BY REP. TODD CARVER

One of the most common things I heard from voters on the campaign trail during the recent primary election was over the increase in property taxes. I have spoken to seniors who say they are simply being priced out of their homes by rising property taxes. There is some value in understanding the process of how this works for us as citizens in North Carolina.

Voters select city council, town commissioners and county commissioners who set the property tax rate for the property in their jurisdictions. The rate in Iredell County is currently 50 cents per $100 of valuation. Iredell County also has a 9 cent fire tax per $100 of valuation dedicated to supporting fire departments across the county. (Residents of Mooresville and Statesville do not pay this tax because fire departments in those municipalities are funded by municipal taxes.)

Iredell County consistently has one of the lowest property rates of any non-costal county in North Carolina. Costal counties have the advantage of tourism related taxes and therefore a lower burden on their permanent residents.

So, if we have a relatively low rate, then why are so many people feeling the pinch and voicing their complaints to me at the polls? The rise in property values has pushed up the actual amount of tax paid by residents. It’s a good thing when property values are rising and our homes are worth more, except this causes a higher assessment. Property assessments are required to be conducted, and the counties are required to make those evaluations based on market conditions.

The N.C. General Assembly has approved a referendum for this fall that, if passed, would cap property tax increases.

The proposed change being considered in the General Assembly is:

A BILL TO BE ENTITLED, AN ACT TO AMEND THE CONSTITUTION OF THE STATE TO REQUIRE THE LEGISLATURE TO ENACT A PROPERTY TAX LEVY LIMIT.

The question to be used in the voting systems and ballots shall be: [ ] FOR or [ ] AGAINST a Constitutional amendment requiring limits on property tax increases by local governments.”

I believe voters will support a Constitutional amendment directing the legislature to create limits on property tax increases. The real work will begin in the next session of the N.C. General Assembly. There is already a limit of $1.50 per $100 of assessed value. The highest rate of any county in North Carolina is currently 99 cents per $100 of valuation. The legislature could lower that threshold and limit the ability of local governments to increase taxes up to a new baseline. We could adjust the percentage of increases allowed during those re-evaluation years. No one can say what will be done without a directive from the voters to start this process.

What this referendum will not do is give the General Assembly the authority to set local property tax rates. I have heard from many people who have been told that lawmakers want to set the rate for counties. This is simply not true.

The services provided by the local governments will always be decided at the local level. The proposed amendment to the state Constitution would try to ensure taxpayer has some protection against property tax increases. No one wants to take away the power of city councils, town commissioners and county commissioners to provide services. We are simply asking the voters if they believe in providing some limits on those increases.

I look forward to hearing from the voters in November. This is a real issue with real consequences North Carolinians. There is no value in obtaining the American dream of home ownership if you can’t keep the home because the property taxes force you out.

Rep. Todd Carver represents the 95th District in the N.C. House. Email him at todd.carver@ncleg.gov.