WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · SB 992

Summary of North Carolina Senate Bill 992 (2025) – Truth in Taxation

Purpose and Intent

  • Establishes procedures that governing bodies must follow when a taxing jurisdiction intends to set a property tax rate that exceeds the revenue-neutral rate in years in which a general property reappraisal is conducted.
  • Also includes a separate provision increasing the late filing fee for reinstating expired Real Estate Appraiser trainee registrations, licenses, or certificates.

Key Provisions

Section 1: Truth in Taxation (Property Taxation)

  • Applicability: Applies in years when a general reappraisal of real property is conducted.
  • Adoption of Higher Tax Rate Prohibited Without Action: A taxing jurisdiction may not adopt a property tax rate above the revenue-neutral rate (as determined under G.S. 159-11(e)) unless the governing body approves a resolution or ordinance to do so.
  • Notice and Public Involvement:
    • General Notice of Intent:
    • Publish in a newspaper of general circulation at least 1 week before the required public hearing.
    • Publish on the governing body’s website at least 10 days before the hearing.
    • Specific Notice of Intent:
    • At least 30 days before the public hearing, the county clerk must notify each taxpayer by mail (or electronically if consented) of the intent to exceed the revenue-neutral rate, including summarized tax-relevant information.
    • The taxing unit must cover the mailing costs.
    • The county clerk consolidates notices for all applicable taxing units tied to the taxpayer’s property into one notice and sends to the taxpayer at last known address (with optional electronic delivery if consented).
    • The notice must include:
      • Proposed property tax revenue needed to balance the budget.
      • Revenue-neutral rate (G.S. 159-11(e)).
      • Proposed tax rate for the upcoming year.
      • Current year tax payment amount.
      • Estimated taxes due for upcoming year under revenue-neutral rate.
      • Estimated taxes due for upcoming year under the proposed rate.
      • Date, time, and location of the public hearing.
  • Public Hearing:
    • A public hearing must be held to discuss exceeding the revenue-neutral rate.
    • If held with the hearing required under another statute (G.S. 159-12), time must be carved out to allow public input on this specific issue.
  • Majority Approval Required:
    • The governing body must vote on exceeding the revenue-neutral rate at the hearing.
    • Adoption of a resolution or ordinance to exceed the revenue-neutral rate must occur by majority vote prior to adopting the budget ordinance.

  • Refund Obligation:

    • If a governing body fails to comply with the section, it must refund any amount of property taxes collected in excess of what would have been collected under the revenue-neutral rate.

  • Effective Date:

    • This section becomes law and applies to budget ordinances for fiscal years beginning on or after July 1, 2027.

Section 1(c): Effective Date Clarification

  • Overall effective date aligns with the above for the Truth in Taxation provisions.

Section 2: Appraiser Trainee Fee Provisions

  • Amendment to Late Fees (G.S. 93E-1-7(c)):
    • The late filing fee for reinstated trainee registrations, licenses, or certificates increases from $10 to $12 per month (or part thereof), up to a maximum of $120.
    • This late fee is added on top of the renewal fee.
    • If reinstatement is not completed within 12 months after expiration, the board may treat the person as if they never held a prior registration/licensure, subject to original issuance requirements (including possible rehiring of examinations).
    • Reinstatement applications for those expired 12+ months may require the original issuance fee for a new registration/licensing certificate.
  • Effective Date: July 1, 2026, applying to reinstatements on or after that date.

Who/What Would Be Affected

  • Taxing Jurisdictions and Taxpayers:
    • Governing bodies of counties, municipalities, and other taxing districts in years of general property reappraisal.
    • Property owners would receive enhanced notice detailing the impact of a proposed tax rate above the revenue-neutral rate.
    • Taxpayers have a clearer, mandated process and opportunity to participate in decisions about higher tax rates.
  • Local Governments:
    • Must adhere to a formal process (notice, hearing, majority vote) before exceeding the revenue-neutral tax rate.
  • Real Estate Appraiser Trainees/Licensees/Certificates:
    • Renewal and reinstatement processes are adjusted with higher late fees and potential implications for reinstatement after 12 months.

Procedural and Timeline Highlights

  • Notice and Hearing Timeline:
    • General notice: at least 1 week before the public hearing; website notice at least 10 days prior.
    • Specific notice to taxpayers: at least 30 days before the public hearing.
    • Taxpayer notice delivery: by mail (or electronic if consented) to last known address, at least 10 days before hearing.
  • Adoption Timing: The vote to exceed the revenue-neutral rate must occur at the hearing and by majority vote before the budget ordinance is adopted.
  • Refund Provision: If noncompliance occurs, refunds of excess taxes must be issued.
  • Effective Dates:
    • Truth in Taxation provisions apply to fiscal years starting on/after July 1, 2027.
    • Appraiser late-fee changes apply to reinstatement actions on or after July 1, 2026.

Summary

SB 992 establishes a formal framework for "truth in taxation" during general property reappraisals, requiring explicit notice, thorough public participation, and majority approval before a tax rate above the revenue-neutral level can be set. It also codifies a modestly higher late filing fee for reinstating expired Real Estate Appraiser trainee registrations, licenses, or certificates, with related consequences for lengthy lapses. The measures aim to improve transparency and accountability in tax rate decisions and regulatory licensing processes.

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.