ASHEVILLE, N.C. (828newsNOW) — Buncombe County property owners could receive their tax bills later than usual this year as county leaders weigh how to respond to new state legislation affecting property tax reappraisals.
During a Thursday morning briefing, county officials said recently approved legislation has left commissioners with a difficult choice: accept a one-year freeze on using updated property values for tax bills or revise the county’s tax rate to preserve revenue needed to fund its recently adopted budget.
Gov. Josh Stein signed Senate Bill 889 into law on June 19, placing a one-year moratorium on using 2026 property reappraisal values in nine North Carolina counties, including Buncombe. The governor said the measure provides temporary tax relief for homeowners struggling with rising living costs.
“The cost of living is too high,” Stein said in a statement after signing the bill. “This law provides tax relief for North Carolinians who are feeling pain in their pocketbooks.”
At the same time, Stein acknowledged the law could create challenges for Buncombe County as it continues recovering from Tropical Storm Helene.
“I am concerned about this law’s impact on Hurricane Helene recovery in Buncombe County,” Stein said. “Senate Bill 474 would shield Buncombe County and other jurisdictions recovering from the storm, and I urge the Senate to pass it.”
Senate Bill 474 would exempt Buncombe, Harnett and Scotland counties from the moratorium while adding Chowan and Pamlico counties. Under the proposal, Buncombe County could continue using its 2026 property reappraisal if commissioners adopt a revenue-neutral property tax rate.
County Manager Avril Pinder said commissioners will meet later this month to determine which option to pursue.
If commissioners choose the revenue-neutral option, county officials estimate Buncombe would collect about $24.8 million less than anticipated — roughly 5 percent of the county’s adopted general fund budget.
The alternative would require commissioners to amend the county’s tax rate high enough to generate the revenue needed to support the budget adopted in June. That decision would also require revisiting tax rates for school and county fire districts.
Board of Commissioners Chair Amanda Edwards said the legislation also undercuts years of work to improve the county’s property reappraisal process.
Following Buncombe County’s 2021 reappraisal, officials formed a citizen advisory committee and hired an independent reviewer after concerns that some higher-value properties had been undervalued. Edwards said using older property values again could create inequities for taxpayers.
“We are committed to transparency, stability and responsible stewardship of taxpayer dollars,” Edwards said, adding that commissioners will continue evaluating the best path forward.
The uncertainty is also expected to delay this year’s property tax bills.
County officials said bills are typically mailed in August, but if commissioners choose a path that requires resetting the county’s tax system, mailing could slip into September. Online tax bills would likely become available before paper statements are mailed.
Officials encouraged homeowners who make monthly property tax payments to continue doing so while the county works through the process.
Despite concerns over the legislation, county officials said they do not expect Helene recovery projects to be significantly affected because most recovery funding comes from FEMA and the state. They also said the county had already accounted for the possible loss of about $1.8 million in public utility tax revenue during this year’s budget planning and does not anticipate additional budget cuts because of that issue.
Commissioners are expected to discuss the legislation and decide how to proceed later this month. Until then, county officials said residents should continue monitoring county updates for information on when property tax bills will be issued.