The deal also affirms scheduled income-tax cuts, continuing a step-down of the personal income tax rate into the 2030s.

WRAL News (Doran, Specht & Hagel) 5/13/26

TWO MAJOR PROPERTY‑TAX BILLS MOVE FORWARD IN HOUSE

Lawmakers advanced two major proposals: a constitutional amendment to limit how much cities and counties can raise property taxes each year, and a separate bill tightening rules for nonprofit property‑tax exemptions. The House Finance Committee approved both measures, sending them to the House Rules Committee for further consideration.

House Bill 1089 is a proposed constitutional amendment that would require the General Assembly to set limits on annual local property tax levy increases. The bill itself does not establish a specific cap; instead, it would place the question before voters, likely in November, asking whether the constitution should require such limits. Supporters argue that rising property taxes burden homeowners and that local governments have increased spending beyond what inflation and population growth justify. Opponents warn that restricting tax growth could force cuts to essential services such as education, public safety, and public health.

House Bill 1042, discussed in the same committee meeting, focuses on narrowing nonprofit property‑tax exemptions. Lawmakers say some developers have used nonprofit structures to avoid taxes while providing only minimal affordable housing. The bill would tighten eligibility rules to ensure that exemptions serve a genuine charitable purpose. This measure received bipartisan support.

WRAL News (Specht) 5/12/26
 

SENATORS RENEW FIGHT OVER CON LAWS

North Carolina lawmakers are renewing a major push to roll back parts of the state’s certificate‑of‑need (CON) laws, arguing that reducing these regulations would increase competition, lower health‑care costs, and curb rising taxpayer spending on Medicaid and the State Health Plan. The effort is driven in part by concerns that hospital consolidation— highlighted by the proposed WakeMed–Atrium partnership—will further raise prices for privately insured patients, a trend supported by academic research on hospital mergers.

Senate Bill 1040, sponsored by several Republican senators including Majority Leader Michael Lee, would eliminate CON requirements specifically for ambulatory surgical centers and inpatient rehabilitation facilities beginning in July 2026. Supporters say shifting more surgeries out of hospitals would avoid high facility fees that drive up state and private insurance costs. The bill also directs the Department of Health and Human

Services to develop a plan for phasing out the rest of the CON system within three years, signaling a broader move toward dismantling the regulatory framework.

Hospitals strongly oppose the proposal, arguing that recent CON changes tied to Medicaid expansion are too new to evaluate and that further rollbacks could destabilize access to care, especially in rural areas. They warn that removing CON oversight risks unnecessary duplication of services and financial strain on hospitals. The debate is unfolding alongside a pending legal challenge after the state Supreme Court ordered a trial on whether the CON system is unconstitutional, adding pressure to lawmakers’ push for reform.

The bill was heard in the Senate Health Care Committee on Wednesday and was re‑referred to the Senate Appropriations/Base Budget Committee.

NC Political News (Staff) 5/10/26
WRAL News (Doran) 5/13/26
 

NC BILL OFFERS TAX BREAK ON PRESCRIPTION DRUGS

A North Carolina House bill, House Bill 1074, would let residents deduct up to $5,000 in unreimbursed prescription drug expenses from their state taxable income starting in 2026. The measure, which has bipartisan support, covers out‑of‑pocket costs for prescribed medications and pharmacy cost‑sharing that are not reimbursed or paid through tax‑favored accounts like HSAs or FSAs. Supporters argue it would offer direct financial relief to roughly 400,000 people and return about $80 million to taxpayers. Critics warn that targeted deductions complicate the tax code and prefer broader tax relief. The bill is part of a wider legislative push to address rising health‑care costs, including proposals on prior authorization, hospital billing transparency, pharmacy benefit managers, and scope‑of‑practice rules. It has passed the House Health Committee and is moving through additional committees before reaching the House floor.

The Carolina Journal (Pomeranz) 5/13/26
 

LAWMAKERS BACK OVERSIGHT OF DATA CENTERS

North Carolina lawmakers are advancing several bills aimed at tightening oversight of the state’s rapidly expanding data-center industry, which has grown quickly due to rising demand for cloud computing and AI. Legislators are increasingly concerned about the strain these facilities place on the power grid, water supplies, and local infrastructure — and about the hundreds of millions of dollars in tax breaks the industry currently receives.

