Canton has entered the growing statewide fight over property tax limits, with town officials adopting a resolution opposing legislation that would restrict how local governments fund the bulk of their operations.
“I think it’s in line with what is happening across the state — the possibility of what the General Assembly will do and what effect that will have on our already strained budgets,” said Canton Mayor Zeb Smathers.
“Whether it be Hurricane Helene or general affordability, our ability to do more with less is becoming more challenging by the day. I understand the desire for new tax policy, but these changes will have real world consequences for every local government in NC.”
The move places the town squarely in a broader debate unfolding in Raleigh, where lawmakers are considering proposals to cap property tax growth or require voter approval before local governments can exceed those limits.
Throughout early 2026, the House Select Committee on Property Tax Reduction and Reform met repeatedly to discuss state preemption of local taxation authority. On April 15, the committee cleared a constitutional rate cap proposal to the General Assembly. The measure would be put to voters statewide in November if it passes.
For Canton and other local governments, the issue is less about taxation itself and more about preserving the authority to manage its own finances.
Property taxes serve as the primary funding source for local government operations across North Carolina, supporting essential services that range from public safety to street maintenance and community amenities.
Unlike enterprise funds sustained through user fees, general government services depend heavily on this single revenue stream, leaving municipalities vulnerable to state-imposed constraints.
Canton’s resolution outlines that vulnerability, warning that limits on property tax revenue would restrict the town’s ability to maintain service levels, respond to growth and plan for the future. The resolution emphasizes that such constraints would come at a time when many communities are already facing rising costs and increasing demand for services.
Concerns about public safety also feature prominently in the town’s position. Law enforcement and emergency response functions are among the most resource-intensive responsibilities local governments carry, requiring consistent funding for staffing, training and operations. Any disruption to that funding could have immediate, disastrous consequences for service delivery.
The resolution also takes aim at the structure of the proposed limits, particularly provisions that would require voter referenda to exceed set caps. The resolution contends that such requirements would introduce delays and uncertainty into the budgeting process, complicating efforts to fund services that must operate without interruption.
Canton’s argument extends beyond day-to-day operations into long-term financial planning. The document warns that rigid caps could force local governments into reactive decision-making, delaying investments in infrastructure and other needs while driving up costs over time.
Underlying the resolution is a broader assertion about governance. Canton officials argue that local elected leaders are directly accountable to their residents and are best positioned to make informed decisions about taxation and service levels. State-imposed limits, they say, would weaken that accountability by shifting key decisions away from the local level.
The resolution makes that point explicitly, calling for the preservation of local control and warning that limiting revenue will not reduce the need for services, only the ability to provide them effectively.
Canton also took the additional step of directing that the resolution be shared with members of the General Assembly, legislative leadership and statewide organizations that represent local governments. That outreach signals an effort to influence the conversation as lawmakers weigh potential changes.
For now, the resolution serves as a formal statement of opposition, adding Canton’s voice to a growing list of communities wary of losing control over their primary source of revenue. Whether that message resonates in Raleigh will determine how much authority local governments retain in shaping their own financial future.
Those concerns echo themes already raised by local officials in Haywood County, who have pointed to mounting financial pressures tied to Hurricane Helene recovery efforts, personnel costs and continued growth in passing their own resolution on April 20. In that environment, flexibility in setting tax rates has become a key tool for balancing competing demands.
Cherokee County commissioners passed a similar resolution that same day. More local governments are expected to take up the matter as momentum builds; in a recent story by The News & Observer, outgoing Senate President Phil Berger (R-Rockingham) said he believes the legislation could pass by mid-May.