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Proposed Constitutional Amendment on Seven Percent Cap on Income Tax Rate

There are several proposed amendments to the North Carolina Constitution that will appear on the November 2018 ballot.

The Senate Bill 75 ballot will read as follows:

[  ] FOR [  ] AGAINST

Constitutional amendment to reduce the income tax rate in North Carolina to a maximum allowable rate of seven percent (7%).

The Income Tax Constitution Amendment, if passed, would reduce the cap on income tax from 10% to 7% beginning on tax year January 1, 2019 and thereafter.

The argument for this amendment is obvious: absent another change to the Constitution, North Carolina state income taxes will never exceed 7%.

The arguments against this amendment is there might be a scenario in which the state needs to raise taxes or face a shortfall. The other alternative in the event of an emergency would be to increase the sales tax, which is a regressive tax. Also, there is no pressing reason to put this limitation in the Constitution.

The full text of Senate Bill 75 and the North Carolina Constitution are available on the Legislature’s website.

Six Constitutional Amendments will be on the ballot in November. They are:

1. Right to Hunt, Fish, and Harvest Wildlife (Senate Bill 677)

2. Selection of Judicial Vacancies (Senate Bill 814)

3. Bipartisan State Board of Ethics and Elections Enforcement (House Bill 913)

4. Rights of Victims of Crime (House Bill 551)

5. Seven Percent Cap on Income Tax Rate (Senate Bill 75)

6. Voter ID (House Bill 1092)

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