As short session begins to hit its stride, it has been another busy week at the Legislature. While the bill-filing deadline for most general bills closed last Thursday, the deadline for all local bills ended Tuesday of this week. With filing deadlines now behind us, we are starting to see bills get assigned to committees to be heard in the coming weeks. We have also heard this week that House and Senate budget leaders may be getting closer in their negotiations and that legislators want to pass a budget by Memorial Day. However, rumors of impending budgets are common at the General Assembly, so please continue to follow the Weekly Update for the latest information.
Property tax reform continues to be the leading topic at the General Assembly. The Senate approved its property revaluation moratorium bill after removing several counties that would have been affected, and the bill now sits in the House, where its future is uncertain. Meanwhile, the House plans to take up two property tax bills during their Finance Committee meeting at 9:00 a.m. on Tuesday, May 12. First is its fix to the loophole created by the Blue Ridge Apartments lawsuit; NCACC supports this fix. Second, the House will consider a proposed constitutional amendment that would implement levy limits on local governments. We expect both pieces of legislation to move quickly through the House next week. You can watch the House Finance Committee meeting live here.
Bills on the Move
House Bill 1028 – Harnett County Jetport
Bill Summary: The bill allows any local government in Harnett County to enact and enforce airport zoning regulations, exempting the county from current state downzoning restrictions so long as the zoning change directly relates to airports. Though the bill only impacts Harnett County, it is indicative of numerous local bills that have been filed in this biennium because of the statewide ban on downzoning imposed in late 2024.
Changes of Note: None this week
Bill Next Steps: The bill passed the House Committee on State and Local Government on May 6 and will now head to the House Committee on Housing and Development.
Senate Bill 214 – Various Local Provisions VII
Bill Summary: The bill makes various land use changes for a number of local governments.
Changes of Note: The bill had previously allowed a specific county to acquire property in adjacent counties without their approval, but that provision was removed the week of April 27. Since those modifications, several new provisions were added:
- Removes Brunswick County parcels 221MB015, 221MB020, and 221MB02001 from the corporate limits of the City of Southport, effective June 30, 2026, with tax implications beginning July 1, 2026; preserves validity of existing municipal tax and assessment liens.
- Removes Yadkin County parcel 5816103271 from both the corporate limits and the extraterritorial jurisdiction of the Town of Yadkinville; preserves validity of existing municipal tax and assessment liens.
- Removes Cabarrus County parcels 46928542120000 and 46927593330000 from the corporate limits of the City of Kannapolis, effective June 30, 2026, with tax implications beginning July 1, 2026; preserves validity of existing municipal tax and assessment liens.
- Removes Brunswick County parcel 2273A155 from the extraterritorial jurisdiction of the Town of Sunset Beach; relinquishment is effective upon enactment, but existing development regulations and enforcement powers remain in effect as provided by statute.
- Removes the statutory cap on the total area of noncontiguous (satellite) annexations for the Town of East Spencer by adding it to the list of municipalities exempt from the 10% area limitation in G.S. 160A-58.1(b)(5).
- Makes all provisions effective when the act becomes law unless otherwise specified.
Bill Next Steps: The bill’s conference report passed the House on May 6 and is now enrolled in the Senate for consideration.
Senate Bill 889 – Property Tax Reappraisal Moratorium
Bill Summary: The stated intent of the bill is to freeze property valuations in 12 counties (Anson, Bladen, Buncombe, Chowan, Clay, Davidson, Guilford, Harnett, Onslow, Pamlico, Pender, and Scotland) that completed revaluations in 2026. The bill would require those counties to use their existing property valuations (completed prior to January 1, 2026) in their 2026-2027 fiscal year budgets. Then, for the 2027-2028 fiscal year, the counties would use their schedule of values adopted for the January 1, 2026 reappraisal. The bill also requires county tax assessors to pay a $20 examination fee.
Changes of Note: An amendment was introduced and passed to:
- Exempt counties from this law if they had populations lower than 15,000. This exemption only affects Chowan, Clay, and Pamlico counties.
- Allow taxpayers in the impacted counties the ability to appeal their 2026 appraisal if the appraisal becomes effective on January 1, 2027.
Bill Next Steps: The bill passed the Senate on May 6 and is now headed to the House for committee assignment.