RALEIGH, N.C. (NCN News) – With the help of two former Democrats, the State House approved three constitutional amendments for this November’s ballot, two of which will give voters the opportunity to limit tax increases. The ballot questions were also approved by the State Senate.
Supported by all House Republicans and unaffiliated Reps. Carla Cunningham and Nasif Majeed, the constitutional amendment in House Bill 1089 directs the General Assembly to establish levy limits that prevent local governments from raising property taxes beyond a set threshold, such as inflation and population growth.
Other states with similar levy limits typically allow higher increases under certain circumstances, such as voter approval through a referendum.
By the same vote, the House also passed Senate Bill 1080, which will cap the state’s income tax rate at 3.5 percent, and House Bill 443, which modifies the process for filling vacancies in elected Council of State offices.
On HB 1089, Speaker Destin Hall said, “Property taxes are out of control, and some local governments are abusing their power by overtaxing and underdelivering for their constituents. 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.”
The effort by state leaders to limit local taxing has been with opposition, for example a resolution passed by the Durham County Commissioners in April
In approving the resolution of opposition, Board Chair Mike Lee said, “Local government works because it answers directly to local people. Residents can attend a Board of County Commissioners’ meeting or reach out in writing to make their voices heard, and they know that we, as elected officials, are accountable for every choice we make on their behalf. Most importantly, when our decisions don’t reflect the will of the community, they have the power to elect new Commissioners.
“That accountability depends on having the authority to govern. In Durham County, property taxes support nearly 60 percent of our general fund operating budget, funding the infrastructure, mandated services, and community priorities that keep this county strong. The strength of this state depends on local governments having the tools and authority to serve their communities.”
The resolution noted, “the authority to levy, assess, and adjust property taxes allows county governments to respond responsibly to changing economic conditions, population growth, service demands, emergencies, and state or federal mandates”.
It continued to state that “property taxes constitute a primary, stable, and locally controlled source of revenue necessary to fund these essential county services and to meet both ongoing operational needs and long-term capital obligations”.
Americans for Prosperity North Carolina posted on social media that these moves “will reign in out of control local spending.”