Will libraries pay the price for property tax reform?

I’ve always lived in Ohio, and of the things we do well in the Buckeye state, I’m most proud of our public libraries. For decades, we’ve done them right. That’s in large part due to a funding formula that provided a dedicated percentage of the state general revenue fund (GRF) to public libraries.

Last year, Ohio’s legislature changed that formula by converting the Public Library Fund into a state budget line item. In its first year it reduced library funding by $25 million. Because the new model is a flat appropriation, rather than a percentage of the GRF, libraries lose out on automatic growth with the economy and potentially become more vulnerable to future line-item cuts.

If that weren’t damaging enough, a grassroots effort to abolish property taxes is now gaining momentum. A citizen-led initiative seeks to amend the Ohio Constitution to eliminate taxes on property. If approved, it would effectively wipe out the primary funding for local governments, schools, emergency services, and, of course, libraries. It wouldn’t mean a few cancelled programs or reduced hours—we’re talking about widespread closures.

In late 2025, Gov. Mike DeWine signed a series of bills to limit rapid tax increases driven by rising property values, but the proposed amendment takes it much further. The governor has warned that eliminating property taxes could require raising the state sales tax to as high as 20 percent to offset the lost revenue.

Supporters of the amendment contend that skyrocketing property taxes are unsustainable. As it turns out, Ohio homeowners are not alone in feeling pressured by a nationwide trend of increased property valuations. Low inventory, combined with increased pandemic-era demand, saw homes appreciate rapidly. According to the Institute on Taxation and Economic Policy, property taxes surged by 30 percent between 2019 and 2024.

Lawmakers across the country are considering or enacting a range of reforms to bring some relief to homeowners. Last year, Wyoming passed legislation that cuts property taxes by 25 percent without backfilling local governments for lost revenue. As recently reported by the Wyoming Tribune Eagle, the Big Horn Library System, WY, saw a 20 percent budget cut. After reducing open hours last summer, its director and three managers gave up their state retirement benefits and added volunteer staffing to secure savings.

In Florida, where Gov. Ron DeSantis has repeatedly called for the elimination of property taxes, the state legislature is now considering several options, including a phase-out of non-school property taxes. Just last month, Georgia legislators brought forward HR 1114, a bill that also followed a phased approach to ending property taxes. It failed to pass with the two-thirds majority needed for a constitutional amendment. Had it been enacted, the state would have sought to replace revenue through increased sales tax and direct billing for services such as garbage pickup, stormwater management, and fire protection. Let me repeat that: homeowners would be billed if they need help from the fire department.

Indiana has already enacted sweeping legislation that, according to Pew Research, gives homeowners tax relief through credits and caps—but it comes at a $1.5 billion cost to local governments. Texas and Nebraska are also considering legislation that does not include full offsets for property tax revenue losses. According to the Tax Foundation, property taxes generate 70 percent of all local tax revenue (and represent a 95 percent share or higher in seven states). What happens to libraries if that goes away?

In this month’s feature “New Money,” Lisa Peet explores the many ways that libraries are diversifying revenue. From corporate sponsorships to philanthropy, libraries are increasingly savvy about alternative funding. Unfortunately, not even the most effective fundraisers would be able to offset the revenue losses that might occur should these extreme property tax reforms get enacted.

Libraries need to be paying attention right now and doing critical public awareness work to ensure property tax relief for homeowners doesn’t critically upend library funding. Do you know the status of property taxes in your state?