Currently, local governments have the authority to adjust property taxes as needed.
"What we've seen in recent years is that some of these local governments have been using the property tax as a cash cow to allow them to enact huge spending increases that are beyond really people's ability to pay for them," said Mitch Kokai, a senior political analyst with the John Locke Foundation, citing a study from the nonprofit think tank.
Kokai said the proposal would not eliminate future tax increases but would cap how much they can rise over time.
"Over the course of a decade, the 10 largest counties collected $2.6 billion more in property tax than they would have if they had had a limit in place on the amount that they could increase year to year, similar to what the General Assembly has put in place for itself," he said.
However, some local leaders, including those in Wake County, warn the measure could hinder their ability to fund essential services.
"At the end of the day, those amenities and different things that they are used to here in the community, a lot of those things we're not going to be able to (fund)," said Don Mial, Chair of the Wake County Board of Commissioners.
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In Wake County, the budget is sourced from property taxes. Mial said it's the lone revenue stream the county can control, adding the amounts cover the gap in areas when state funding falls short.
"If (the state) stepped up, covered those items that state is responsible for, we could actually lower our taxes," Mial said.
Kokai said resistance from local governments was predictable.
"I think that obviously local governments aren't going to like this because they're going to want as much flexibility as they can to raise as much revenue as they can. But this is a case of the state government saying, look, we're hearing from our constituents that local governments, at least some of them, are way overspending," Kokai said.
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Under the proposed amendment, the General Assembly would determine the limit on property tax increases, though no specific cap is included in the measure itself.
"The vagueness of all of this is incredibly troubling. Voters need information in order to understand what the impacts are of the choices legislators make," said Alexandra Sirota, Executive Director of the NC Budget & Tax Center.
Critics say the proposal does not address broader affordability challenges.
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"A levy limit will not address the unaffordable housing costs that so many households are facing. What legislators need to do today is to invest in building more affordable housing and providing direct relief to households that are faced with unaffordable property tax bills," said Sirota.
House Speaker Destin Hall championed the measure.
"Property taxes are out of control, and some local governments are abusing their power by overtaxing and underdelivering for their constituents," Hall said. "It's time for real reform, and this constitutional amendment on levy limits will help stop runaway property tax hikes and protect North Carolina taxpayers."