North Carolina Bill Seeks to Freeze County Property Tax Revaluations for 2026

RALEIGH, N.C. — State lawmakers are seeking to halt all county property tax revaluation changes for one year under a new bill filed Tuesday by North Carolina Senate Leader Phil Berger. The proposed legislation, Senate Bill 889, would implement a statewide 12-month moratorium on property value adjustments, pushing any increases scheduled for 2026 to take effect in 2027 instead. The move comes in response to soaring property values across the state that have left many business owners and residents bracing for massive tax hikes. According to a release from Berger’s office, the bill is intended to give the General Assembly time to examine and potentially adopt broader property tax reforms. In some areas, the scheduled revaluations have been dramatic. In Guilford County, for instance, some property owners reported that their assessed values were projected to increase by 40% to 60%. A temporary freeze on tax revaluations offers short-term relief, but it introduces a significant element of uncertainty for business budgeting and long-term financial planning. Companies that own real estate must now navigate a shifting timeline for potentially dramatic increases in their tax liabilities, complicating forecasting and capital allocation for the coming years. The statewide proposal mirrors a contentious local decision made earlier this year in Pender County. On April 7, Pender County commissioners voted to suspend their 2026 property revaluation after it had already begun. That decision, however, was quickly met with warnings from state officials that the county might be violating state law. Both the North Carolina Department of Revenue and the UNC School of Government advised the commissioners that their action was on legally questionable ground. At issue is the North Carolina Machinery Act, the state statute that governs property taxation. The law requires counties to conduct property revaluations at least once every eight years to ensure values reflect the current market. Representatives from the Department of Revenue informed Pender County officials that the statute does not contain explicit provisions allowing a county to suspend a revaluation after the January 1 assessment date. The county’s own attorneys warned that the vote could trigger an investigation by the state Attorney General’s office. Senate Bill 889, co-sponsored by Senators Brent Jackson and Steve Jarvis, would provide a legislative solution to the standoff in Pender County while applying the same pause to all other counties. Senator Jackson’s involvement is particularly relevant, as his district includes Pender County. County officials, including Commissioners Jimmy Tate and Brent Springer, met with state lawmakers last week to discuss the proposed bill as a path forward. “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,” Berger said in a statement announcing the bill. This legislative delay underscores the complexity of state and local tax codes. For small and mid-sized businesses, a sudden, large increase in property tax can severely impact cash flow and profitability. This is not a tax cut, but a deferral. Businesses should use this one-year window to model the financial impact of the eventual revaluation and adjust their budgets accordingly. Navigating these changes requires specialized knowledge, which is why our tax preparation and compliance services are essential for clients facing these exact challenges. For guidance on how this moratorium affects your business's tax strategy, business owners should consult with professionals like those at C&S Finance Group LLC at csfinancegroup.com. While the situation in Pender County served as a catalyst, the bill’s scope is statewide, reflecting a broader concern among lawmakers about the economic shockwaves from rapidly appreciating real estate markets. The moratorium is designed to give legislators breathing room to consider policy changes that could soften the blow of future revaluations on both commercial and residential property owners without forcing individual counties into legally dubious positions. In our experience, legislative interventions like this, while well-intentioned, often create follow-on complexities. Business owners should not view this as a permanent solution but as a temporary reprieve that highlights the volatility of local tax environments and the need for proactive financial management. The bill was introduced during the legislature's short session, which began in late April. Its progress through the North Carolina House and Senate will be monitored closely by county governments, business associations, and property owners across the state, all of whom await clarity on their tax obligations for the coming two years.