Accounting
Guiding clients through property tax turbulence
There has recently been an increasing pushback on property taxes across the country. In November 2024, multiple states including Arizona, Florida, Georgia, New Mexico, Virginia and Wyoming had ballot initiatives passed designed to lower property taxes. Now, Florida lawmakers have taken it one step further by proposing to eliminate property taxes altogether. This begs the question if this is feasible, and if so, how would states generate revenue without property tax revenue?
Over the last few years, property values have skyrocketed. With property taxes tied to a building’s value, this increase has caused a similar increase in property tax assessments. Lawmakers have felt pushback from constituents who are upset about the tax increase on real estate properties. This often leads to increased homestead exemptions, such as Florida’s recent changes, or exemptions for disabled veterans, as occurred in Colorado, New Mexico and Virginia. Most of these exemptions or changes apply primarily to owner-occupied homes and rarely extend to business assets.
North Dakota attempted to take this one step further. A ballot measure in North Dakota designed to eliminate property taxes failed after pushback over the spending cuts this would require. This scenario is similar to a measure attempted in 2012, which also failed; however, it is important to know that the 2024 ballot measure was much closer, with only 63.5% voting against, as opposed to 76.5% voting against it in 2012. The increased pushback on property taxes was especially notable when North Dakota Governor Kelly Armstrong unveiled a plan in January to eliminate property taxes for most homeowners within the upcoming decade.
Florida Governor Ron DeSantis followed suit and is pushing for elimination of property taxes across the state. As a state without an income tax, this could be detrimental to state funding. Property taxes in Florida bring in approximately $50 billion annually, which offsets 50% to 60% of school funding, 18% of county revenue and 17% of municipal revenue. While eliminating the property tax burden sounds good in theory to citizens, making up the gaps in funding becomes an issue. One way to make up this funding deficit would be to increase the sales tax. Unfortunately, to make up the revenue difference, Florida’s sales tax would have to double to nearly 12%.
Increasing sales taxes to offset property taxes can have negative effects. Sales taxes disproportionately affect lower-income earners as they spend a higher percentage of their income on goods and services than higher-income earners. Additionally, this could exacerbate inflationary pressures already felt across the country. Potentially more important to the government is that sales tax revenue tends to be less stable than property tax revenue. In economic downturns, sales tax revenue drops, leading to increasing instability for the state.
Another option states should consider is continuing to increase homestead exemptions for homeowners, or look to eliminate property taxes for homeowners, similar to the proposals North Dakota’s governor proposed. One problem with this proposal is that it shifts the tax burden to businesses from individuals. This could be detrimental to states attempting to attract business investment. Shifting the burden of taxation solely to businesses could make owners question putting down roots in specific locations.
All considerations regarding how to change a state’s property tax revenue reveal how much of a burden it has become in recent years. Increasing costs of homes continues to lead to skyrocketing tax rates affecting homeowners, businesses and governments across the country. What is a business owner or their advisor to do in the meantime? The worst thing a business owner can do is to sit back and wait to see if the government will change its position on property tax. If the North Dakota example shows anything, it is that changing property tax structures is difficult and takes time.
A first step business owners should consider is to question their property tax assessments. What many taxpayers do not realize is that their property tax assessment can — and in many cases should — be reviewed and appealed. With property taxes becoming a much higher burden on businesses and individuals, it’s a perfect time to look to determine if a property is accurately assessed. A qualified property tax consultant can look to determine if the property is accurately assessed or overassessed based on multiple factors. Questioning and appealing assessed values can allow building owners to gain control while waiting to see if local governments will change the way property taxes are levied.
Mauldin & Jenkins, a Top 75 Firm based in Atlanta, is expanding into Greenville, South Carolina by adding Bradshaw, Gordon & Clinkscales, LLC, effective June 1, 2025.
The merger adds seven new partners and 42 professionals to M&J, which already has 76 partners and 510 professionals. Financial terms of the deal were not disclosed. M&J ranked No. 65 on Accounting Today‘s 2025 list of the Top 100 Firms, with $11.7 million in annual revenue.