According to the NC Department of Commerce, data centers now receive roughly $50 million per year in sales- and use-tax exemptions, a number that could climb to $450 million annually if all proposed projects are built. Governor Josh Stein has urged lawmakers to revisit these incentives, warning that the industry’s massive electricity needs could shift costs onto ratepayers.

A major Democratic proposal, House Bill 1063, would repeal existing tax exemptions and require companies to disclose projected electricity and water usage to state regulators and local governments. Supporters argue that data-center operators should pay their fair share and that communities need consistent rules as development accelerates.

Senate Bill 844, introduced by Senate Democrats, takes a similar approach but focuses more directly on consumer protection and utility oversight. The bill would require the Utilities Commission to study the long-term impact of data-center growth on electricity demand, grid reliability, and customer bills. It also directs regulators to examine whether data-center operators should pay higher rates or infrastructure fees to prevent costs from being shifted onto households and small businesses. Lawmakers backing Senate Bill 844 say the state needs a clearer understanding of how the industry affects energy planning before granting further incentives.

Republican leaders have also signaled openness to reexamining the tax breaks, noting that data centers have become so common they may no longer need special incentives. Meanwhile, local governments across the state have enacted temporary moratoriums on new data-center projects as they assess the strain on infrastructure and utilities.

Together, the bills reflect a growing bipartisan recognition that North Carolina’s data-center boom — while economically significant — requires stronger guardrails to protect consumers, local governments, and the state’s long-term energy system.

NC Newsline (Zhu) 5/8/26
 

NC LAWMAKERS TARGET FOREIGN OWNERSHIP NEAR BASES

North Carolina lawmakers are advancing a revised proposal that would bar “adversarial” foreign governments from purchasing farmland located within 50 miles of military bases and National Guard facilities. The updated bill, an overhaul of House Bill 133, ties the definition of adversarial nations to the federal International Traffic in Arms Regulations list, which includes countries such as Afghanistan, Iraq, Russia, China, Iran, North Korea, and Venezuela.

The measure is a compromise between earlier versions that proposed either a 75‑mile or 25‑mile restriction. Lawmakers settled on 50 miles and added National Guard sites to the protected areas. Supporters say the federal list avoids the need to constantly update the legislation, while critics — including some Senate Democrats — worry about unintended consequences for immigrant communities and question whether the 50‑mile radius is unnecessarily large compared to other states’ laws.

The bill removes language that could affect individuals and focuses instead on state‑controlled enterprises and foreign governments. Lawmakers say this change was made to avoid harming residents who have immigrated from countries on the federal list. The previous version passed the House unanimously but stalled in the Senate; the new version aims to address those concerns.

NC Newsline (Zhu) 5/12/26

Cancer advocates, survivors, and physicians filled the North Carolina General Assembly this week to push lawmakers to act on House Bill 567 (Ensure Access to Biomarker Testing), a bipartisan proposal that would expand insurance coverage for biomarker testing, a tool that helps doctors match patients with targeted cancer treatments. The American Cancer Society Cancer Action Network organized the advocacy day, pressing Senate leaders to schedule a vote after the bill stalled in the Rules Committee.

The bill would require private insurers, Medicaid, and the State Health Plan to cover medically supported biomarker tests used for diagnosis, treatment planning, and monitoring. Legislative analyses show the bill defines biomarker testing, sets evidence-based coverage standards, and prohibits insurers from raising premiums or denying coverage based on biomarker information. The coverage mandate would take effect for insurance plans issued or renewed on or after October 1, 2025.

At the Capitol, cancer survivors shared personal stories illustrating how biomarker testing led to life-changing targeted therapies — including a Winston-Salem patient who said gene-targeted treatment “changed [his] life” and a mother whose child’s biomarker results shaped lifesaving leukemia treatment. Advocates argue the bill would reduce unnecessary chemotherapy, improve outcomes, and lower long-term costs by helping patients get the right treatment sooner. Supporters say they will continue lobbying until the Senate takes action this session.

ABC 11 News (Coffey) 5/12/26
Hoodline (Wren) 5/13/26
 

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