North Carolina voters could decide on property tax limits this fall
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Republicans in the North Carolina House pushing a constitutional amendment on property tax reform hope to put the question to voters this November. Lawmakers hope that it could address housing affordability.
Why it matters: What's being proposed is a limit on how much property taxes can increase in a given year, a change that local officials worry would affect their ability to pay for schools, roads, first responders and other essential services.
State of play: House Speaker Destin Hall (R-Caldwell) argues that families are getting "ripped off" by counties and that limiting annual tax bill increases would force local governments to curb spending.
- The proposed referendum emerged from a committee that Hall organized that's met several times since December. It advanced Wednesday over objections from some Democrats and now moves to the full House.
How it works: The amendment must be approved by a three-fifths majority, meaning Republicans cannot pass it alone even if 100% united. They'd need at least one Democrat.
- The House would also need buy-in from the state Senate. "We've been out of session. I don't know where all the members stand," said Rep. John Blust (R-Guilford).
What they're saying: Rep. Brian Echevarria (R-Cabarrus) accused some local governments of letting spending balloon in ways that can't be justified by population growth and inflation.
- Rep. Maria Cervania (D-Wake) countered that a constitutional amendment would constrain the General Assembly unnecessarily. "We have a responsibility to try our best to find solutions first," she said.
Zoom in: The ballot question is intentionally vague, asking voters for a "constitutional amendment requiring limits on property tax increases by local governments."
- Even if it reaches the ballot in November and voters approve it, a complicated implementation would follow.
- Rep. Julia Howard (R-Davie) said more work is needed before phasing out any exemptions granted to nonprofit and government entities. Hospitals are growing increasingly likely as a target for having their tax exemptions changed, and Howard accused them of cheating the system and attempting to block reform with their "very intimidating" lobby.
What's next: The full legislature reconvenes in Raleigh next week.