The outcome of the 2026 election will have a significant impact on the public policies affecting commercial real estate investment and development. While voters may focus primarily on the candidates for federal and state offices at the top of the ticket, they should not overlook several down-ticket statewide ballot initiatives. Ballotpedia estimates that there will be a total of 164 statewide ballot measures voted upon in 40 states in 2026.
The two main processes for these measures appearing on the ballot are through state legislative action or a citizen’s petition receiving the necessary number of registered voter signatures that have been checked and certified by state’s secretary of state. For ballot measures that are legislatively referred amendments to the state’s constitution, Ballotpedia reports that 11 states require approval by a supermajority of the votes cast on election day.
It should be mentioned that the general debate on citizen’s ballot measures, irrespective of the policy being voted upon, may differ. Some pundits contend that the outcome of these ballot measures represent the will of the voters and is truest form of the democratic process, while others argue that it circumvents those elected to represent them within their respective state legislature.
The National Conference of State Legislatures reports that 15 statewide measures in nine states impacting property taxes will appear on the November ballot. Florida’s Amendment 3 is a noteworthy example of a property tax measure placed on the ballot by the state legislature. Voter approval of the “Save our Homes from Excessive Property Taxes” initiative will raise the state’s homestead exemption on a property’s assessed value from $25,000 to $150,000 in 2027, and $250,000 in 2028 with further increases in later years based on inflation. The amendment would also establish a five-year residency requirement for anyone moving to Florida after January 1, 2027, to qualify for the exemption.
Florida legislators also included language in the amendment to adjust property taxes on non-homestead properties, which includes commercial real estate. Approval of Amendment 3 would cap annual commercial property assessments at 5%, a reduction from 10% currently. This constitutional amendment requires a supermajority of the popular vote.
Initiatives to reduce or eliminate property taxes that are occurring in Florida and other states raise concerns with the impact of reduced revenue for local governments, who are mandated to maintain balanced budgets. Less revenue will require local governments to either cut government services and programs or generate additional revenue through tax and fee increases. Concerns are that these increases will target non-voting commercial real estate.
Heading west, California residents will also head to the polls in November to cast their vote on Proposition 43. This statewide, citizen-led ballot measure would require special local tax increases, including real estate transfer taxes, to receive a two-thirds supermajority of the popular vote to pass instead of a simple majority (50%+). Proposition 43 would close a loophole created by the state Supreme Court’s decision in the Upland case that reduced the threshold to a simple majority. CREDA of California, along with the California Business Properties Association and other organizations, strongly support the ballot measure.
In Tennessee, the legislature placed Amendment 2 on the November ballot to property owners from a state-level tax. The amendment to the state constitution would prohibit the state from imposing property taxes on “real, personal, or mixed property.”
It is worth mentioning that the state of Minnesota currently places a state property tax on commercial real estate and other non-residential homestead properties such as cabins. CREDA Minnesota continues to actively advocate for the elimination of this state tax, arguing that it is an unfair and burdensome tax that targets commercial properties. This is similar to the on-going “spit roll” debate in California.
These ballot measures reflect the many appearing on state ballots this fall. Their outcomes will determine state policy moving forward. It is important for CREDA members to participate in electoral process because many will affect commercial real estate development.
