A newly enacted law in North Carolina is set to halt property tax reappraisals, potentially compelling Buncombe County to revise its budget shortly after the fiscal year commences. The legislation, signed by Governor Josh Stein, temporarily prohibits counties from applying 2026 property tax reappraisals for tax calculations, a move that could create a $2 million shortfall for Buncombe County, where reappraisals took effect on January 1.
The law aims to provide tax relief, but some officials, including Governor Stein, are advocating for legislation to exclude counties still grappling with the aftermath of Hurricane Helene. Stein emphasized the need for broader measures, stating, “The cost of living is too high. This law provides tax relief for North Carolinians who are feeling pain in their pocketbooks. But the law helps residents in only a few counties, and it is not our most effective method of lowering costs. We must make life more affordable, which is why I’m pushing to cut taxes for working and middle class families and lower housing, electricity, child care, and health care costs.”
Set to be implemented on July 1 with the new fiscal year, the moratorium has stirred concern among Buncombe residents who experienced significant property value hikes—some as high as 324%, according to Asheville Watchdog. While the reappraisal freeze is seen by some as a protection against abrupt tax increases, local officials fear it may disrupt already established budgets.
During a recent meeting, Manheimer from the Governor’s Advisory Committee on WNC Recovery expressed concern, stating, “We’re kind of in a pickle because Asheville and Buncombe County, for example, have already passed our budgets using the new values.” He urged legislators to consider an exemption for Helene-impacted counties to avoid financial turmoil.
The fiscal challenges are heightened by recent budget constraints that led Asheville and Buncombe County to increase property taxes by over 10% to balance their budgets. In Asheville, the city council narrowly approved these increases amid debates for greater austerity.
Impact on Local Budgets
A proposed second bill, Senate Bill 474, aims to exclude Buncombe and other Hurricane Helene-affected areas from the reappraisal moratorium. Having passed the House, it awaits potential Senate voting as early as Tuesday.
Despite the moratorium, the anticipated relief might be limited. According to state legislation, governments facing significant revenue losses can amend budgets and adjust tax rates. Buncombe County may also revise its budget and tax rate anytime between July 1 and January 1, as confirmed by county spokesperson Lillian Govus.
However, Govus pointed out the logistical and financial implications of such adjustments, stating, “If we are not exempted then we will have to come back and rebrief on the budget after July 1. All of that diversion of work certainly amounts to a dollar figure we can’t qualify but there’s a tremendous amount of work of taking this information and making it usable.”
