NC Legislators have placed two constitutional amendments on the November 2026 statewide ballot that have a major impact on public school funding and other community services.
Both amendments address taxation issues that should be handled through the legislative process where they could be debated in a public forum and lawmakers would be held accountable for their votes.
Instead of creating laws to address tax issues as they have done previously, the majority lawmakers are asking voters to change the constitution, which cements the changes unless another constitutional amendment is passed by voters undoing the change.
In 2012 the Kansas legislature enacted similar tax cuts (slashing income tax and sending corporate rates to 0$) in what’s now known as the failed Kansas experiment. The Kansas tax cuts “led to sluggish growth, lower than expected revenues, and brutal cuts to government programs.” The cuts were reversed in 2017 after voters and lawmakers saw how much they had damaged the state. Now the majority lawmakers in NC are asking voters to approve amendments that will take North Carolina down the same road as the failed Kansas experiment.
Senate Bill 1080 “Lower Taxes for All NC” is an act to amend the NC Constitution to reduce the maximum allowable state personal income tax from 7% to 3.5% starting in 2027. This change will lock in the low rate and prevent lawmakers from making a change without going back to the voters for another constitutional amendment.
However, the tax breaks primarily benefit wealthy North Carolinians (See image below). 60% of North Carolinians, those making up to $78,000/year will see a tax break of approximately $14/month ($174/year) while the wealthiest 1% of North Carolinians making over $746,00/year will see a tax break of about $675/month ($8,095/year).
But the reality for most North Carolinians is that the tax cuts will cost more than they save. By limiting state revenue from income taxes, the amendment simply pushes revenue-generation to other areas (e.g. sales tax, usage fees) as the cost to fund government services and education increases. In addition, because there will be less overall state revenue, government cost-cutting will require cuts to services that people rely on such as education, childcare, roads, and public safety. These service cuts may mean North Carolinians have to shoulder more costs than if the government were able to fully fund programs.
For example, fees for drivers’ licenses, car registration, and court fees, and more may go up. Car repairs needed from driving on poorly maintained roads caused by too little revenue to pay for road repairs will eclipse the $14/month tax benefit for most North Carolinians.
Public safety underfunding could endanger lives. Higher fees for garbage service, park entrances, etc. may also be imposed. Continued underfunding of public education may mean families have to pay for tutoring, more school supplies, and textbooks. If the state experiences another natural disaster, the state will be limited in how it can raise revenue to help those in need.
The current state personal income tax is a flat rate of 3.99%, and state law (SL 2023-134) passed in 2023 further lowers the rate if state revenue reaches certain benchmarks. With current legislation in place, there is no need for an income tax cap constitutional amendment.
House Bill 1089 “Property Tax Levy Limit” seeks to change the constitution to impose a limit on how much revenue local governments can raise through property taxes. The amendment directs the General Assembly to create the revenue limit (not a tax rate limit), but doesn’t specify what the limit would be. If the amendment passes, the General Assembly will likely convene in November/December before the new long session begins in January.
This bill is an attempt to address rising property taxes across the state, but it doesn’t recognize that an important cause of property tax increases is the jump in home values over recent years. Many North Carolina cities and towns regularly make the national “best places to live” list, so people are moving to the state and purchasing homes, often driving up prices.
Local governments are also having to fill funding gaps left by the state failing to fully fund its responsibilities. Rep. Brandon Lofton (D-Mecklenburg) said his county government in Mecklenburg is spending nearly half a billion dollars a year in local tax revenue to pay for teachers, district attorneys and court personnel that are needed but that the state is not paying for, despite its responsibility to do so.
State lawmakers have already imposed limits on property tax increases. By asking voters to pass a constitutional change to limit the amount of revenue local governments can raise through property taxes, lawmakers are taking away an important source of revenue for local governments and are imposing state control over local decisions. With less revenue, local governments will be faced with cutting services: “States that have introduced property tax limits have seen local governments closing community pools, considering deep cuts to emergency services, cutting hours and staffing at libraries, and more.”
Public Schools First NC encourages you to VOTE NO on both amendments!
Please share our infographic and fact sheet with your neighbors and family.
NC Budget and Tax Center also has detailed information about the fiscal impact of these amendments. See here, here, and here. Learn more about the amendments and things to consider before you vote.