“This strategic partnership aligns with our mission to offer comprehensive accounting and advisory solutions to clients while expanding our footprint in key markets,” said Mauldin & Jenkins managing partner Hanson Borders in a statement Thursday. “We are excited to welcome the professionals of BGC to our firm and look forward to building on their legacy of excellence in the Greenville community.”
BGC offers audit, tax and business advisory services to clients and dates back over 40 years. “We are thrilled to join forces with a firm that shares our commitment to client service, integrity and long-term relationships,” said BGC managing partner Peter Tiffany in a statement. “This merger represents a strong cultural fit and an exciting opportunity to expand our capabilities while continuing to put our clients’ needs at the forefront of everything we do.”
Last year, M&J added
Top 25 Firm Armanino has entered the Utah market for the first time by adding Cooper Savas LLC, a CPA firm based in Salt Lake City.
The merger is the second since Armanino
The terms of the deal were not disclosed, but Cooper Savas bring seven partners and 35 professionals to Armanino, which ranked No. 18 on Accounting Today‘s 2025 list of the
“Cooper Savas is an exemplary firm that shows how focusing on culture, talent development and quality service can build a highly successful practice,” said Matt Armanino, CEO of Armanino Advisory LLC, in a statement. “We want the best of the best to join Armanino, and Cooper Savas is a firm that exemplifies that. Their addition to the firm brings incredible talent and exciting opportunities to deliver more for their client base as we expand our national footprint.”
Robert Mooring
Founded in 2011, Cooper Savas offers traditional tax, assurance and accounting services, and gives Armanino its first office in Salt Lake City and an entrée to the Utah market.
“Since our founding, we’ve prided ourselves on our ability to deliver a hands-on, thoughtful approach to clients, and we know that Armanino maintains that shared culture and commitment, making this a great opportunity for our firm,” said Phil Cooper, partner and founder of Cooper Savas, in a statement. “Now we have access to Armanino’s extensive resources and innovative solutions, ensuring that clients can receive end-to-end support for their needs. We’re truly excited for what this partnership unlocks for our firm, our people and our clients.”
Following its October 2024
In February of this year, Armanino acquired Boca Raton, Florida-based ERP and technology consulting firm
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The IRS can share taxpayer data with federal immigration officials only in cases involving immigrants with final deportation orders or ongoing criminal investigations, according to a newly unsealed agreement between the Treasury and Homeland Security departments.
The 13-page memo, signed in April by Treasury Secretary Scott Bessent and Homeland Security Secretary Kristi Noem, was released Tuesday by order of a federal court in Washington. It permits Immigration and Customs Enforcement to request tax records under a section of the tax code that allows limited disclosures for non-tax criminal matters.
While the memo doesn’t specify what criminal cases may qualify, it does specify other rules. To obtain IRS data, ICE must provide a name, address, and deportation order date, and it’s required to safeguard any information received.
By agreeing to share taxpayer data at all, the IRS is taking an unprecedented step that breaks with longstanding assurances that such information wouldn’t be used to aid in immigration enforcement. Melanie Krause resigned as the acting IRS commissioner last month as the data-sharing arrangement was
A federal judge on Monday ordered the mostly redacted IRS-ICE agreement to be “almost entirely unsealed” in response to a request from the watchdog group American Oversight. In the same ruling, the judge denied a request from two Chicago-based immigrant advocacy groups to block the data-sharing arrangement, saying they lacked standing to challenge it.
Immigrants have for decades been encouraged to pay income taxes regardless of their status. In 1996, the IRS created an individual taxpayer identification number for foreigners who don’t qualify for a Social Security number, allowing them to file returns.
The Trump administration, as part of a broader effort to kick start its promised mass deportation effort, has reinstituted a World War II-era immigrant-registration system and has vowed to fine and criminally charge those in the US without permission who fail to register.
The White House has argued that the data is necessary to help ICE agents confirm the ongoing presence of specific foreigners living in the US illegally. A DHS spokeswoman has repeatedly defended the arrangement, arguing that the administration is using all available tools to help find immigrants in the county without permission.
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