Stein signs bill delaying new property tax valuations

Gov. Josh Stein signed two bills into law Friday, including one that would delay the use of new property tax valuations in counties that conducted 2026 reappraisals.

Under Senate Bill 889, Property Tax Reappraisal Moratorium, counties that conducted property revaluations this year would be required to ignore their newly updated property valuations for the 2026-27 fiscal year and instead continue using values from their previous reappraisal. Beginning in the 2027-28 fiscal year, counties would then adopt the 2026 reappraisal values and continue using them until their next scheduled reappraisal cycle.

“The cost of living is too high,” the governor said in a press release. “This law provides tax relief for North Carolinians who are feeling pain in their pocketbooks. But the law helps residents in only a few counties, and it is not our most effective method of lowering costs. We must make life more affordable, which is why I’m pushing to cut taxes for working and middle-class families and lower housing, electricity, child care, and health care costs.”

But, Stein, a Democrat, did say he also had concerns about the law.

“I am concerned about this law’s impact on Hurricane Helene recovery in Buncombe County,” he said. “Senate Bill 474 would shield Buncombe County and other jurisdictions recovering from the storm, and I urge the Senate to pass it.”

SB 474 is currently in the Senate Rules Committee.

“Residents across North Carolina are seeing their property values skyrocket after revaluations, and it’s imperative that the General Assembly take a thoughtful approach to address property tax concerns,” Senate Leader Phil Berger, R-Rockhingham, said in a statement in April. “This approach gives residents some certainty on their tax bills while allowing policymakers ample time to put forward proposals to rein in property tax increases.”

Backed in the House by Reps. John Blust, R-Guilford; and Alan Branson, R-Guilford, the measure comes as Guilford County residents are seeing significant increases in assessed property values following the county’s latest revaluation. Those higher valuations could translate into larger tax bills, depending on the rates adopted by local officials.

“Guilford County’s revaluation numbers make it clear that lower- and middle-income families will be hit the hardest by rising property taxes at a time when many are barely able to make ends meet,” Blust said. “If property taxes increase to the point where people can no longer afford their homes, then we have a serious problem. This moratorium gives Guilford homeowners breathing room so families aren’t taxed out of their own communities.”

During debate on the floor, several Democrats spoke in opposition to the legislation.

“I strongly believe that this bill is shortsighted to attempt to ease short-term financial pain,” said Rep. Tracy Clark, D-Guilford. “It will cause catastrophic trickle-down effects to all of the vital services uplifting Guilford County, from our schools to our public safety and beyond.”

Clark suggested that the legislation would cost Guildford County Schools $58 million in the upcoming fiscal year.

Under current law, counties must reappraise all real property at least once every eight years, though counties may choose to conduct reappraisals more frequently. 

Nine counties with reappraisals scheduled to take effect Jan. 1, 2026, would fall under the bill.

Stein also signed House Bill 1123, UNC Omnibus & Capital Contracting Law Changes into law.

“This bill will help meet the capital needs of institutions in the University of North Carolina system,” he said in the release.

“Stein signs bill delaying new property tax valuations” was originally published on www.carolinajournal.com.