By Richard Craver
Independent Tribune, Concord, N.C.
(TNS)
North Carolinians voted convincingly on Tuesday to support Republican-sponsored constitutional amendments, including one that would lower the state’s individual income tax cap.
A simple majority of voters is required for the referendums to be enacted.
The first amendment gives the legislature the authority to cap municipal property tax increases.
With 94.6% of the vote, the amendment has 60.4% for and 39.6% against.
The second reduces the maximum individual income tax rate from 7% to an eventual 2.99%. The 7% cap was approved in a 2018 constitutional amendment that reduced the previous maximum from 10%.
The amendment has 61.9% of votes in favor and 38.1% against.
The legislature passed both bills in May.
Over the past 15 years, constitutional amendments have proven to be a primary strategy for the Republican-controlled General Assembly to put economic and divisive issues before voters.
Since Republicans took control of the House and Senate in January 2011, there have been 13 constitutional amendments before voters, counting the three on the Nov. 3 general election ballot. The third one that was voted on yesterday would require all voters—even people who vote by mail—to show a photo ID.
Of the previous 10, eight have passed, and two have been defeated.
The N.C. Constitution does not allow for voters to petition for a constitutional amendment referendum.
Alexandra Sirota, executive director of the left-leaning N.C. Budget & Tax Center, said state Republican lawmakers are advancing constitutional amendments “that would lock North Carolina into an economy designed to benefit wealthy households and profitable corporations, while making it harder for everyone else to afford life, build security and get ahead.”
Property tax amendment
The property tax constitutional amendment is based on House Bill 1089, which emerged from recommendations by a bipartisan state House committee established by House Speaker Destin Hall, R-Caldwell.
Voters OK’d the legislature to set a property tax levy cap, which bill sponsors have not announced. State law currently limits the authorization of municipality property tax levies to $1.50 per $100 of value.
Proponents of a levy limit say it would prevent local governments from increasing total property tax beyond a certain threshold, likely tied to inflation and population growth.
Residential property tax rates are increasingly in the spotlight in large part because the Republican-controlled legislature has reduced the corporate tax rate from 6.9% in 2012 to 2% in 2026
At 2%, the rate is already the lowest among the 44 states with a corporate tax rate. The rate is on track to reach 1% in 2028 and will be phased out in 2030.
This leaves property, retail sales and hotel occupancy taxes as the primary revenue streams for local municipalities and counties.
Income tax amendment
Senate Bill 1080, titled “Lower taxes for all,” would reduce the individual income tax rate from 3.99% to 3.49% for years 2027-29, then drop to 3.24% for 2030-32, and then be lowered to 2.99% for 2033-34.
The proposed income tax rate reduction schedule would eliminate the requirement of meeting state revenue targets to trigger tax cuts.
Sen. Michael Lee, R-New Hanover, said that sales tax revenue “obviously grows as people move here and spend money here without us even having to touch the particular rate.”
Rep. Robert Reives, D-Chatham, and House minority leader, said the legislation “ties the hands of future legislatures and makes it harder for our state to provide adequate public services and jeopardize our credit ratings.”
“It will really handcuff our ability to address and respond to urgent situations and emergencies at a time the federal government is shifting more of those expenses and unfunded mandates on education, SNAP, Medicaid onto the states.”
Photo credit: KOMUnews/Wikimedia Commons
_______
© 2026 Independent Tribune, Concord, N.C. Visit www.independenttribune.com. Distributed by Tribune Content Agency LLC.
Sign in to get access to this free resource, and all of our whitepapers and reports.
Download this content today!
Register Now Already registered? Click here to Log In
Tags: ballot measures, Income Taxes, North Carolina, Taxes
