Options for Expanding Property Tax Relief for Lower Income Homeowners

<p>Uniformity is a defining characteristic of our state’s property tax system. As I’ve written before, both our state constitution and the Machinery Act (the collection of state statutes that govern property taxes) require that all local governments across North Carolina play by the same property tax rules.  Only the General Assembly is authorized to create property tax exemptions, and when that legislative body creates exemptions they must apply uniformly across the state.  Neither cities nor counties are free to make their own property tax exemptions or modify those that are created by the General Assembly.</p> <p>This uniformity requirement limits tax-related options for local governments to help lower income taxpayers remain in their homes as inflation (at a 40-year high), real estate prices (up 26% across the state over the past year), and property tax bills continue to rise.  Knowing that they cannot create their own property tax exemptions for their homeowners, a few local governments instead have offered limited cash payments to help certain taxpayers with their bills.  To read about the legal questions surrounding these tax assistance programs, click here.  To read about the details of the tax assistance programs offered recently by two North Carolina counties, click here (Durham County) or here (Mecklenburg County).</p> <p>Given the limitations on local property tax solutions, some neighborhood affordable housing organizations have encouraged the General Assembly to expand the Machinery Act’s existing property tax exemptions for homeowners.  One idea proposed by housing advocates is to modify the “circuit breaker” residential tax exclusion so that it benefits more taxpayers.</p> <p>The goal [...]</p>