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NC House Panel Backs Amendment to Curb Local Property Tax Hikes

The vote signals a push for statewide guardrails on local taxes with possible effects on city budgets.

Overview

  • The House Select Committee on Property Tax Reduction and Reform, which voted Wednesday, advanced a constitutional amendment to limit how much cities and counties can raise property taxes and also moved a draft bill to narrow nonprofit tax exemptions.
  • The amendment includes no specific cap and leaves the method of limiting increases to lawmakers if voters later approve the change.
  • To reach the ballot, the proposal must clear supermajority votes in both the House and Senate, with a possible statewide vote this fall if it advances during the upcoming short session.
  • Supporters say property tax bills have jumped in recent years and argue that statewide limits would protect long‑time homeowners and people on fixed incomes from unpredictable hikes.
  • Local officials and municipal advocates warn the plan could constrain funding for core services like police, fire, and schools because property taxes are a primary source of city and county revenue.