State lawmakers are one step closer to enacting a law that would block county governments from implementing new property taxes based on appraisals conducted during this calendar year.
The North Carolina Senate on Wednesday voted to give final approval to Senate Bill 889, legislation filed by Senate leader Phil Berger. The Rockingham County Republican says North Carolinians need relief from property tax bills that are rising too dramatically. He has referred to the bill as a “moratorium” on the implementation of reappraisals. The third approval Wednesday followed two votes in favor of the bill on Tuesday.
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The measure now goes to the GOP-controlled House for consideration. If it becomes law, the legislation would affect nine counties scheduled to reappraise properties this year — including Guilford and Harnett counties.
Wake County completed its most recent revaluation in 2024 and isn’t planning for another revaluation 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. Cumberland County’s is eyeing another revaluation in 2033.
Berger said it’s a first step toward addressing property tax hikes that result as part of a reappraisal. Property owners in those counties are facing higher tax bills as a result of reappraisals that boosted the value of their homes.
“Those folks are looking at the possibility of huge tax bills without any improvements to their property at all,” Berger told reporters after the vote. Berger said his bill provides taxpayers a level of predictability while lawmakers consider other options for suppressing property tax hikes.
Other lawmakers have floated the idea of capping property tax increases on a percentage basis or on a gross dollar basis, Berger said, adding that it’s difficult to build a consensus around a singular idea that can pass through both chambers of the legislature: “Those things just don't happen overnight,” he said.
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. The approval comes as 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.
Legislators heeded the concerns of some counties Tuesday by passing a last-minute amendment that exempts Clay, Chowan and Pamlico counties from the bill. Sen. Kevin Corbin, a Republican whose district includes Clay County, said the counties “face a relatively higher financial burden during the reappraisal process” than other counties.
Berger’s bill is part of a broader push by state lawmakers to address affordability for North Carolinians ahead of the midterm elections.
House Republicans are pursuing a constitutional amendment that would give the state more control over how North Carolina counties and municipalities raise property taxes. If that proposal is approved by the legislature, it would go before voters in November.
House Minority Leader Robert Reives, D-Chatham, has called the proposed amendment a “political stunt” designed 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. Local governments have also seen declines in federal funding.
Senate Democrats proposed an amendment to Berger’s bill that would have lowered the state’s income threshold to qualify for property tax exemptions. “Our amendments would have actually delivered results for people immediately, instead of just pausing things and kicking the can down the road,” Batch said.
The North Carolina Association of County Commissioners told WRAL Tuesday that the association doesn’t oppose the bill, but it 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,” Kevin Leonard, the association’s director, said in a statement.
“While we are not opposed to this proposal, it could create challenges for counties currently undergoing revaluation,” Leonard said. “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.”