In the recent November 2024 elections, California voters considered several propositions related to real estate ownership, property taxes, and rent control. While these measures proposed changes that could impact housing affordability and rental markets, they ultimately did not pass. Here’s a quick summary of the propositions and their outcomes, followed by a look at the implications for California homeowners and an overview of nationwide property tax changes.

Proposition 33 sought to repeal the Costa–Hawkins Rental Housing Act, which currently limits rent control on certain residential properties. If passed, this proposition would have allowed local governments to implement rent control on single-family homes and newer apartment buildings. However, voters rejected Proposition 33, with approximately 62% opposing it.

Proposition 5 aimed to lower the required voter approval for local bonds funding affordable housing and infrastructure from a two-thirds majority to a 55% majority. The goal was to make it easier to pass local bonds that could increase housing supply. Despite the potential benefits, the measure was not approved, and the two-thirds threshold remains in place.

In South Lake Tahoe, Measure N proposed a tax on vacant properties left unoccupied for more than 182 days annually. This tax, set at $3,000 for the first year and $6,000 for subsequent years, aimed to fund affordable housing and local infrastructure. Voters in South Lake Tahoe strongly opposed Measure N, with nearly 74% voting against it.

The rejection of these measures reflects a cautious stance among California voters on modifying property tax laws and expanding rent control. Homeowners may see this as a positive outcome, as it maintains the stability of current property tax and rent control laws under Proposition 13 and Costa–Hawkins. However, the ongoing housing affordability challenges in the state suggest that similar measures may continue to surface in future elections. California’s existing regulations on property taxes and rent control remain unchanged, allowing local governments and advocacy groups to explore new proposals.

• Florida: Florida passed an amendment allowing an annual inflation adjustment to one of its $25,000 homestead tax exemptions. This measure provides small but consistent savings each year based on the Consumer Price Index.

• Georgia: Georgia voters approved a measure that ties property tax increases for existing homeowners to the inflation rate, preventing sudden increases. This “lock-out” effect helps current homeowners, though the assessment resets to market value when the property is sold.

Arizona voters approved Proposition 312, which lets property owners apply for a property tax refund if local public nuisance laws are not enforced, allowing homeowners to recoup costs associated with mitigating issues like illegal camping or loitering.

Veterans in Virginia, New Mexico, and Colorado saw expanded property tax exemptions:

• Virginia: New exemptions cover veterans and their families for those who died in the line of duty.

• New Mexico: Veterans with partial disabilities can now receive tax exemptions proportionate to their disability rating, while the general exemption for all veterans increased from $4,000 to $10,000, adjusted annually for inflation.

• Colorado: Colorado now includes veterans with an unemployability status in their tax exemption program, benefiting more than 3,000 additional homeowners.

Wyoming and Illinois passed measures that could lead to future tax relief initiatives:

• Wyoming created a new residential tax classification, allowing lawmakers to consider tax relief specifically for owner-occupied residences.

• Illinois approved a proposal allowing a 3% income tax on earnings over $1 million, with proceeds aimed at property tax relief.

North Dakota voters rejected a measure that would have eliminated property taxes, with the state assuming responsibility for local revenue. This outcome demonstrates the challenges of replacing property tax revenue and provides a cautionary tale for states considering similar measures.

California voters took a conservative approach to property tax changes and rent control expansion, reflecting a preference for stability in the current system. However, as housing affordability remains a significant issue, similar proposals may appear on future ballots. Nationwide, states implemented new property tax measures that aim to provide inflation-adjusted relief, benefits for veterans, and quality-of-life improvements, offering California a range of models to consider as it navigates its own property tax and housing challenges.

• California voters upheld existing property tax laws and rental regulations, opting for continuity over change.

• Other states are exploring property tax relief measures that might provide ideas for future California legislation.

• North Dakota’s failed property tax elimination highlights the risks of drastic tax system changes.