NC Senate Finance Committee advances taxation transparency bill

On June 18, the Senate Finance Committee voted to pass “Truth in Taxation” (SB 992) with a favorable report and referral to the Senate Rules Committee. 

If passed, SB 992 would mandate citizens be notified if there is an increase in their property tax bill and would require public hearings, allowing citizens to have their voice heard and providing “greater transparency for county, town, and city budgets,” said Sen. Carl Ford, R-Rowan, a primary sponsor.

Ford introduced a technical amendment that transfers the burden from the county clerk to the clerk of the taxing entity. 

“This bill would provide local voters with more transparency when their local government is proposing to increase their property tax bills,” Brian Balfour, VP of research at the John Locke Foundation, told the Carolina Journal. “It would also require a majority vote to do so. However, it only applies to years in which a property reappraisal has occurred. The measures are a solid step toward avoiding sticker shock on property tax bills during reappraisal years, but these transparency measures should be applied for all years in order to give local property owners more information and more say over property tax hikes.”

Most people do not think about their property tax bill because it is included in their mortgage, which is drafted from their bank account, according to Ford. 

“I’ve had people tell me, ‘Well, we didn’t know we had a tax increase, we didn’t know there was a hearing,’” said Ford. “So, this is going to make sure everyone knows.” 

SB 992 seeks to provide greater transparency and accountability, giving taxpayers a clearer picture of how local tax and budget decisions are made, according to Sen. Buck Newton, R-Wilson, a primary sponsor. 

“It does not control what a county or a city does; it just makes them tell the public the truth about what’s going on,” said Newton.  

“SB 992 includes common sense reforms that increase transparency and accountability in the local government spending process,” Jason Melber, coalitions manager for the North Carolina chapter of Americans for Prosperity, told the committee. “North Carolinians deserve transparency and a voice in decisions that affect their homes, budgets, and futures.”

The bill puts local budgeting under the spotlight, increases accountability among officials, and ensures that fiscal policy best reflects the community’s needs, according to Melber. He pointed to Utah as an example of where such policies have proven effective, keeping property tax revenue “below the rise in property values” since 1985. Utah ranks No. 36 nationally for property tax burden.

“By requiring public notice and hearings, and greater transparency in the budgeting process, North Carolinians can have more trust that their tax dollars are being spent appropriately,” concluded Melber.

During public comment, Joy Hicks, director of advocacy and policy for the North Carolina Association of County Commissioners, thanked Ford for working with the association to alleviate some of the burden on county clerks. 

“We have a shared interest in transparency in our process,” said Hicks. “And in fact, when we put forward recommendations on property tax reform to you all this year, we had transparency measures included in that. We are ready to do this, so that we know that it is important for our citizens to understand what we do and why with the budget process when it comes to property tax.” 

“NC Senate Finance Committee advances taxation transparency bill” was originally published on www.carolinajournal.com.