Competing desires of North Carolina property owners and county tax collectors are coming to a head at the state capitol, where lawmakers say they want to try to insulate taxpayers from rising property costs.
The North Carolina state Senate on Tuesday voted 36-9 to give initial approval to Senate Bill 889, which would block most county governments from implementing new property taxes based on appraisals from this calendar year.
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Local officials have expressed concern about legislation that limits their ability to generate revenue when the state’s population — and its needs — are growing, and as the cost of goods and services rises. Legislators heeded the concerns of some counties Tuesday by passing a last-minute amendment that exempts Clay, Chowan and Pamlico counties from the bill.
“These smaller counties face a relatively higher financial burden during the reappraisal process, and this change will allow them to continue their reappraisal year as planned,” said Sen. Kevin Corbin, a Republican whose district includes Clay County.
If approved later by the House of Representatives and Gov. Josh Stein, the legislation could affect nine other counties scheduled to reappraise properties this year — including Guilford and Harnett counties.
Senate leader Phil Berger, the lead bill sponsor whose district includes Guilford County, said he hopes lawmakers enact the bill before county leaders set their property taxes for the fiscal year that starts in July.
“In the counties that are affected by the moratorium, there are significant discrepancies in terms of who is facing the burden of higher property tax payments. In many instances, the folks that are getting hit the hardest are folks at the lower end of the income scale, folks that are on fixed income,” said Berger, a Rockingham County Republican.
The bill is part of a broader push by legislators in the Republican-controlled General Assembly to address affordability for North Carolinians ahead of the midterm elections. Republicans in the House of Representatives are pursuing a constitutional amendment that, if approved by voters in November, would give the state more control over how North Carolina counties and municipalities raise property taxes.
House Minority Leader Rep. Robert Reives, D-Chatham, has called the proposed amendment a “political stunt” to punish municipalities for using property taxes to fill budget holes created by lapses in state funding. Senate Minority Leader Sydney Batch, D-Wake, on Tuesday criticized Berger’s proposal for not delivering long-term property tax relief.
Senate Democrats proposed an amendment to Berger’s bill that would have lowered the state’s income threshold to qualify for property tax exceptions. “Our amendments would have actually delivered results for people immediately, instead of just pausing things and kicking the can down the road.”
State lawmakers are considering bills that limit local government power at the same time county governments across North Carolina are crafting spending plans for the new fiscal year that starts in July — plans local leaders say are hampered by funding shortfalls from the state and federal governments.
Wake County leaders, for instance, are considering a 2-cent property tax increase that they say could be avoided with additional state funding. Legislators failed to pass a comprehensive spending plan for the current fiscal year. Wake is currently spending $600 million to fill budgetary holes left by the state, according to County Manager David Ellis.
“If the state did its part, we could’ve lowered the property tax rate by 19 cents. That would have saved the owner of a $450,000 home almost $900,” Ellis said in his budget message.
State Rep. Erin Pare, R-Wake, said county leaders often seek out scapegoats when they choose to raise property taxes.
“The people of Wake County are not unaccustomed to seeing their tax bill rise,” she said. “And it seems like every time that happens, there is someone else that the county is blaming for them approving these property tax increases. So I think the county needs to focus more on fiscal discipline, look at their spending, and be accountable to the taxpayer.”
Wake County completed its most recent revaluation in 2024 and isn’t planning for another one until 2027. Durham County conducted its latest revelation in 2025 and its next is scheduled for 2029. Orange County’s next revaluation is set for 2029, while Cumberland County’s is eyeing another in 2033.
The bulk of local government spending goes to public safety, schools and health programs — and a significant percentage of that money comes from property taxes.
At the same time, home prices rose in all 71 counties that implemented property revaluations in the past three years, according to the North Carolina Association of County Commissioners. While each of those counties lowered their property tax rates, many property owners still ended up paying more in taxes because their county didn’t keep the rates revenue-neutral, Kevin Leonard, the head of the association, told lawmakers this year.
Leonard told WRAL Tuesday that the association doesn’t oppose the bill, but appreciates the exemptions granted to Clay, Chowan and Pamlico counties.
“Given the complexity of this issue, there is some wisdom in hitting the pause button,” Leonard said in a statement.
“While we are not opposed to this proposal, it could create challenges for counties currently undergoing revaluation. A moratorium would allow more time to fully assess the potential impacts of property tax reform and create space for more targeted relief for those who are struggling to pay their property taxes,” Leonard said.
Waiting for the state
The legislature’s failure to pass a new budget means North Carolina is still operating off the 2024 budget, with $31.7 billion in annual spending. In the same period the population has exploded — no other state added more people between 2024 and 2025 according to U.S. Census data — which means the $31.7 billion doesn’t stretch as far as it did two years ago.
On Tuesday the Wake County Public Schools System is expected to recommend cutting some jobs or class offerings in order to pay for rising costs of salaries, insurance and other needs. Wake County commissioners are contemplating a bond referendum for the ballot this fall, asking voters to approve potentially more tax hikes in order to fund $800 million more per year toward local education costs.
It’s not just schools. Wiley Nickel, the incoming Wake County District Attorney, is calling on Wake County Commissioners to pay for him to hire 11 new staffers, and to give all his staffers a $2,000 raise. The state is responsible for paying prosecutors, not the county, but Nickel said the state has left Wake County severely understaffed.
“It’s a public safety issue,” Nickel wrote in a statement. “Victims have to wait years rather than months for justice, cases are backlogged, and repeat offenders stay out on the streets much longer.
Advocates have been flooding into the General Assembly in recent weeks to ask lawmakers for more funding for their own interests. On Tuesday, for example, women who advocate for victims of rape or domestic violence held a press conference calling for a return to the level of state support the used to receive years ago. Cuts in recent years have led centers and clinics to lay off staff or shut down entirely, they said.
Berger said Tuesday that negotiations with House leaders are ongoing, but declined to offer specifics about the talks. “We still are having conversations. I'm hopeful that we'll have an announcement. I don't know exactly when, but the sooner the better,” he said.
WRAL state government reporter Caroline Yaffa contributed.