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Committee amends HB1168 to cut required levy from 60 to 50 mills across property classes

February 17, 2025 | 2025 Legislature NC, North Carolina


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Committee amends HB1168 to cut required levy from 60 to 50 mills across property classes
Representative Craig Hedlund, chairman of the House Finance and Tax Committee, told members the committee amended House Bill 1168 to provide a 10-mill reduction “across all classes of property.”

The change reduces the statutory required levy from 60 mills to 50 mills. Committee discussion and a subsequent amendment focused on how the buy-down would be funded and on limits for future mill increases by local political subdivisions.

Committee sponsor Representative Louser described the bill’s structure and a related amendment (7,001) that would identify specific funding sources. “The funding source deliberately was left open on this bill,” Louser said, and he told members he had discussed a funding approach with the governor and placed that language in the emailed amendment.

The committee clarified how the bill treats local taxing authorities. Representative Louser said other political subdivisions (counties, cities, townships and similar local units) would face a 3% cap on the portion of their budgets collected through property tax, and that increase would require a supermajority to exceed the cap; that rule would carry forward for five years for most subdivisions. Schools were discussed as an exception: the committee left existing school-related levies and authorities in place and did not apply the 3% cap to the portion of school funding that triggers transition minimums. Louser summarized: the measure “would take the required mills that we levy from 60 down to 50 and all the other political subs are at 3 percent cap on the portion of their budgets that they collect in property tax.”

Committee members asked several implementation questions. Members sought clarification on whether school districts could place ballot measures to raise mill levies and whether the bill altered timing or vote requirements for those elections; Louser and Hedlund said the bill does not remove districts’ ability to place questions on ballots but would require a supermajority for additional mill levy authority under the new cap rules. Members also asked about carryforward provisions for partial increases; Louser said the bill includes a one‑year carryforward for unused capacity under the 3% cap.

Representative Louser moved amendment 7,001 to House Bill 1168, which he said added the committee’s suggested funding language; Representative Pyle seconded the motion. The amendment was approved by committee and the transcript records the chair’s statement that the amendment passed.

Committee leaders said they would distribute printed copies of the amended bill for the whole committee and would return to further discussion at a later meeting.

Ending: The committee did not take final action on the bill at this session; members said the measure and its amendments will be revisited in later meetings once printed copies and fiscal details are distributed.

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