NC property tax amendment heads to November ballot

North Carolina voters, including residents across Rutherford County, will decide this November whether to amend the state constitution to require limits on how much local governments can increase property tax levies.

House Bill 1089, titled the “Const. Amend. Property Tax Levy Limit,” cleared the North Carolina General Assembly on Wednesday after passing the House 73-46 and the Senate 31-15. The proposal now heads to the statewide ballot for the November 2026 election.

If approved by voters, the amendment would require the state legislature to create limits on future local government property tax levy increases through a later law.

The ballot question will ask voters whether they support a “constitutional amendment requiring limits on property tax increases by local governments.”

The proposal comes as many North Carolina homeowners continue to see rising property values and larger tax bills, including in western North Carolina communities where reassessments and population growth have increased pressure on local budgets.

A property tax levy limit differs from a tax rate cap. Instead of limiting the tax rate itself, a levy limit would restrict the total amount of property tax revenue a county or municipality could collect each year. Future increases could potentially be tied to factors such as inflation, population growth or economic conditions, though lawmakers would still need to decide the details if the amendment passes.

Supporters of the measure say it would provide additional protections for taxpayers and force local governments to control spending growth.

State Sen. Tim Moffitt, a Republican representing Rutherford County and parts of western North Carolina, said local governments should face similar fiscal constraints as the state government.

“For years we’ve seen some municipal and county governments impose exorbitant tax rates on their residents with little to no regard for fiscal restraint,” Moffitt said during debate on the proposal.

House Speaker Destin Hall also backed the amendment, arguing that rapid property tax growth has become difficult for many homeowners to absorb.

Critics, including some Democrats and local government organizations, warn the amendment could eventually limit counties’ and towns’ ability to fund schools, emergency services, infrastructure projects and public safety operations.

That debate could become especially important in counties like Rutherford, where local governments rely heavily on property taxes to fund core services, including law enforcement, emergency medical services, public schools and county operations.

The amendment itself does not establish a specific limit. Instead, it would place the requirement into the constitution and leave lawmakers to later determine how the cap would work.

Joseph Harris, a fiscal policy analyst with the John Locke Foundation, said the effectiveness of the amendment would depend on how the future law is written.

“A well-designed limit should account for inflation and population growth so it reflects real economic conditions,” Harris said.

Supporters point to rising property tax collections across North Carolina as evidence that reform is needed. A study by the John Locke Foundation found property tax revenues in the state’s 10 largest counties exceeded inflation and population growth by more than $2.6 billion over the past decade.

A poll released earlier this year found that more than three-quarters of respondents said property taxes have become a burden on household budgets, while more than 70% said they would support constitutional limits on local property tax increases.

The amendment will appear before voters statewide in November alongside other proposed constitutional tax changes, including a separate proposal that would lower the maximum state income tax rate allowed under the North Carolina Constitution to 3.5%.

For Rutherford County residents, the vote could shape how county commissioners, municipalities and future local boards handle property tax growth for years to come.

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