Raleigh — The North Carolina Senate moved Tuesday to slam the brakes on a wave of 2026 property revaluations, advancing a plan that would keep this year’s new appraisal numbers off next year’s tax bills for homeowners in roughly a dozen counties. The initial approval comes just as counties start mailing out revaluation notices and local leaders scramble to lock in their budgets.
What Lawmakers Approved
The Senate voted 36-9 to give initial approval to Senate Bill 889, a proposal that would bar counties with new schedules of values taking effect Jan. 1, 2026 from using those updated valuations to calculate property tax bills for the 2026-27 fiscal year, according to WUNC. Supporters are pitching the pause as a way to prevent sudden tax shocks while the General Assembly weighs broader changes to the property tax system.
What’s In The Bill
An updated version of the measure, CBS17 reports, adds language aimed at protecting property owners’ appeal rights, allowing challenges tied to the 2026 reappraisals to be filed in both 2026 and 2027. Instead of using the new values right away, the bill would require affected counties to fall back on their prior schedule of values for the 2026-27 tax year, then implement the 2026 schedule for collections beginning in 2027. The legislation also tacks on a 20 dollar examination fee for certified county assessors.
Who Would Be Affected And The Price Tag
The measure targets counties that completed revaluations effective Jan. 1, 2026. The state’s fiscal analysis counts 12 such counties and warns of local impacts, and the Fiscal Research Division estimates about a 10 million dollar one-time reduction in local revenues tied to equalization rules for public-service property. The North Carolina Association of County Commissioners lists the roughly dozen counties affected and says the pause would force local officials to rework budget assumptions as they set tax rates for the coming year. (Fiscal Note; NCACC.)
Lawmakers’ Pitch And The Scale Of The Jump
Sen. Steve Jarvis, one of the bill’s backers, told reporters the revaluations have produced steep runups in market-based assessments. As a republished WNCN/CBS17 report put it, “We’ve seen an extensive increase in property values, in the double digits.” Senate leaders, speaking to WRAL, also argued the pause will protect low-income and fixed-income homeowners, and Senate leader Phil Berger said many of the households staring at higher bills are among those least able to absorb them.
Local reporting shows some reappraisals have produced eye-popping neighborhood spikes. In Guilford County, for example, averages of 40 to 50 percent and even higher spot increases have been reported, according to the Rhino Times.
Local Fallout And Legal Questions
Some counties are already testing the boundaries while they wait on Raleigh. Pender County briefly suspended use of its new values and extended appeal deadlines, a move that prompted state officials and legal experts to warn the county may have run afoul of the state’s Machinery Act, according to WECT. County officials say they are under intense pressure from residents and will push lawmakers for relief as budget season accelerates, and the NCACC is tracking multiple bills that could reshape how revaluations and local tax relief work.
What’s Next
SB 889 has cleared its first hurdle in the Senate and is positioned for a final vote in the chamber before any action shifts to the House. County groups and lawmakers are watching the calendar closely. The NCACC’s legislative brief notes that the bill moved quickly through committee and could be calendared for floor debate, which would set the pace for House consideration and any tweaks to the appeals or implementation language. (NCACC.)
What This Means For Your Tax Bill
A property tax bill comes down to two moving parts: the assessed value and the tax rate set by county and municipal elected officials. Even if a moratorium holds valuations in place for a year, counties could still adopt higher rates. Conversely, many will aim for a revenue-neutral rate to blunt the pain from rising values. For a deeper look at how assessments and rates trade off, see analysis from the Tax Foundation.
