The North Carolina House Republican Caucus said on April 17 that the NC House Republicans advanced a constitutional amendment that would require the General Assembly to enact laws limiting the amount by which the levy on property may increase.
The proposed amendment aims to address concerns about rising property taxes and provide greater predictability for homeowners, renters, and businesses. The measure follows ongoing scrutiny of local government revenue collections and seeks to establish constraints on how much property tax levies can grow each year.
The NC House Republicans announced via social media that the organization advanced a constitutional amendment following the House Select Committee on Property Tax Reduction and Reform vote to recommend the proposal. The committee action directs the General Assembly to establish constraints on property tax levy growth while the measure still requires approval by the full House and Senate with a three-fifths majority before it can appear on the ballot for voters. Local governments continue to face scrutiny over revenue collections, according to <a href="https://x.com/NCHouseGOP/status/2044893988419670352″>the caucus.
Property tax revenues in North Carolina’s ten largest counties exceeded inflation plus population growth by more than 2.6 billion dollars over the past decade. County property tax collections grew an average of 63 percent while the benchmark based on inflation and population would have allowed only 51 percent growth. Nine out of the ten counties exceeded the benchmark with the largest gaps in fast-growing areas such as Cabarrus and Wake counties, according to <a href="https://www.carolinajournal.com/study-ncs-largest-counties-increased-taxes-beyond-inflation-population-growth/”>Carolina Journal.
Levy limits on property taxes exist in numerous states to control revenue growth and provide predictability for taxpayers. These limits typically cap annual increases in total property tax revenue or link growth to inflation and population changes with exceptions allowed in some cases. Such measures have been used to ensure local government spending remains aligned with resident needs without automatic tax hikes driven by rising property values, according to <a href="https://www.lincolninst.edu/publications/working-papers/property-tax-levy-limits”>the Lincoln Institute of Land Policy.
The NC House Republicans comprise the Republican caucus in the North Carolina House of Representatives. They hold the majority with 71 members led by Speaker Destin Hall and focus on policies that promote economic growth and reduce burdens on families and businesses. The Select Committee on Property Tax Reduction and Reform was formed to study and recommend changes addressing rising property tax concerns across the state, according to <a href="https://www.nchouserepublicans.com/”>the caucus website.
