North Carolina property tax cap would allow future legislatures to adjust limits
Unlike a fixed income tax cap, the proposed amendment gives lawmakers discretion to set and revise annual tax increases.
By Maya Morris ·
North Carolina voters will decide on Tuesday whether to add a property tax cap to the state constitution. The amendment would require the General Assembly to limit how much local governments can raise property taxes in a single year. This measure is one of three constitutional changes on the ballot, alongside a cap on state income taxes and a requirement for photo identification for mail-in votes.
The proposal aligns with a national trend where seven states are considering similar restrictions. The movement gained momentum in Florida, where Republican Governor Ron DeSantis has discussed the possibility of eliminating property taxes entirely. In North Carolina, rising home values have increased tax bills for homeowners even when local governments lower their rates. Additionally, declining office building values have shifted more of the financial burden to residential property owners in areas like Charlotte.
House Speaker Destin Hall supported the measure in the spring, stating that constituents view property taxes as out of control. North Carolina Republicans have identified tax relief as a primary goal, and the amendment provides a visible policy position for the upcoming election. However, political science Professor Chris Cooper of Western Carolina University questioned whether the amendment would significantly boost Republican voter turnout. He described the idea that the measure would drive large numbers of conservative voters to the polls as a stretch on credibility.
The structure of the amendment differs sharply from the proposed income tax cap, which sets a fixed rate of 3.5%. That limit would be difficult to change without a new constitutional vote. The property tax amendment, however, is vague. It mandates that the legislature establish limits but does not define specific formulas. Lawmakers could choose to tie increases to inflation or use a formula combining population growth and inflation. Because the legislature holds this authority, future sessions could revise the caps to make them stricter or looser.
Local officials have largely opposed the measure. Charlotte and Mecklenburg County managers argue the amendment limits their ability to respond to community needs. The opposition is not limited to Democratic-leaning areas; the Union County Commission, a conservative body, also opposes the amendment. Joy Hicks of the North Carolina Association of County Commissioners said local governments will need to ensure any implementing legislation protects their fiscal flexibility.
The amendment is expected to pass, with the General Assembly likely to draft implementing language in December. Former Charlotte City Manager Curt Walton noted that city managers have historically delayed tax hikes to please elected officials. Under the new rules, managers may instead propose small annual increases at or near the limit. This approach could replace large periodic hikes with consistent yearly adjustments.
Source: WFAE
