North Carolina voters approve 62% income tax cap and photo ID mandates

North Carolina voters approved three constitutional amendments on Tuesday, with unofficial results from the State Board of Elections showing strong support for limiting state tax rates and expanding photo ID requirements.

The most decisive vote concerned the state income tax. Nearly 62 percent of voters agreed to cap the state income tax rate at 3.5 percent. This new limit is stricter than the 7 percent cap approved by more than 57 percent of voters in 2018. Proponents argue that low rates attract businesses and force spending discipline, while critics warn the cap limits the state's ability to respond to recessions or natural disasters. Income taxes currently fund about half of the state general fund, which supports public schools and health services.

Voters also approved a property tax limit amendment by a margin of about 60 percent. This change requires the General Assembly to limit local property tax increases. The amendment does not set a specific cap; lawmakers must determine that number later. Current law limits rates to 1.50 dollars per 100 dollars of appraised value, with county rates ranging from 22.2 cents to 93 cents. The NC Budget & Tax Center noted that property taxes generated half of county budgets and nearly a quarter of municipal budgets this year. Critics argue the limit could force local governments to raise other fees to fund schools and public safety.

In the third measure, almost 60 percent of voters supported cementing a photo ID requirement for all voters, not just those voting in person. This expands on a 2018 amendment that applied only to in-person ballots, which did not take effect until 2023 due to legal challenges. Supporters view the ID requirement as a tool to prevent fraud, while opponents argue it places a heavier burden on poor and minority voters.

These victories align with priorities of Republican lawmakers who have controlled the General Assembly since 2011. Passing a constitutional amendment requires approval from three-fifths of lawmakers and a majority of voters. Once ratified, the changes will be difficult for future legislatures to reverse.