primarily applies to farm, manufacturing, and office equipment. Georgia last raised the personal property tax exemption in 2002.
Outcome: The measure needed over 50% to pass, and with 95% of the votes reported, it has received a 64% “yes” vote.
Illinois
In Illinois, voters considered a proposal to create a 3% surtax on income over $1 million. The so-called millionaire’s tax would tie the revenue to reducing property taxes. It was a non-binding advisory question, primarily to take the temperature of the public (it was part of Senate Bill 2412, instructing state election officials to add it to the ballot).
Outcome: This is non-binding. With 91% of the votes reported, it has received a 60% “yes” vote.
Louisiana
Louisiana voters will consider Amendment 4, the Louisiana Property Tax Sales Administration Amendment. The amendment does a few things. First, it would remove constitutional provisions related to property tax sales and authorize the legislature to provide for tax sales, including tax lien sales. Second, it would provide that tax payments can only be postponed by emergencies declared by the governor under the Louisiana Homeland Security and Emergency Assistance and Disaster Act, allowing the legislature to give tax collectors the authority to waive penalties for cause.
Outcome: Amendment 4 will be considered on the December 7, 2024, ballot.
Massachusetts
In Massachusetts, Question 4 would have allowed adults aged 21 and over to grow, use, and possess psilocybin, psilocin, dimethyltryptamine, mescaline, and ibogaine. These psychedelic drugs would only be available for purchase at approved locations and for use while a licensed facilitator supervises.
Outcome: With at least 95% of the votes reported, it has received a 57% “no” vote.
Nebraska
In Nebraska, Initiative 437 would allow the use and possession of up to five ounces of cannabis by patients and their caregivers for medical purposes.
Outcome: With at least 95% of the votes reported, it has received a 71% “yes” vote.
In Nebraska, Initiative 438 would create a government board to regulate medical cannabis for patients in Nebraska.
Outcome: With at least 95% of the votes reported, it has received a 67% “yes” vote.
Nevada
Question 5 was straightforward for Nevada voters: whether to exempt diapers from the state sales tax (adult and child diapers are included). Currently, 19 states plus D.C. exempt diapers from taxation. Nevada’s state sales tax rate is 6.85%, but local jurisdictions can add additional taxes.
Outcome: The measure needed over 50% to pass, and with 86% of the votes reported, it has received a 68% “yes” vote.
New Mexico
New Mexico had a measure on the ballot that would expand property tax exemptions for veterans based on the degree of their disability.
Outcome: With at least 94% of the votes reported, it has received an 83% “yes” vote.
North Dakota
North Dakota voters decided on Initiative Measure 4, which would have amended the state’s constitution to prohibit political subdivisions from levying any tax on the assessed value of real or personal property, except for the payment of bonded indebtedness—in other words, it would eliminate property taxes based on assessments. Since property taxes generally support local coffers, the state government would be required to replace property tax revenue to local governments every year by an amount no less than the property taxes those entities levy for the 2024 tax year.
Outcome: The measure needed over 50% to pass, and with 99% of the votes reported, it has received a 64% “no” vote.
Measure 5 would have allowed adults aged 21 and over to produce, sell, possess, and use cannabis.
Outcome: With at least 95% of the votes reported, it has received a 53% “no” vote.
Oregon
Oregon voters decided on Measure 118, the Corporate Tax Revenue Rebate for Residents Initiative. Currently, corporations in Oregon pay either the corporate income tax or the minimum tax, whichever is higher. Measure 118 would have increased the minimum tax on corporations with Oregon sales to 3% (in addition to the minimum tax already in place). The additional revenue from the corporate sales tax would be distributed to eligible residents—defined as a person who resides in the state for 200 days of the year regardless of age—as a tax rebate each year.
Outcome: The measure needed over 50% to pass, and with 77% of the votes reported, it has received a 79% “no” vote.
South Dakota
South Dakota voters considered Initiated Measure 28, which would have eliminated the state sales tax on items sold for human consumption. Currently, the state collects a 4.2% tax on the sale or use of certain goods, including foods and drinks (some municipalities also collect these taxes). State law does not define human consumption, but the commondefinition generally applies to groceries.
Outcome: The measure needed over 50% to pass, and with 99% of the votes reported, it has received a 69% “no” vote.
Measure 29 would have allowed adults aged 21 and over to use, distribute, and possess up to two ounces of marijuana.
Outcome: With at least 95% of the votes reported, it has received a 56% “no” vote.
Virginia
Virginia voters considered a proposal that would change the Virginia constitution to allow exemptions for surviving spouses of veterans who died in the line of duty (exemptions currently only apply to those “killed in action.”)
Outcome: With at least 95% of the votes reported, it has received a 93% “yes” vote.
Washington
Washington voters considered Initiative 2109, the Repeal Capital Gains Tax Initiative. The measure would repeal the state’s 7% tax on capital gains, which went into effect in 2022. Under the recent law, capital gains excise tax is imposedon individuals with long-term capital gains over $250,000.
Outcome: The measure needed over 50% to pass, and with 79% of the votes reported, it has received a 63% “no” vote.
Washington voters will also consider another repeal in the form of Initiative 2117. Initiative 2117 would repeal sections of a state law targeting greenhouse gas emissions, known as the Climate Commitment Act. The 2021 law established a cap and invest program designed to reduce greenhouse gas emissions (businesses with emissions exceeding 25,000 metric tons of carbon dioxide per year must purchase allowances equal to their allowed greenhouse gas emissions)—the cap and invest program would be barred, as would carbon tax credit trading. The measure would also decrease funding for investments in transportation, clean air, renewable energy, conservation, and emissions reduction.
Outcome: The measure needed over 50% to pass, and with 79% of the votes reported, it has received a 62% “no” vote.
Wyoming
Wyoming introduced an amendment to create a new class designation for residential property. Under current law, property is uniformly assessed at full value for all property classes, including commercial and residential. A new designation for owner-occupied properties would allow the legislature to tax those properties at a different rate.
Outcome: The measure needed over 50% to pass, and with 97% of the votes reported, it has received a 59% “yes” vote.
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