North Carolina Voters Approve Property Tax Limits

North Carolina voters approved a constitutional amendment aimed at limiting property tax increases. The measure passed with 60.4% support, just above the 60% threshold required for approval. It does not establish the limits itself. Lawmakers in the General Assembly will write those rules later.

Supporters said rising property assessments have allowed some local governments to collect more from residents without matching gains in public services. House Speaker Destin Hall created a 23-member committee last year to study possible property tax changes. Conservative groups and commercial interests backed the amendment as a way to restrain local spending and shield property owners.

Opponents warned that tighter limits could reduce the money available to local governments. The North Carolina Housing Coalition said the largest corporate property owners could receive the biggest gains, while single-family homeowners see less benefit. Education advocates also warned that reduced local revenue could affect classroom space, school buildings and staffing. North Carolina's average effective tax rate on owner-occupied homes is .66%, below the 1.88% rate cited for New Jersey and Illinois.