Constitutional Amendment Requiring Limits on Property Tax Increases by Local Governments

The law today

Article V, Section 2(5) of the North Carolina Constitution currently bars the General Assembly from authorizing local governments to levy property taxes except for purposes authorized by general law uniformly applicable throughout the State, unless approved by a majority of the unit's voters; it contains no requirement to limit levy increases. There is no state property tax in North Carolina; counties and municipalities set the rates.[1][7]

Official fiscal estimate

The Fiscal Research Division (May 5, 2026 fiscal note on H.B. 1089) estimated no fiscal impact: the bill only holds a referendum, the specifics of any levy limit would be set in later legislation and addressed by a future fiscal note, and election costs are anticipated to be minimal.[6]

Arguments made for

• House Speaker Destin Hall (R-Caldwell) said: "Property taxes are out of control, and some local governments are abusing their power by overtaxing and underdelivering for their constituents. It's time for real reform, and this constitutional amendment on levy limits will help stop runaway property tax hikes and protect North Carolina taxpayers."[2]
• Rep. Brian Echevarria (R-Cabarrus), a primary sponsor, said: "The resulting debate led to the conclusion that asking the people whether they want a constitutional amendment requiring limits on property tax increases by local governments is the next step toward a modern, fairer, and more predictable property tax system."[3]

Arguments made against

• Alexandra Sirota, executive director of the NC Budget & Tax Center, said: "A levy limit will not address the unaffordable housing costs that so many households are facing. What legislators need to do today is to invest in building more affordable housing and providing direct relief to households that are faced with unaffordable property tax bills."[2]
• Rep. Deb Butler (D-New Hanover) said: "The truth is, property taxes are not rising because cities and counties suddenly went on a wild, drunken binge and started spending like sailors. It's because of the cost shifting that we have done from this body." She said reforms to existing property tax relief programs could yield savings of up to $6,000 for some households, compared with about $300 from a levy limit.[3]

On record in support

• House Speaker Destin Hall (R-Caldwell) said property taxes are out of control and some local governments are overtaxing.[2]
• Rep. Brian Echevarria (R-Cabarrus), a primary sponsor, said North Carolinians deserve a chance to reform the property tax system.[3][7]

On record in opposition

• Alexandra Sirota, executive director of the NC Budget & Tax Center, said a levy limit will not address unaffordable housing costs.[2]
• NC By the People, a ballot referendum committee of 20 organizations, is campaigning against all three amendments, including this one.[8]
• North Carolina Association of Educators, a coalition member, was quoted in the coalition's release saying the amendments would gut county budgets that fund schools.[8]