Lawmakers consider property tax cap as mayors, business owners clash over impact

February 22, 2026 - 04:15

State lawmakers are advancing a proposal to impose a strict cap on annual property tax increases, sparking a fierce debate between municipal leaders and the business community. The legislation aims to shield homeowners and commercial property owners from steep, budget-busting annual hikes.

However, mayors and county officials from across the state are voicing strong opposition, warning that such a cap would strangle local budgets. They argue it would lead to severe cuts in essential public services, including emergency response, road maintenance, and public schools, by limiting their primary source of revenue.

Conversely, many business owners are urging legislators to pass the measure, stating the current system is unsustainable. Some business owners say rising tax rates are forcing them to make tough decisions about staying open. They report that escalating property taxes, often passed through in commercial leases, are eroding profits, stifling expansion plans, and threatening their very viability. For them, the cap represents critical financial predictability.

The outcome of this legislative battle will have profound implications for the state's economic landscape and the quality of local government services, with both sides pleading their case as a matter of survival.