HJR 201 — Elimination of Non‑school Property Tax for Homesteads

Status: Added to State Affairs Committee agenda (11/25/2025)

Filed: March 14, 2025

Type: Joint resolution (constitutional amendment, concurrent)

Primary sponsor: Rep. Steele (later analysis lists Rep. Miller as a co-sponsor)

Purpose / Intent

HJR 201 proposes a constitutional amendment to: (1) exempt the full assessed value of homestead property from all ad valorem (property) taxes except those levied by school districts; and (2) add a constitutional prohibition preventing local governments from reducing law‑enforcement funding below a specified base‑year level.

Key provisions

• Homestead exemption: Amend Article VII, Section 6 to create a new homestead exemption that removes the entire assessed value of homestead properties from non‑school ad valorem taxes (i.e., taxes levied by counties, municipalities, and special districts). School district property taxes would be unchanged.
• Law‑enforcement funding floor: Add Section 7 to Article VIII to prohibit local governments from reducing funding for law enforcement services below the funding level provided in either FY 2025–26 or FY 2026–27, whichever is higher.
• Voter approval and effective date: If approved by at least 60% of voters in the 2026 general election, the amendment would take effect January 1, 2027.
• Passage requirements: Requires a three‑fifths vote of each legislative chamber for final passage as a joint resolution. The amendment is not subject to the Governor’s veto.

Who would be affected

• Homeowners with a qualifying homestead would no longer pay non‑school local property taxes (counties, cities, special districts) on their homestead’s assessed value.
• Local governments (counties, municipalities, special districts) would lose a major revenue base for non‑school services.
• School districts’ property tax revenues are unchanged.

Fiscal impact / implications

• Revenue Estimating Conference (REC) estimates (assuming current millage rates) that, if approved, beginning FY 2027–28 the amendment would cause a negative cash impact of about $14.1 billion and a negative recurring impact of about $18.3 billion on local non‑school property tax revenues statewide.
• Because the constitutional amendment requires voter approval, the REC characterized its immediate effect as zero or negatively indeterminate until voters act.
• Potential local responses (not mandated by the bill): reduce services, raise non‑homestead taxes or fees, shift costs to other taxpayers, or seek state assistance. The law‑enforcement funding floor could limit local options for offsetting service reductions.

Legislative history / procedure

• Filed: 3/14/2025. Multiple committee referrals and actions through 2025 (Select Committee on Property Taxes reported favorably 11/20/2025; vote 23 Y, 10 N). Added to State Affairs Committee agenda 11/25/2025. Subject to placement on the 2026 general election ballot if passed by the Legislature and then approved by voters (60% threshold).