A majority of North Carolina voters approved constitutional amendments to limit lawmakers’ ability to raise taxes and require voters to show photo ID before casting ballots, according to unofficial results from the N.C. State Board of Elections.
The amendments cement some of Republican lawmakers’ top priorities. Since they took control of the General Assembly in 2011, the party has worked to overhaul the state’s tax policy and strengthen voter ID laws.
Now that voters agreed to the amendments, it would be tough for future lawmakers to undo them. Passing an amendment requires approval from three-fifths of lawmakers and a majority of voters.
Here’s a closer look at the amendments.
Income-Tax Cap
Nearly 62% of voters OK’d an amendment that caps the state’s income tax rate at 3.5%.
This isn’t the first time voters were asked to do so. In 2018, more than 57% of voters agreed to amend the constitution to cap income taxes at 7%.
Proponents say low income tax rates lure businesses to North Carolina, and that the caps will require state lawmakers to rein in spending. But critics say they will restrict future legislatures’ ability to adapt to changing economic conditions, including recessions and natural disasters.
Income taxes account for about half of North Carolina’s general fund, which pays for public schools, health and human services, state employees’ salaries, and other expenses.
North Carolina’s current flat income tax rate of 3.99% is already lower than rates in most other southeastern states, including Virginia, South Carolina, and Georgia. And more cuts are on the way, due to previous legislation passed by the General Assembly: North Carolina’s income tax will drop to 2.99% by 2033, and the state plans to phase out the corporate income tax, which at 2% is already among the lowest rates in the country.
Property-Tax Limits
About 60% of voters agreed to amend the state constitution to require the General Assembly to limit local governments’ property tax increases.
Many homeowners experienced sticker shock in recent years during reappraisals because of skyrocketing property values. Republican lawmakers say property tax limits will help people continue to afford their homes and prevent local governments from overspending.
However, critics say the amendment will limit local leaders’ ability to fund schools, public safety, and other services. They also say local governments might have to raise other taxes and fees to make up for lost revenue. Property taxes generated about half of counties’ budgets and nearly a quarter of municipalities’ budgets this year, according to the liberal NC Budget & Tax Center.
The amendment does not define a specific cap on property taxes. State lawmakers will determine that later.
An existing state law limits property tax rates to no more than $1.50 per $100 of appraised value. County rates currently range from 22.2 cents to 93 cents.
Voter ID
Almost 60% of voters agreed to cement existing legislation that requires all voters, not just those who cast ballots in person, to show photo ID.
The change follows a 2018 amendment in which a majority of voters agreed to photo ID requirements for in-person voting. Legal challenges prevented the law from going into effect until 2023.
Supporters of voter ID laws say they prevent voter fraud, while critics argue they disenfranchise poor and minority voters.
