Critics say NC’s property tax amendment could do more harm than good

There will be much at stake in November when North Carolinians go to the polls.

The state has one of the nation’s most closely-watched U.S. Senate races. A win by former North Carolina Gov. Roy Cooper — a Democrat matched against Michael Whatley, former chairman of the Republican National Committee — could help change the balance of power in the Senate.

But for some homeowners, particularly those living on fixed incomes, rising property taxes will also be top of mind on Election Day. That’s when voters will be asked to consider a Republican-backed constitutional amendment requiring state lawmakers to pass laws limiting the maximum amount that local leaders can increase property taxes.

The amendment, Republican leaders said, grew out of homeowners’ growing discontent about high property taxes. Seniors in particular are having a tough time aging in place because high property taxes are forcing them out of homes, they said.

“It was because of the outpouring of concern over years … from constituents, mostly seniors, but pretty much everybody,” State Rep. Erin Paré (R-Wake) told NC Newsline. “I think even my friends from the other side of the aisle can attest to that, that they [constituents] just were seeing their property tax bills go up, and it was kind of unpredictable.”

As NC Newsline previously reported, the House Select Committee on Property Tax Reduction and Reform recommended adding the constitutional amendment to the ballot. House Speaker Destin Hall (R-Caldwell) created the committee to examine tax reform as a result of constituent complaints.

Hall and other Republican leaders blame local governments for excessive increases.

“Families are getting ripped off as some, but by no means all, local governments rake in billions more than inflation and population growth warrant,” Hall said in the spring.

Local government officials, progressive advocacy groups and Democratic lawmakers who oppose the measure say that limiting the amount of tax revenue local governments can collect could have dire consequences for local governments, which could be forced to cut services.

Local property taxes help pay for vital needs like public safety, education, and public health.

“It would undermine local decision-making about how communities fund schools, emergency services, libraries, and more, even as communities are trying to respond to rising costs.” Alexandra Sirota, executive director of the NC Budget and Tax Center, said in a statement.