Governor signs bill setting one-year moratorium on Guilford property tax reappraisals

It's official.

Guilford County and Davidson County residential homeowners will get a one-year break from property value reappraisals.

Gov. Josh Stein signed into law on Friday bipartisan Senate Bill 889, titled "Property tax reappraisal moratorium," that prevents the counties from implementing property tax revaluation changes for fiscal 2026-27.

Stein had 10 days to sign the bill, veto it or let it become law without his signature.

"The cost of living is too high. This law provides tax relief for North Carolinians who are feeling pain in their pocketbooks," Stein said. "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."

The focus of SB 889 is clearly on Guilford, particularly the revaluation completed earlier this year, which is set to take effect with the county and Greensboro city budgets for fiscal year 2026-27.

The state House approved SB889 by a 69-43 third and final vote on June 11. That vote drew the support of three Democrats - none from Guilford.

The Senate approved the bill by a 35-8 vote on May 6. Guilford Sen. Gladys Robinson voted no. Guilford Sen. Michael Garrett had an excused absence.

The one-year moratorium affects eight counties that conducted 2026 reappraisals, requiring them to maintain existing property values for the 2026–27 fiscal year budget.

SB 889 was filed by Senate leader Phil Berger, R-Rockingham, who said the legislation "freezes any proposed property value adjustments prompted by a county property tax revaluation, but would allow those values to take effect in 2027."

Anson, Bladen, Chowan, Onslow, Pamlico and Pender counties are also part of the bill.

Guilford adjustments

By state law, city and county budgets have to be approved by the start of their fiscal year on July 1.

The commissioners are set to meet at 4 p.m. Thursday to adopt the county budget for fiscal year 2026-27.

During his May 7 budget presentation, Guilford Manager Victor Isler proposed a tax rate of 61.9 cents per $100 of assessed value.

While that rate is more than 11 cents lower than the current rate of 73.05 cents, it is more than 8 cents higher than the 53.26-cent revenue-neutral rate, which would bring in about the same revenue as during the previous year.

The moratorium prevents that recommendation from being enacted.

On Thursday, the county said staff were reviewing the potential impacts and preparing revisions to the recommended budget as needed pending Stein's signing of SB 889 into law.

The county said in a statement to residential taxpayers that they can look up those residential values by searching their address or name on the Guilford Bill Search web page.

"The moratorium will pause the use of the updated assessed values included in recent notices of value until Jan. 1," according to the statement. "Those values are expected to be used for the fiscal year 2028 budget, which begins July 1, 2027."

Property owners will have until Dec. 31 to appeal their property value.

Property tax bills are now projected to be mailed by Aug. 15, rather than the previously planned date of July 10.

Residents who pay their bill by Aug. 31 will receive a 1% discount. Under state law, commissioners cannot adjust the dates of the early payment discount period at this time.

Greensboro adjustments

On June 16, Greensboro City Council voted unanimously in favor of a budget that raises the city's property tax by 12.6 cents, from 67.25 cents per $100 to 79.85 cents.

City officials have said they are already planning to meet at 1:15 p.m. on Tuesday to consider altering the tax rate if SB 889 was not implemented.

Greensboro officials said the 12-cent increase in the property tax rate would help to offset nearly $50 million in revenue the city is expected to lose due to the moratorium.

How we got here

Residential property tax rates are a focal point in large part because the Republican-controlled legislature has reduced the corporate tax rate from 6.9% in 2012 to 2% in 2026.

At 2%, the rate is already the lowest among the 44 states with a corporate tax rate. The rate is on track to reach 1% in 2028 and will be phased out in 2030.

This leaves property, retail sales and hotel occupancy taxes as the primary revenue streams for local municipalities and counties.

Berger cited Guilford as an example of the need for SB 889, saying, "Residents report their property values could skyrocket by 40% to 60% if the county's proposal is allowed to go forward."

"This will not be the last thing the General Assembly does on property taxes," Berger said. "We need to take a thoughtful, comprehensive approach to address the growing strain of property tax increases on our citizens."

Rules committee chairman Sen. Bill Rabon, R-Brunswick, and Sen. Steve Jarvis, R-Davidson, said SB 889 is also designed to give legislators more time to study long-term options.

The legislature has already passed House Bill 1089, which gives North Carolina voters the ability to restrict counties' and municipalities' ability to increase property tax levies.

The constitutional amendment will be on the Nov. 3 general election ballot. Voters would be asked to approve allowing the legislature to set a property tax levy cap that bill sponsors have not announced.

State law currently limits the authorization of municipality property tax levies to $1.50 per $100 of value.

Affordability concerns

Rep. John Blust, R-Guilford, and a primary House supporter of SB 889 said in his summation on the House floor that he hopes Guilford Democrats "just don't understand what they're saying and are not being misleading."

"I don't see how you can argue that you're for affordability if you are willing to put people's houses at risk because they can't afford them."

Rep. Tracy Clark, D-Guilford, said she understands the affordability concerns from Guilford homeowners.

"I particularly worry about residents on a fixed income who are already experiencing financial troubles with the insane gas prices from (President) Trump's war with Iran, and the increased cost of goods due to Trump's tariffs fallout and ongoing inflation," Clark said. "I have also spoken with residents who are pleased with their new valuations and believe that it is fair, based on the skyrocketing market cost we are seeing across the country."

Clark also called out legislative Republican leadership for nearing a year without passing a 2025-26 budget.

"We are restricting our local elected officials from doing what they need to do in order to invest in all the schools, in water infrastructure and workforce preparedness, and everything else that comes with the logistical elements to fulfilling that economic promise," Clark said.

Rep. Pricey Harrison, D-Guilford, said during the House floor debate that with property-tax levy restrictions legislation going before voters as a constitutional amendment on the Nov. 3 general election ballot "it's like a double whammy for our county."

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This story was originally published June 20, 2026 at 5:36 AM.