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Tuesday, 12 May 2026
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Written by John Hood
If Speaker Destin Hall and other leaders of the House of Representatives get their way — and I strongly suspect they will — voters will decide this fall whether to amend the state constitution to limit the growth of property-tax burdens across North Carolina.
Here’s how the ballot item would read: “Constitutional amendment requiring limits on property tax increases by local governments.” If most voters say yes — and I strongly suspect they will — the General Assembly will then specify by statute how the limits would function.
Although the details might change, what supportive lawmakers intend to do is cap the growth of local tax collections on assessed property at population growth plus general price inflation. That’s already the rule the General Assembly follows, more or less, when fashioning the state budget. It seems reasonable to most legislators, and to me, to establish a similar speed limit on property taxes.
Now, my choice of words here is far from arbitrary. When I say that the General Assembly “more or less” caps state spending growth at inflation plus population growth, I mean to underline that the cap applies only to the General Fund. Most state spending now occurs outside the General Fund, as it is either financed by federal revenues and user charges or is funded “above the line,” through revenue diversion, rather than formal appropriation. Neither makes the state spending cap worthless. It still imposes necessary fiscal discipline and helps to explain how North Carolina has reduced the state tax burden over time while also funding core services.
Similarly, a constitutional “levy limit” on property-tax growth won’t keep counties and municipalities from funding core local services or making capital investments in infrastructure to accommodate future population growth and economic development. It won’t slam the brakes. Rather, it will act as a governor on the accelerator, keeping the vehicle of government from speeding recklessly.
For example, I believe state lawmakers are likely to apply the growth cap on property-tax revenues to preexisting properties, not new residential, commercial, or industrial development. Tax-policy consultant Jared Walczak calls this option the Brownsville model, after the Texas jurisdiction of that name, and contrasts it with the Boise model (where the levy limit applies to both new and existing property) and the Boston model (where new construction is added to the cap itself).
My John Locke Foundation colleague Joe Harris prefers the Brownsville model, and I tend to agree. A primary motivation for property-tax reform is to keep current owners, be they households or businesses, from experiencing sudden huge spikes in property values and the tax bills that result from them. At the same time, property-tax collections ought to bear some relationship to expansion and development, so that localities can deliver services commensurate with growing demand.
The Boise model is too tight, the Boston model often too loose. The Brownsville approach, Harris argues, “offers the most transparent and accurate constraint on tax growth.”
I know many local officials are upset about the prospect of a constitutional constraint on property-tax burdens. But I would advise them to focus on how it ought to work, not whether to have one. While some policymakers in other states are flirting with the idea of abolishing property taxes altogether — replacing them, wholly or partially, with higher sales taxes — that’s not where North Carolina leaders are going. They seek to retain property taxation as a reliable and relatively efficient means of funding services such as public safety and infrastructure that benefit people in rough proportion to the “stake” they have in the community.
Given how up in arms some homeowners are about dramatic revaluations, however, and the fact that nearly three-quarters of respondents to a recent Carolina Journal Poll favor the House’s proposed constitutional amendment, local leaders should embrace discretion as the better part of valor here.
Statewide levy limits aren’t new or weird. They’ve worked reasonably well in other places for decades. I strongly suspect they’ll work well in North Carolina, too.
Editor’s Note: John Hood is a John Locke Foundation board member. His books Mountain Folk, Forest Folk, and Water Folk combine epic fantasy with American history (FolkloreCycle.com).
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Tuesday, 05 May 2026
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Written by Margaret Dickson
Did you wince as you paid your property taxes this year?
I did.
I am also appealing a revaluation of property our family owns in another North Carolina county, as the appraisal on a next-door lot of almost exactly the same size was valued at less than half of the Dicksons’ appraisal. Fingers crossed on that one.
That said, a proposal floating around in the North Carolina General Assembly for a state constitutional amendment limiting property taxes is a bad idea and then some. So far, no local government has ever hit the current limit of $1.50 per $100 value, which makes the proposed amendment look like a solution in search of a problem rather than a problem itself.
Property taxes are imposed locally to pay for local services, most of which we expect to be in place when we need them.
For example, if someone breaks into my residence, assaults me on the street, or hijacks my car, I definitely want a well-trained, adequately compensated law enforcement officer on duty to handle the situation. If I am injured, I definitely want a well-trained, adequately compensated EMS professional to tend to my injuries. I want garbage pickup and recycling services in my community, as well as parks for recreation and communing with nature. I want firefighters, streets with few potholes, sidewalks, and stormwater management programs. And, although my own precious jewels are long out of formal education, I want good schools for today’s students because education ultimately floats all boats.
All of these services are supported at least in part by local dollars raised by local property taxes. It is a gross generalization to say that lower taxes will mean fewer services, but it is also true.
Having been there and done that, I understand why some members of the General Assembly are supporting this constitutional amendment and why those who understand the tactic but do not support it would have a hard time voting against putting such a measure on the ballot in November. The hard, cynical truth is that no one in the history of the world has ever been successful on a platform of “I will never lower your taxes,” and no one wants to lose an election.
Short of further limiting local property taxes, even though no county has yet reached the current limit, what can be done to ease the very real burden suffered by some property tax payers?
Various proposals have been advanced for more nuance than provided by North Carolina’s current flat-rate property tax system. Second homes could be taxed at higher rates than primary residences. The current property tax valuation system—the one I am appealing—has obvious issues, as thousands of taxpayers can attest. Perhaps our burgeoning AI industry can help with this. Perhaps it will make it worse, but, at the moment all across the country and in North Carolina, expensive properties tend to be undervalued, and modest properties tend to be overvalued, a situation that generates enormous resentment. We could consider expanding property tax reductions for certain demographic groups like seniors and disabled individuals, including veterans.
The proposed constitutional amendment is a “one size fits all” vehicle when a more thoughtful and nuanced approach is needed. Individual taxpayers have our own situations, as do individual communities. None of us should be taken in by this “run on” bill, as in “I need a crowd-pleaser piece of legislation to ‘run on’ in 2026.”
This is a real-world example of “be careful what we wish for because our wish just might come true.” We can and should do far better than this.
Editor’s Note: Margaret Dickson served in the North Carolina General Assembly for four terms.