Summary of Bill: SB 889 (North Carolina Senate, 2025 Session)
Short Title: Property Tax Reappraisal Moratorium
Sponsors: Senators Berger (primary), Jackson, and Jarvis (co-sponsors)
Purpose
- The bill imposes a temporary moratorium on using certain reappraisal-based schedules of values for property tax assessments in counties where a real property reappraisal became effective on January 1, 2026.
- It requires counties to revert to the previously adopted schedule of values for specific tax years and to resume use of the reappraisal schedule only after a future general reappraisal is completed.
Key Provisions
1) 2026 Tax Year – Temporary Reversion to Previous Schedule
- For the tax year beginning July 1, 2026, counties where a January 1, 2026 reappraisal became effective must not use the new schedule of values created by the 2026 reappraisal.
- Instead, these counties must use the schedule of values adopted by the board of county commissioners from the county’s most recent reappraisal that was effective before January 1, 2026.
2) 2027 and Future Tax Years – Continued Use of Prior Schedule Until Next General Reappraisal
- For the tax year beginning July 1, 2027, counties with the January 1, 2026 reappraisal must continue using the January 1, 2026 schedule of values until a new schedule is adopted pursuant to a future general reappraisal under G.S. 105-286.
- This creates an interim period during which property values are not updated by the 2026 reappraisal.
3) Base Year Calculation
- The bill defines the county’s most recent reappraisal as of January 1, 2027 for purposes of calculating when the county must conduct its next general reappraisal.
4) Property Tax Appeals
- Taxpayers may appeal the listing or appraisal of real property in 2027 under Subchapter II of Chapter 105, even though the 2026 reappraisal schedule is being used, effectively allowing appeals during the 2027 calendar year for properties appraised as of January 1, 2026.
5) County Assessor Provisions (G.S. 105-294)
- The bill clarifies and updates provisions related to the office of the county assessor, including:
- A new or continued requirement for a $20 examination fee paid to the Department of Revenue for the comprehensive examination required for assessor appointments.
- Fees to fund examination costs.
- Continuing education requirements: assessors must complete at least 30 hours of appraisal/assessment instruction every 24 months.
- Compensation determined by the county board of commissioners.
- Clarification that the Office of County Assessor may be held concurrently with other offices.
Effective Dates and Timeline
- Section 1 (2026 Tax Year): Effective for the 2026 tax year; counties must revert to the prior schedule of values.
- Section 1 (2027 and future tax years): Effective for the 2027 tax year; continue using the 2026 schedule until a future general reappraisal occurs.
- Section 1(c): Establishes the deemed base year for calculating timing of the next general reappraisal as January 1, 2027.
- Section 1(d): Allows 2027 property tax appeals despite the schedule moratorium.
- Section 2 (G.S. 105-294 changes): Becomes effective October 1, 2026; applies to examinations conducted on or after that date.
- Section 3: Remaining provisions become law when the act becomes law.
Potential Impact
- Taxpayers in counties subject to the 2026 reappraisal would see stability in assessed values for 2026 and 2027 (i.e., use of a prior schedule rather than the 2026 reappraisal values).
- The 2027 appeals window remains open to challenge assessments despite the interim valuation method.
- Counties would need to align their budgeting and tax collections to the interim schedule and plan for a future general reappraisal.
- Enhanced professional requirements for county assessors, including a mandatory examination fee and continuing education, with funding support via examination fees.
- The bill could affect funding and workload for the Department of Revenue related to assessor examinations.
