Wake commissioners push back on proposed property tax changes

Wake County leaders are pushing back against efforts to give the state more control over property taxes.

State leaders want to limit county and city property tax increases.

In a resolution on Monday, Wake County commissioners said they opposed any change that would limit their control over property taxes.

County leaders said more state control could lead to reductions in service and more fees. 

In a unanimous 7-0 vote, Wake commissioners opposed what's being called a state "levy limit."

It would cap local governments’ authority over property taxes by forcing automatic cuts in certain situations.

A House committee advanced the proposal last week. 

The proposal has to pass the full state house and senate with supermajority support. It could then be put on the ballot for voters to decide. Commissioners said the state should not get involved in local issues.

"This is 75 percent of our revenue," Wake Commissioner Susan Evans said. "It is problematic to think we might get to the point where they might implement limits to what we can do with our property tax rate."

Meanwhile, a leading lawmaker on the committee that advanced the plan says it could provide taxpayer relief. 

"I think that's troubling," said Rep. Erin Pare. "I think a lot of people are really feeling the pain of skyrocketing property tax bills and asking the General Assembly and local governments to do something about it."

Analysts say North Carolina is one of a few states without any sort of levy limit. Abir Mandal, an analyst for the Tax Foundation, a pro-business think tank based in Washington, said similar policies in states like New York and Massachusetts have helped keep property tax bills in check even if property values have gone up. 

"Property taxes there have not risen as fast as they have in North Carolina over the last few years simply because of the levy limit," Mandal said. "Levy limits limit the growth of property taxes over time."

Leaders in other counties are expected to take up similar resolutions, including in Harnett County where last week commissioners asked state lawmakers for more flexibility at the local level for property taxes.

The request came as some longtime residents expressed concern over the possibility of higher tax bills after a recent reappraisal of all parcels in the county. 

North Carolina counties are required by law to reevaluate property to fair market value and adjust tax rates at least once every eight years.

The North Carolina Association of County Commissioners reports receiving seven resolutions from counties on this issue.