What is the property tax cap?

The property tax cap in North Carolina is a limitation on the amount of property taxes a county, city, or town can charge without state approval. This cap, which is adjusted annually, is based on the amount of property taxes a county, city, or town raised in the previous fiscal year. The property tax cap in North Carolina is currently set at a maximum of 90 cents for each $100 of property value. This means that property taxes in North Carolina can be no more than $90 for every $10,000 of property value. When the property tax cap is reached, the county, city, or town must obtain state approval to levy additional taxes. In order to receive approval, the governing body must prove to the state that the additional taxes are necessary to meet the financial needs of the municipality. In addition, the local governing body must submit a budget showing how the additional funds would be used. The property tax cap in North Carolina was created to protect property owners from high tax bills and to ensure that local governments can only charge what they need to meet their public service needs. While the property tax cap may limit how much local governments can raise each year, it is important to ensure that public services are adequately funded.

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