NC House committee advances proposal to limit property tax increases

RALEIGH, NC (WWAY) — A North Carolina House committee has recommended a proposed constitutional amendment that would limit how much local governments can increase property tax collections.

The House Select Committee on Property Tax Reduction and Reform advanced the proposal Wednesday, which would require the General Assembly to establish caps on property tax levy increases. The limits would likely be tied to factors such as inflation and population growth, according to the proposal.

Under the plan, local governments could still exceed those limits under certain conditions, such as when increases are approved directly by voters.

If approved by the General Assembly during the current legislative session, the amendment would be placed on the statewide ballot on Nov. 3, 2026, for voters to decide.

Supporters of the proposal cite data from the John Locke Foundation indicating that nine of the state’s 10 most populous counties collected nearly $3 billion more in property taxes over the past decade than would be expected based on inflation and population growth.

Polling referenced in the release found that 76.8 percent of respondents said property taxes are a burden on their household budget, while 73.2 percent said they support a constitutional amendment to limit increases.

House Speaker Destin Hall said in a statement that the proposal is aimed at addressing concerns about rising property taxes and providing relief to residents.

The proposal would require further legislative approval before appearing on the ballot.