Shelby City Council passes resolution opposing property tax caps

By Chuck Thompson | The Shelby Independent

Video still from the livestream of the public City of Shelby Council Meeting on April 20.

While many residents across the state, county and local municipalities have felt the heavy hand of recent high property taxes, The City of Shelby passed a resolution opposing any official property tax reform that may come from the North Carolina General Assembly later this year.

At the beginning of the council meeting, a proclamation was made declaring April 12-18, 2026, as National Public 1 – 3 Safety Telecommunicators Week, honor the men and women who serve as Public Safety Telecommunicators in the City of Shelby. The council also declared April 13 and April 18 as Electric Lineworkers Appreciation days.

After a couple of rezoning requests, (see news story that will be published later this week) the council approved the minutes of the regular meeting of April 6, 2026.

The Council then moved on to a resolution opposing state legislation that limits local property tax authority and threatens core public services. City manager Justin Merritt presented the resolution to the council.

Merritt noted this resolution was at the request of city council. He stated on April 15, the House Select Committee on Property Tax Reduction and Reform did advance a proposed constitutional amendment that would direct the state legislature to oppose restrictions on property taxes or property tax levies.

Currently, the state legislature already has authority to impose property tax limitations on local government, such as City of Shelby. Merritt explained the proposed amendment would require the state to impose the restrictions, which he said is the actual concern. If approved, it would be placed on the general ballot for the public to vote on in November.

Merritt further explained to everyone that the city operates mostly on property tax revenue and police, fire and EMS would bare the brunt of any limitations on property taxes. This could not be verified, as it has not happened yet, however, each municipality decides on how they choose to allocate their funds every budget cycle. Merritt made this comment as a selling point to pass the resolution, stating, “That is why I am bringing this to you, certainly at your request, for your consideration.”

Mayor Stan Anthony said other local governments across the state are also opposing the potential restrictions on property taxes.

“This is being very strongly opposed by municipalities, and I think even some counties in the state,” stated Anthony.

Anthony also added comments, speaking directly to the residents, being critical of the General Assembly in their efforts to cap property taxes and limit local governance.

“Just to be clear to the public, this is basically a case of Raleigh pulling more power back to Raleigh and taking it away from our local city and county folks,” he said.

“They’ve been doing in increments for years,” added Council Member Violet Arth.

“And they’re not the ones responsible for taking care of the city,” stated Council Member Andrew Hopper.

(Read the resolution, and news story continued below...)

Arth made the motion to adopt the resolution with all voting unanimously.   

Read the resolution here below:

RESOLUTION NO. 28-2026

RESOLUTION OPPOSING STATE LEGISLATION

THAT LIMITS LOCAL PROPERTY TAX AUTHORITY AND

THREATENS CORE PUBLIC SERVICES

WHEREAS, the City of Shelby is committed to providing essential public services and

maintaining a high quality of life for its residents, including police protection, fire

protection, parks and recreation, street construction and maintenance, and community

amenities; and

WHEREAS, local governments in North Carolina rely primarily on property tax revenue as

their most stable and locally controlled funding source to provide essential services to

residents and businesses; and

WHEREAS, unlike enterprise services funded through user fees, general government

services rely almost entirely on property tax revenue, making them especially vulnerable to

any restrictions on that revenue source; and

WHEREAS, proposed legislation would impose limits on the growth of local property tax

revenues, including levy limits and requirements for voter approval to exceed those limits;

and

WHEREAS, such limitations would significantly restrict the ability of local governments to

maintain service levels, respond to growth, and plan responsibly for the future, particularly

in communities experiencing continued population increases; and

WHEREAS, public safety services, especially law enforcement and fire protection services,

represent one of the most critical and resource-intensive responsibilities of local

government, requiring consistent and predictable funding to ensure adequate staffing,

training, and response capabilities; and

WHEREAS, imposing rigid caps on property tax revenue would force local governments

into a reactive financial posture, resulting in delayed investments, reduced service levels,

and increased long-term costs to residents; and

WHEREAS, requiring voter referenda to exceed arbitrary revenue limits would introduce

uncertainty and delay into the funding of essential services that must be maintained

without interruption; and

WHEREAS, local elected officials are directly accountable to their residents and are best

positioned to make informed decisions regarding taxation and service levels based on

community needs.

NOW, THEREFORE, BE IT RESOLVED THAT:

1. The City of Shelby strongly opposes any state legislation that limits local property

tax authority, including levy limits, revenue caps, or mandatory voter referenda to

exceed such limits.

2. The City affirms that property tax flexibility is essential to funding core public

services, including law enforcement, fire protection services, street construction and

maintenance and parks and recreation, that directly impact residents’ daily lives.

3. The City urges the North Carolina General Assembly to reject any legislation that

would undermine the ability of municipalities to fund essential services.

4. The City further urges state leaders to recognize that limiting property tax revenues

will not reduce the need for services but will reduce the ability to provide them

effectively.

5. The City calls for the preservation of local control and accountability, allowing

locally elected officials to make responsible fiscal decisions based on the needs of

their communities.

6. The City Manager is directed to transmit this resolution to:

o Members of the North Carolina General Assembly representing Cleveland

County,

o Leadership of the North Carolina General Assembly,

o The North Carolina Association of County Commissioners, and

o The North Carolina League of Municipalities.

Adopted and Approved this 20th day of April, 2026.

The next City of Shelby public City Council meeting will be held on May 4, in council chambers.

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Chuck Thompson is a reporter and columnist for The Shelby Independent. 

The Shelby Independent.