Why It Matters
North Carolina lawmakers are moving to freeze scheduled property tax revaluations in a dozen counties as state officials weigh broader reforms to how local governments assess property values. The moratorium would affect homeowners in counties conducting revaluations this year and delay implementation of updated property values until 2027.
Senate Bill 889 advanced through the Senate Finance Committee on Wednesday and now heads to the Rules Committee. If enacted, the measure would give state legislators additional time to craft property tax reform proposals while providing taxpayers temporary relief from revaluation-driven tax increases.
What Happened
Senate Leader Phil Berger filed legislation to pause all proposed property value adjustments scheduled for 2026. The bill would apply to 12 North Carolina counties currently conducting revaluations: Anson, Bladen, Buncombe, Chowan, Clay, Davidson, Guilford, Harnett, Onslow, Pamlico, Pender, and Scotland.
Berger said the pause would allow the General Assembly to consider options for property tax reform. He has formed a committee of Republican senators to study the issue during the short session.
The measure does not prohibit local governments from raising tax rates. Counties would apply revaluations conducted in 2025 during the 2027 tax year instead. The revaluation appeal process would also extend to 2027.
By the Numbers
Twelve counties are conducting property revaluations this year that would ordinarily take effect in 2026. The moratorium would delay implementation by one year across all affected jurisdictions.
Counties typically conduct revaluations on multi-year cycles to align assessed values with current market prices. Rising property values have triggered higher tax bills even when local governments keep tax rates unchanged.
Lawmakers emphasized that taxpayers who received revaluation notices should file appeals promptly rather than wait for the extended 12-month appeal period.
Zoom Out
Property tax reform has emerged as a priority issue for North Carolina Republicans. House Speaker Destin Hall created a separate committee to study tax reform and is backing a proposal to amend the state constitution to give legislators authority to cap local property tax increases.
That proposal has drawn opposition from Democrats and local government groups who argue it would force municipalities and counties to cut services. State lawmakers in both chambers are navigating competing pressures to deliver taxpayer relief while preserving local government revenue streams.
Similar debates over property tax limits have played out in other states where rapid home price appreciation has driven assessment increases.
What’s Next
Senate Bill 889 moves to the Senate Rules Committee. If it clears that hurdle, the full Senate would vote on the moratorium before sending it to the House.
The Senate property tax working group plans to discuss reform policies during the short session. House leaders are pursuing a parallel track through their constitutional amendment proposal, setting up potential negotiations between the chambers on how to address rising property tax burdens.
County officials in affected jurisdictions are awaiting clarity on whether revaluations completed this year will be delayed or proceed on the original timeline.