A proposed constitutional amendment to limit how much local governments can raise property taxes passed the North Carolina House Finance Committee on Tuesday, despite concerns from several Democrats about its effect on local services and whether it addresses the main drivers of tax increases.
House Bill 1089 was recommended by the House Select Committee on Property Tax Reduction and Reform, which House Speaker Destin Hall, R-Caldwell, created after complaints from constituents about rising property taxes. Hall and other Republican leaders said local governments were responsible for the 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 a recent press release.
Democratic lawmakers said the state had shifted costs to counties and cities, contributing to higher property taxes. Rep. Eric Ager, D-Buncombe, said lawmakers should examine state mandates on education, law enforcement, and other services.
“I think if we were really serious about fixing the property tax problem, we would begin here looking at ourselves and figuring out how we can support these communities in both their education, their law enforcement, all of those things, and stop creating unfunded mandates,” Ager said.
Ager said he would support the bill in committee, calling it a “good faith effort.”
Rep. Tim Longest, D-Wake, said Wake County would spend $600 million in local funds to cover state funding gaps for public schools, community college operations, jail operations, and foster care. Rep. Brandon Lofton, D-Mecklenburg, said Charlotte-Mecklenburg Schools had 700 teaching positions funded entirely by the county, and said Mecklenburg County would spend $429 million this year on school funding gaps and about $2.9 billion over seven years on items he said were the state’s responsibility.
Tamika Walker Kelly, president of the North Carolina Association of Educators, said limiting local revenue would hurt public schools.