For some homeowners, the hot housing market has ignited rebellion against the property tax hikes, as the values of homes escalate. A tax expert said that over half the states are contemplating new property-tax restrictions or cuts.

Other experts have predicted the dissatisfaction about the tax hikes might be the biggest attack on property taxes since 1978, when California voters approved Proposition 13, which placed a cap on property taxes and began a nationwide tax revolt.

Votes from Maine and Washington on citizen-initiated actions are intended to cut property taxes by 20 percent to 50 percent. Other state legislation have taken measures such as the consideration of cutting rates, adding to exemptions and putting a cap on how high the assessments could increase. Property-tax collections have gone up on the average of 5.7 percent a year over the past five years. According to the Census Bureau, in 2003 it reached a record high of $297 billion.

This increase, which was figured to be twice the rate of all other state and local taxes, was determined to be caused by higher home values, rate hikes and new construction.

Some key states to look out for that are taking action against tax hikes:

• In June or November, voters in Maine will decide whether to push back property taxes 20 percent to 50 percent.
• Washington activists are proposing a measure to cut property taxes by 25 percent.
• New Jersey Governor James McGreevey and legislative leaders talked about increasing the income tax so they can cut property taxes.
• Pennsylvania Governor Ed Rendell wanted to legalize slot machines in efforts to lower property taxes.
• Texas Governor Rick Perry wanted a video lottery machine, increased cigarette taxes and to implement fees on adult entertainment.
• Many states might put a limit on how quickly property assessments could rise.

USA Today April 12, 2004