Bill > H539

This bill requires local governments in North Carolina to adopt a revenue-neutral tax rate in years when a general reappraisal of real property occurs. A revenue-neutral tax rate is a tax rate that is adjusted to ensure that the total property tax revenue remains the same as the previous year, despite changes in property values that result from a reappraisal. Specifically, the bill modifies existing law by adding a new subsection (c1) to G.S. 159-13, mandating that during a year of general reappraisal, local governments must set their property tax rates at the revenue-neutral rate as defined in G.S. 159-11(e). This means that if property values increase due to reappraisal, the tax rate would be lowered proportionally to prevent the local government from automatically collecting more total tax revenue. The bill becomes effective immediately upon becoming law and applies to budget ordinances passed on or after that date, aiming to provide taxpayers with some protection against potential tax increases resulting from property value reassessments.

Government Affairs

https://www.ncleg.gov/BillLookUp/2025/H539