NC House Approves Proposed Constitutional Amendment To Limit Property Tax Increases

RALEIGH, N.C. – The North Carolina House approved a series of proposed constitutional amendments Wednesday, including a measure aimed at limiting future increases in local property taxes.

The proposal, contained in House Bill 1089, would direct the General Assembly to establish levy limits restricting how much local governments could increase property tax collections beyond factors such as inflation and population growth. The measure received support from all House Republicans as well as unaffiliated Representatives Carla Cunningham and Nasif Majeed.

If ultimately approved by both chambers of the General Assembly, the amendment would appear before voters on the November ballot.

Supporters said the measure is intended to provide relief for homeowners facing rising tax bills amid increasing property values and local government spending.

“Property taxes are out of control, and some local governments are abusing their power by overtaxing and underdelivering for their constituents,” House Speaker Destin Hall said in a statement. “It’s time for real reform, and this constitutional amendment on levy limits will help stop runaway property tax hikes and protect North Carolina taxpayers.”

According to supporters of the legislation, states with similar levy limits often allow local governments to exceed caps under certain conditions, including voter approval through a referendum.

The House also approved Senate Bill 1080, which would place a constitutional cap of 3.5% on North Carolina’s income tax rate. That proposal is now headed to voters statewide this November.

In addition, lawmakers passed House Bill 443, which would change the process for filling vacancies in elected Council of State offices. That measure, along with House Bill 1089, now moves to the Senate for consideration.

Backers of the property tax proposal cited analysis from the John Locke Foundation that found nine of North Carolina’s 10 largest counties collected nearly $3 billion more in property taxes over the past decade than what inflation and population growth would have justified.

Supporters also pointed to recent polling they said showed widespread concern over rising property taxes. According to the survey referenced by proponents, more than three-quarters of North Carolinians said property taxes place a strain on household budgets, while more than 70% supported a constitutional amendment limiting future increases.