NC House Panel Advances Constitutional Amendment to Cap Property Tax Increases
A constitutional amendment to cap local property tax increases advances through the NC House despite Democratic warnings about potential service cuts.
RALEIGH, NORTH CAROLINA — A proposed constitutional amendment to limit local government property tax increases advanced in a North Carolina House committee Tuesday, despite Democratic concerns that it may not address the root causes of rising tax bills.
House Bill 1089 passed the House Finance Committee following a recommendation from the House Select Committee on Property Tax Reduction and Reform. The amendment arose from constituent complaints about property tax hikes that have made it difficult for some residents to afford staying in their homes.
House Speaker Destin Hall (R-Caldwell) created the special committee to examine tax reform and has attributed rising tax burdens to local government actions.
Republican Leaders Blame Local Governments
“Families are getting ripped off as some, but by no means all, local governments rake in billions more than inflation and population growth warrant,” Hall said in a recent press release.
The constitutional amendment would establish caps on how much local governments can increase property tax levies annually. Republican supporters argue the measure will protect taxpayers from excessive tax increases that threaten homeownership affordability.
Democrats Raise Concerns About Root Causes
Several Democratic lawmakers questioned whether the amendment addresses the underlying factors driving property tax increases. State Rep. Eric Ager (D-Buncombe) told colleagues that state-imposed costs on local governments are the real culprit behind rising taxes.
“I think if we were really serious about fixing the property tax problem, we would begin here looking at ourselves and figuring out how we can support these communities in both their education, their law enforcement, all of those things, and stop creating unfunded mandates,” Ager said.
Critics warn that limiting property tax revenue could force local governments to reduce essential services. Property taxes fund community needs including public safety, education, and public health programs.
Bipartisan Acknowledgment of Problem
Despite his concerns about the approach, Ager acknowledged the severity of the property tax issue affecting North Carolina residents. He described the proposed amendment as a “good faith effort” to solve the problem that has some taxpayers worried about being able to remain in their homes.
The amendment must pass both chambers of the General Assembly before appearing on a statewide ballot for voter approval. Constitutional amendments require voter ratification to take effect in North Carolina.
Local governments across the state have faced increasing pressure to balance rising costs for services while managing property tax rates that directly impact homeowners and businesses. The debate reflects broader tensions between state oversight and local government autonomy in fiscal matters.
The House Finance Committee’s approval moves the measure closer to a full House floor vote, where Republican majorities are expected to support the amendment despite Democratic opposition.
