{"id":386,"date":"2026-06-10T16:55:30","date_gmt":"2026-06-10T16:55:30","guid":{"rendered":"https:\/\/northcarolinamovingjournal.com\/?p=386"},"modified":"2026-06-10T16:55:30","modified_gmt":"2026-06-10T16:55:30","slug":"nc-property-tax-moratorium-on-collision-course-with-county-budgets-heads-for-final-vote","status":"publish","type":"post","link":"https:\/\/northcarolinamovingjournal.com\/?p=386","title":{"rendered":"NC property tax moratorium, on collision course with county budgets, heads for final vote"},"content":{"rendered":"
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The North Carolina House on Tuesday approved a controversial proposal to block some local governments from using new property tax revaluations in 2026.<\/span> Senate Bill 889<\/span> was approved on a 72-42 vote on second reading.\u00a0 A final House vote is scheduled for Wednesday.\u00a0<\/span><\/p>\n

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The vote followed a spirited debate along party lines. The strongest support came from Republicans, while most Democrats spoke against the legislation, insisting that it would harm the counties affected. Nonetheless, five Democrats crossed the aisle to vote in favor of the bill.<\/span><\/p>\n

\u201cI strongly believe that this bill is shortsighted to attempt to ease short-term financial pain,\u201d said Rep. Tracy Clark, a Democrat from Guilford County, one of the counties that would be affected by the bill.. \u201cIt will cause catastrophic trickle-down effects to all of the vital services uplifting Guilford County, from our schools to our public safety and beyond.\u201d<\/span><\/p>\n

Clark said the legislation would cause Guildford County Schools to lose $58 million in the upcoming fiscal year.<\/span><\/p>\n

\u201cWe continually, in this building, make our public schools do more with less, and the fact that we have no state budget and we\u2019re now passing this moratorium to prevent our county from doing what they need to do to pass their budget,\u201d said Clark, a public school parent. \u201cTaking away $58 million from Guilford County schools? I think it is disgusting and a disgrace.\u201d<\/span><\/p>\n

Guilford officials and some Democrats also questioned why House Republican leaders sat on S889 for five weeks, waiting to hear it until just days before June 30, when most counties are required to approve new budgets. <\/span><\/p>\n

Meanwhile, Republicans argued that S889, which grew out of growing concerns about rising property taxes, is needed to help tax-burdened residents stay in their homes while legislators craft more comprehensive property tax reform proposals in the coming months.<\/span><\/p>\n

\u201cI think it\u2019s incumbent upon this body to try to address the immediate problem while we grapple for solutions to the long-term problem,\u201d said Rep. John Blust (R-Guilford).<\/span><\/p>\n

According to Blust, the bill would now affect eight or nine counties, including his district. The last count was 12, but several counties were removed from the legislation.Blust said if counties are concerned about losing revenue due to the moratorium, they can simply raise their tax rates on existing property values to bring in what they need..\u00a0<\/span><\/p>\n

\u201cIf that\u2019s what you say you need for your budget, you\u2019re just gonna have to adjust your tax rate accordingly and be honest with people,\u201d Blust said.\u00a0<\/span><\/p>\n

If S889 isn\u2019t approved, low-income homeowners will be hurt the most, he said.<\/span><\/p>\n

\u201cThe lower-value houses went up at about twice the rate that the upper-value houses went up, and over twice the rate that commercial property went up,\u201d Blust said. \u201cIf these new values are used, we are pushing the property tax burden down on the little guy and the low-income guy.\u201d<\/span><\/p>\n

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Rep. Amos Quick (D-Guilford) said Democrats and Republicans agree that property taxes are too high and that something must be done to lower them.<\/span><\/p>\n

\u201cBut if you would please excuse my grammar, this ain\u2019t it,\u201d Quick said.\u00a0<\/span><\/p>\n

He pointed to the impact the legislation would have on Guilford County Schools, and said the county is too far along in its budget process to make such significant changes.<\/span><\/p>\n

\u201cI\u2019m a 12-year school board member and vice chairman from Guilford County before being elected here, and I know for a fact that almost $60 million in funding being removed from Guilford County schools would directly impact the delivery of the educational services that we provide to our families and to our children,\u201d Quick said.<\/span><\/p>\n

Rep. Eric Ager is a Democrat who represents Buncombe County, another county that would be affected by the proposal. He said state lawmakers must take responsibility for North Carolina\u2019s high property taxes because a lack of state funding is the reason county commissioners are having to increase taxes to meet demands for services.<\/span><\/p>\n

\u201cThe reason that they\u2019re having to take a little bit more property tax and a little bit more property tax and a little bit more property tax, is because here at the state level, we are falling down on the job,\u201d Ager said. \u201cWe have decided that big tax cuts and cutting our revenue into a place where we don\u2019t have any money, or that\u2019s what we hear, is the solution.\u201d<\/span><\/p>\n

Clark noted that<\/span> Senate Bill 474<\/span> has been rewritten as a companion bill to make changes to the moratorium, but it was not heard in the House on Tuesday. Leaders in Buncombe County have voiced concerns about having to defer property tax revenue while they\u2019re still grappling with the impacts of Hurricane Helene.\u00a0<\/span><\/p>\n

\u201cI do hope that if this bill passes, that we continue to push for 474 to make sure that Helene-impacted counties are not doubly punished,\u201d Clark said.\u00a0<\/span><\/p>\n

If the measure gains final House approval Wednesday, it goes to Democratic Gov. Josh Stein, who could veto it and send it back to lawmakers, sign it, or allow it to become law without his signature.<\/p>\n

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