NC House Passes Property Tax Moratorium in Second Reading Vote
House lawmakers clash over bill that would cost Guilford County Schools $58 million as final vote looms before budget deadline.
RALEIGH, NORTH CAROLINA — The North Carolina House approved a controversial proposal Tuesday to prevent some local governments from implementing new property tax revaluations in 2026, setting up a potential budget crisis for affected counties.
Senate Bill 889 passed on a 72-42 vote during its second reading, with a final House vote scheduled for Wednesday. The legislation would block certain municipalities from using updated property assessments that typically generate additional revenue for local services.
Partisan Debate Erupts Over County Impacts
The vote followed intense debate that largely split along party lines, though five Democrats crossed over to support the Republican-backed measure. Critics warned the moratorium could devastate local government budgets just weeks before the June 30 deadline when most counties must approve their annual spending plans.
“I strongly believe that this bill is shortsighted to attempt to ease short-term financial pain,” said Rep. Tracy Clark, a Democrat from Guilford County. “It will cause catastrophic trickle-down effects to all of the services uplifting Guilford County, from our schools to our public safety and beyond.”
Clark, whose district would be directly affected by the legislation, said Guilford County Schools would lose $58 million in the upcoming fiscal year if the moratorium takes effect.
School Funding at Risk
The potential revenue loss has particularly alarmed education advocates and local officials. Clark, who is a public school parent, criticized the timing and impact of the proposed moratorium.
“We continually, in this building, make our public schools do more with less, and the fact that we have no state budget and we’re now passing this moratorium to prevent our county from doing what they need to do to pass their budget,” Clark said. “Taking away $58 million from Guilford County schools? I think it is disgusting and a disgrace.”
Democratic lawmakers and Guilford County officials also questioned why House Republican leaders delayed action on the bill for five weeks before bringing it to a vote just days before the budget deadline.
Republicans Defend Tax Relief Measure
Republican supporters argued that the moratorium addresses growing concerns about rising property taxes that are forcing some residents from their homes. They positioned the legislation as temporary relief while state lawmakers develop more comprehensive property tax reform proposals.
The bill emerged from mounting pressure over increasing property tax burdens across the state, though specific details about which counties would be affected beyond Guilford were not immediately available.
If the House approves the measure in Wednesday’s final vote, it would need to return to the Senate for consideration of any changes made during the House review process. The tight timeline before the June 30 budget deadline has intensified pressure on lawmakers to resolve the issue quickly.
