The North Carolina Senate has given final approval to legislation delaying the implementation of new property tax values, advancing a key piece of Senate Republicans’ response to rising local tax burdens.
Senators voted 35-8 on Wednesday to approve Senate Bill 889, which freezes property value increases tied to 2026 reappraisals and delays their use until 2027.
Under the bill, only counties that conducted property revaluations this year would be required to ignore their newly updated property values 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 legislation is sponsored by Senate Leader Phil Berger, R-Rockingham, along with Sens. Brent Jackson, R-Sampson; and Steve Jarvis, R-Davidson. Both Jackson and Jarvis are members of a Senate property tax working group Berger convened earlier this year.
Berger framed the bill as an initial step in addressing rising tax burdens tied to increasing property values.
“This is a good first step for residents across North Carolina who are feeling the tax impacts of increasing property values,” Berger said. “This will not be the last thing the General Assembly does on property taxes. We need to take a thoughtful, comprehensive approach to address the growing strain of property tax increases on our citizens.”
Jackson emphasized the temporary nature of the pause.
“This is just a temporary pause to give residents some breathing room,” Jackson said. “Senate Republicans will continue working to bring forward commonsense approaches to ensure that your tax dollars are being spent wisely.”
Jarvis said the measure strikes a balance between local government budget needs and taxpayer concerns.
“Now is the right time for us to get this moratorium into law,” Jarvis added. “This approach balances the need for local governments to set their budgets, while also giving North Carolinians who are facing higher-than-expected property values a reprieve.”
The Senate approach contrasts with proposals emerging in the NC House, where lawmakers are pursuing a longer-term structural change to property taxes. House Republicans have filed legislation to place a constitutional amendment on the ballot that would limit how much local governments can grow property tax revenues through a levy limit.
House Speaker Destin Hall, R-Caldwell, signaled support for that approach following the release of committee recommendations.
“Property tax hikes are overburdening North Carolina families, who are footing the bill while some local governments take in far more than inflation and population growth can justify,” Hall said in a statement. “I applaud the House Select Committee on Property Tax Reduction and Reform for pursuing real reforms like the constitutional amendment on levy limits, which would ease this burden so North Carolinians can keep more of their hard-earned money.”
Unlike the Senate’s temporary reappraisal delay, the House proposal would restrict overall revenue growth — even as property values rise — and would require voter approval if advanced to the ballot.
The two approaches are not mutually exclusive, and both could ultimately be enacted as lawmakers explore multiple avenues for property tax relief.
The next step for Senate Bill 889 is consideration and approval by the NC House.
