Draft bill:
A BILL
To eliminate property taxes throughout the United States, to reaffirm constitutional protections against unlawful takings and excessive burdens on private property, and to promote homeowner economic freedom and equitable fiscal policy.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the “Property Tax Repeal and Homeowner Freedom Act of 2025.”
SECTION 2. FINDINGS AND DECLARATIONS.
(a) Constitutional Foundations.
Congress finds and declares that:
Under the Fifth Amendment to the Constitution of the United States, “[n]o person shall be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.”
The imposition of perpetual property taxes constitutes an ongoing government claim over private property ownership, undermining the constitutional guarantee of property rights and amounting to a form of involuntary servitude inconsistent with the principles of private ownership envisioned by the Founders.
The continuous requirement to pay property taxes, under penalty of forfeiture or seizure, effectively converts ownership into conditional tenancy upon the government, violating both the spirit and application of the Fifth and Fourteenth Amendments.
Property taxes unjustly burden citizens by imposing non-consensual obligations based solely on ownership, rather than income or consumption, leading to unequal treatment and infringing on the right to peacefully enjoy one’s private property.
The elimination of property taxes restores the balance between individual liberty and public governance and upholds the due process and equal protection guarantees of the Constitution.
(b) Purpose.
It is the purpose of this Act to:
Abolish property taxation at all levels of government within the United States.
Provide transitional fiscal assistance to States and local governments during the adjustment period.
Establish alternative and equitable funding mechanisms that do not infringe upon constitutional property rights.
SECTION 3. DEFINITIONS.
For purposes of this Act:
“Property tax” means any tax, fee, or levy based directly or indirectly on the assessed value of real property, land, or structural improvements thereto.
“Local government” means any county, municipality, township, school district, or political subdivision authorized to impose property taxes under State law.
“Transitional Fund” means the federal assistance mechanism established under Section 6 of this Act.
SECTION 4. PROHIBITION ON THE LEVY OF PROPERTY TAXES.
(a) General Prohibition.
Effective January 1, 2028, no State, territory, or political subdivision thereof shall levy, collect, or enforce any tax based on the value or ownership of real property.
(b) Repeal of Existing Authority.
States and local governments shall repeal all statutes, ordinances, and regulations authorizing property taxation no later than December 31, 2027.
(c) Preemption.
This Act shall supersede any State or local law inconsistent with its terms.
SECTION 5. CONSTITUTIONAL BASIS FOR FEDERAL AUTHORITY.
(a) This Act is enacted pursuant to Congress’s powers under Article I, Section 8, to secure uniform taxation policies and ensure equal protection under the law.
(b) Congress further acts under its authority granted by the Fourteenth Amendment to prohibit any State action that deprives a person of property without due process or equal protection.
(c) Property taxation has been judged inconsistent with the inherent meaning of property ownership as protected under the Constitution’s guarantees of liberty, due process, and the right to private property free from perpetual government claims.
SECTION 6. PROPERTY TAX TRANSITIONAL FUND.
(a) Establishment.
There is hereby created the “Property Tax Transitional Fund,” administered by the Secretary of the Treasury, to offset fiscal impacts on State and local governments during the transition period (Fiscal Years 2028 through 2032).
(b) Appropriations.
Congress shall appropriate sufficient sums annually for distribution according to revenue replacement formulas established by the Secretary.
(c) Eligibility.
States and local governments shall submit transition plans demonstrating compliance and outlining alternative revenue systems excluding property-based taxation.
SECTION 7. ALTERNATIVE REVENUE GUIDELINES.
(a) State and local governments shall adopt revenue methods that ensure fiscal stability without infringing private property rights, including but not limited to consumption-based taxes, user fees, and development levies.
(b) Such mechanisms shall not include or reintroduce property-based taxation in any form.
SECTION 8. ENFORCEMENT AND OVERSIGHT.
(a) The Comptroller General shall annually review State and local compliance beginning in FY 2028.
(b) Governments violating this Act shall forfeit eligibility for federal grants under Section 6 and may be subject to recoupment of prior disbursements.
SECTION 9. SEVERABILITY.
If any provision of this Act or application thereof is held invalid, the remainder of the Act and its applications shall not be affected.
SECTION 10. EFFECTIVE DATE.
(a) This Act shall take effect immediately upon enactment.
(b) Section 4 shall take effect on January 1, 2028.