NC House passes ballot measure to limit property tax increases

The North Carolina House approved three proposed constitutional amendments for the November ballot, including two measures that would ask voters to limit tax increases.

House Bill 1089 would direct the General Assembly to establish limits on how much local governments could increase property tax collections. Those limits could be tied to factors such as inflation and population growth.

The bill was supported by all House Republicans, along with unaffiliated Reps. Carla Cunningham and Nasif Majeed. Other states with similar levy limits typically allow larger increases in certain cases, such as when voters approve them through a referendum.

On the same vote lines, the House also approved Senate Bill 1080, which would cap the state income tax rate at 3.5%, and House Bill 443, which would change the process for filling vacancies in elected Council of State offices.

The vote places Senate Bill 1080 on the statewide ballot this November. House Bills 1089 and 443 now go to the Senate for consideration.

An analysis from the John Locke Foundation found that, over the past decade, nine of North Carolina’s 10 most populous counties collected nearly $3 billion more in property taxes than what inflation and population growth would justify.

Supporters of the proposal also pointed to recent polling that found 76.8% of North Carolinians say property taxes strain their household budgets, while 73.2% support a constitutional amendment to limit future increases.

“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 about House Bill 1089. “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.”

— AKC