The state Senate voted 36-9 Tuesday to delay property tax revaluations over concerns about rapidly rising real estate values.
The change would affect counties with new appraisal values set to take effect this year. They include Guilford, Buncombe and Harnett, as well as Bladen, Davidson and Scotland counties.
Sen. Steve Jarvis, R-Davidson, says property tax bills in his county could increase up to 60%.
"We have seen an extensive increase in property values, something in the double digits that we've never seen in history," he said. "With this moratorium, it will also provide the legislature time to actually address property tax values and what we may want to do in the future."
The Senate removed three smaller counties — Pamlico, Chowan and Clay — from being included in the moratorium.
"They apparently had reached out to their members, and they're perfectly happy with the revaluation that has taken place," Senate leader Phil Berger, who's sponsoring the legislation with Jarvis, said after Tuesday's vote.
It's unclear if the House will approve the property tax moratorium. Speaker Destin Hall is proposing a constitutional amendment to limit counties' ability to increase property taxes. That measure would need approval from voters during this November's election.
Asked about that approach, Berger said "I think there's support for that, or at least that concept. I don't know about the specific wording." But he stressed that a shorter-term solution is needed first. "Not calling this time out means that the folks in the affected counties are not going to get the benefit of whatever legislation that could come forward in the future."
Nine Democrats, two of whom represent Guilford County, voted against the moratorium. They proposed alternative options for addressing property tax and housing concerns, including tax exemptions for some homeowners and restrictions on corporate ownership of single-family rental homes.
"We, too, are hearing from constituents that want to keep more of their money in their pocket, especially when it comes to property taxes," said Sen. Natalie Murdock, D-Durham.
