In November, North Carolina voters will decide whether to approve a constitutional amendment requiring legislators to impose a state-wide levy limit on property taxes. Supporters of the bill argue that this will substantially relieve property tax burdens, especially for vulnerable homeowners. To verify this claim, we ran an analysis of how a levy limit would have impacted counties and homeowners across North Carolina in the latest revaluation cycle (last 2-3 years, with some exceptions). This retroactive analysis of how a 2% levy limit would have impacted counties during their last revaluation gives us a clear sense of the broad-spread impact a levy limit would have in communities across the state.
Our analysis found that local governments would have lost over $919 Million in critical funding to schools, transportation, and human services while saving the average NC homeowner only $84 a year in property taxes. Instead of homeowners in need of relief, the biggest tax breaks went to the state’s largest corporate landowners, including Duke Energy, Lowe’s, and Google.
Key Findings
- Property taxes make up over 50% of county revenue
- With a levy limit, counties lost $588 Million in property tax revenue and 75 municipalities analyzed lost $362 Million in property tax revenue.
- 24 counties and 47 municipalities lost more than 10% of their property tax revenue
- More than half of the most-impacted counties have lower than average property tax bills
- On average, homeowners saved only $84/year ($7/month) on property taxes
Explore the Data
Most Impacted Counties & Municipalities
Based on our analysis, a statewide levy limit on property taxes would have a devastating impact on county budgets, especially for many of our small and rural counties, while primarily benefiting corporate landowners. Most homeowners would see a negligible difference in their property taxes as their local governments lose funding for core public services like schools, emergency response, trash collection, libraries, and more. A levy limit will harm communities across the state without relieving homeowners.
Total Impact
Real Solutions for Property Tax Relief
Rather than a levy limit, lawmakers should invest in real property tax relief for homeowners, especially those with low or fixed incomes. The Homestead Exemption and NC Circuit Breaker already exist to provide relief to homeowners most in need, and simple eligibility updates and program improvements can expand these programs to reach more cost-burdened households without undermining local revenues. Lawmakers can also support tax assessors at the local level with state-funded technical assistance that would make property taxes more fair for everyone. For more information, check out our guide to Bringing Fair and Meaningful Property Tax Relief to North Carolinians.
