The North Carolina General Assembly (NCGA) recently passed HB 1089 – Constitutional Amendment Property Tax Levy Limit. The legislation will put a constitutional amendment on the ballot during the 2026 midterm election that asks voters if the NCGA should limit their local property tax bills. And with inflation on the rise, and households struggling to afford their daily needs, this sounds like a great idea. But unfortunately, the amendment is a bad deal for North Carolinians.
Levy limits fail to deliver meaningful relief for the homeowners who need it most. A levy limit is a one-size-fits-all approach that limits how much local governments can collect in property taxes, regardless of property values or service needs.
What North Carolinians need is better targeted property tax relief, such as the Homestead Exemption and Circuit Breaker programs. Simple reforms of these programs could bring significantly more relief for homeowners with low or fixed incomes. For example, in one of NC’s small, rural counties, a married couple with $40,000 in income a year and an $8,000 property tax bill would be able to save $6,000 with an improved Circuit Breaker program, compared to only $300 in savings under a levy limit. In fact, our analysis shows that a levy limit will benefit commercial taxpayers significantly more than individual homeowners. Targeted relief also reduces the cost for counties that depend on the property tax to fund schools, fire and emergency response services, and social services.
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In the meantime, you can take action by sharing this information with your friends and neighbors as they prepare to cast their ballots in November!
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