NC House Speaker Forms Committee To Study Property Taxes

By Carolina Journal Staff

RALEIGH – North Carolina House Speaker Destin Hall has announced the creation of the House Select Committee on Property Tax Reduction and Reform. The 23-member committee is tasked with reviewing factors that contribute to rising local property taxes and identifying ways to reduce the burden on homeowners.

The committee will examine existing relief programs, county revaluation practices, constitutional flexibility for local governments, and local spending and debt trends that affect property tax assessments. Recommendations and potential legislation are expected ahead of the 2026 short session. Four bills designed to reduce some property taxes were introduced in the last legislative session, but none passed the legislature.

The NC House passed House Bill 432 unanimously in April to study property tax relief, but it was never taken up by the NC Senate.

“The committee’s priority should be to shine a light on how rising property tax bills are squeezing North Carolina families,” said John Locke Foundation fiscal analyst Joe Harris. “In many counties, valuations have grown much faster than inflation and income, and some local governments have used that windfall to expand spending beyond basic growth needs. Once the problem is illuminated, the challenge will be crafting reforms that deliver real relief for taxpayers while maintaining appropriate local government flexibility. Striking that balance is essential if North Carolina is going to keep local spending in check while still preserving local governments’ ability to raise revenue.”

In an April blog post, Harris pointed out that North Carolina home values have skyrocketed by 67.1%, over the last five years, creating concern among homeowners about the affordability of their property tax bills. He outlined the state’s available property tax relief programs, like the Homestead Exclusion and the Circuit Breaker Deferment, and the challenges some homeowners face despite these measures.

“I know how hard North Carolina families work to build stability in the home, and they shouldn’t be hit with out-of-the-blue property tax spikes that threaten that,” said committee Co-Chair Julia Howard, R-Davie, in the announcement on Monday. “That’s why I’m proud to help lead this committee. By thoroughly reviewing our state’s property tax system, we’ll deliver practical, commonsense reforms that give homeowners the relief, fairness, and transparency they deserve.”

“North Carolinians are concerned about the affordability of owning a home, and they deserve a solution that works for them while being fair to local government,” added Mitchell Setzer, R-Catawba, who is co-chairing with Howard.

The committee also includes Vice-Chairs Brian Echevarria, R-Cabarrus; and Neal Jackson, R-Moore; along with Reps. Jonathan Almond, R-Cabarrus; Tricia Cotham, R-Mecklenburg; Keith Kidwell, R-Beaufort; Larry Potts, R-Davidson; Dennis Riddell, R-Alamance; Mike Schietzelt, R-Wake; Harry Warren, R-Rowan; Sam Watford, R-Davidson; Diane Wheatley, R-Cumberland; Jeff Zenger, R-Forsyth; Eric Ager, D-Buncombe; Becky Carney, D-Mecklenburg; Maria Cervania, D-Wake; Carla Cunningham, D-Mecklenburg; Frances Jackson, D-Cumberland; Abe Jones, D-Wake; Nasif Majeed, D-Mecklenburg; and Brian Turner, D-Buncombe.

A recent study from the Tax Foundation ranked North Carolina 36th highest property taxes in the nation, with Northhampton County having the highest property taxes in the state. Jackson County has the lowest property tax burden at 0.369%. Their report found that in fiscal year 2022, property taxes comprised 27.4% of total state and local tax collections in the United States, more than any other source of tax revenue.

“Out-of-control property taxes is an affordability issue. High property taxes can make home ownership out of reach for hard-working North Carolinians and force seniors on a fixed income out of their homes because they can’t afford sky-rocketing property taxes,” said Co-Chair Erin Paré, R-Wake. “This new committee will work to deliver responsible reforms that balance homeowner affordability with a local government’s ability to meet community needs.”