GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 21 SENATE BILL 992 Finance Committee Substitute Adopted 6/18/26 Short Title:

Senators Ford, B.

Newton, and McInnis (Primary Sponsors).

Rules and Operations of the Senate May 4, 2026 A BILL TO BE ENTITLED AN ACT TO IMPLEMENT TRUTH IN TAXATION PROCEDURES WHEN A GOVERNING BODY OF A TAXING UNIT INTENDS TO ADOPT A TAX RATE EXCEEDING THE REVENUE-NEUTRAL TAX RATE IN ANY YEAR A GENERAL REAPPRAISAL IS CONDUCTED AND TO INCREASE THE FEE FOR REINSTATING AN EXPIRED REAL ESTATE APPRAISER TRAINEE REGISTRATION, LICENSE, OR CERTIFICATE.

– At least 1430 days prior to the public hearing required under subsection (d) of this section, the governing body shall sendnotify notice,the orcounty otherwiseclerk causeof noticeits proposed intent to beexceed sent,the torevenue-neutral eachtax taxpayerrate withand propertyshall inprovide the taxingclerk jurisdictionthe ofinformation therequired governingto body'sbe intentincluded in the notice sent to exceedtaxpayers therevenue-neutralin taxthis rate.subsection.

ThenoticeThe mustclerk besentshall byfirst-classsend mailnotice to thetaxpayer'seach taxpayer with property in the taxing jurisdiction, by first-class mail at the taxpayer's last known addressaddress, orof electronicallythe ifgoverning body's intent to exceed the taxpayerrevenue-neutral hastax consentedrate toat receiveleast notice10 bydays electronicprior means.to the public hearing.

TheAlternatively, if the taxpayer has consented to receive notice shallby include,electronic atmeans, athe minimum,clerk may send notice to the followingtaxpayer informationby specificsuch means at least 10 days prior to the taxingpublic unit:hearing.

The taxing unit shall bear the costs of providing the notice required under this subsection.

The countyclerk shall consolidate the information required under this subsection *S992-v-1* General Assembly Of North Carolina Session 2025 for all applicable taxing units associated with the taxpayer's property into one notice.

The notice shall include, at a minimum, the following information specific to each taxing unit:

*S992-v-2* General Assembly Of North Carolina Session 2025 (3) The proposed tax rate for the upcoming tax year.

– The governing body shall hold a public hearing on the issue of exceeding the revenue-neutral property tax rate.

IfThe the governing body is proposing to adopt a property tax rate in excess of the revenue-neutral tax rate in its budget ordinance, the public hearing may be held at or before the public hearingrequiredhearing required under G.S.

If subsection (g) of this section applies, the governing body shall hold a separate public hearing prior to amending the budget ordinance.

The governing body shall adopt a resolution or ordinance to exceed the revenue-neutral property tax rate by majority vote which shall occur prior to adopting the budgetadoption ordinance or, if subsection (g) of this section applies, amending the budget ordinance.

– A governing body that fails to comply with this section shall refund any amount of property taxes collected in excess of the amount that would have been collected under the revenue-neutral property tax rate.rate." SECTION 1.(c) This section is effective when it becomes law and applies to budget ordinances adopted for fiscal years beginning on or after July 1, 2027.

Refunds provided for under this section are considered lawfully issued refunds under G.S.

105-380.

(g) Amending the Budget Ordinance.

– If the governing body of a taxing jurisdiction adopts a property tax rate at or below the revenue-neutral tax rate in its budget ordinance, but then seeks to amend the budget ordinance to increase the property tax rate above the revenue-neutral tax rate due to the local government receiving revenues that are substantiallyless than the amount anticipated, as authorized under G.S.

159-15, the governing body shall follow the procedures required under this section prior to amending the budget to adopt the increased property tax rate.

(h) Applicability.

– This section shall not apply when the governing board is ordered to amend its budget to increase or reduce a property tax levy or in any manner alter a property taxpayer's liability by a court of competent jurisdiction, or by a State agency having the power to compel the levy of taxes by the governing board, as provided under G.S.

159-15." SECTION 1.(c) This section is effective when it becomes law and applies to budget ordinances adopted for fiscal years beginning on or after July 1, 2027.

Applications to reinstate trainee registrations, licenses, or certificates expired for 12 or more months shall be accompanied by the fee required for an original trainee registration, license, or certificate." Page 2 Senate Bill 992-Second Edition General Assembly Of North Carolina Session 2025 SECTION 2.(b) This section becomes effective July 1, 2026, and applies to registrations, licenses, and certificates reinstated on or after that date.

SECTION 3.(a)3. G.S.

105-380(a) reads as rewritten:

"(a) The governing body of a taxing unit is prohibited from releasing, refunding, or compromising all or any portion of the taxes levied against any property within its jurisdiction except as expressly provided in this Subchapter.Subchapter or under G.S.

159-13.3." SECTION 3.(b) This section is effective when it becomes law and applies to refunds issued on or after that date.

SECTION 4.(a) G.S.

159-15 reads as rewritten:

"§ 159-15.

Amendments to the budget ordinance.

Except as otherwise restricted by law, the governing board may amend the budget ordinance at any time after the ordinance's adoption in any manner, so long as the ordinance, as amended, continues to satisfy the requirements of G.S.

159-8 and 159-13.

However, except as otherwise provided in this section, no amendment may increase or reduce a property tax levy or in any manner alter a property taxpayer's liability, unless the board is ordered to do so by a court of competent jurisdiction, or by a State agency having the power to compel the levy of taxes by the board.

If after July 1 the local government receives revenues that are substantially more or less than the amount anticipated, the governing body may, before January 1 following adoption of the budget, amend the budget ordinance to reduce or increase the property tax levyto account for the unanticipated increase or reduction in revenues.revenues, provided that the governing body adheres to the requirements under G.S.

159-13.3.

The governing board byappropriate resolution or ordinance may authorize the budget officer to transfer moneys from one appropriation to another within the same fund subject to such limitations and procedures as it may prescribe.

Any such transfers shall be reported to the governing board at its next regular meeting and shall be entered in the minutes." SECTION 4.(b) This section is effective when it becomes law and applies to amendments to budget ordinances adopted for fiscal years beginning on or after July 1, 2027.