Senate Bill 615, the Property Tax Rate Transparency Act, would require a local government governing board to take a formal vote in any year when a general reappraisal of real property occurs on whether to adopt the revenue-neutral property tax rate. Under the bill, if a majority of the board votes in favor, the local government must levy property taxes at the revenue-neutral rate defined in existing law; if the vote fails, the local government would instead proceed under the normal budget-balancing rules.
The bill does not eliminate local discretion over property tax rates, but it adds a procedural requirement intended to make the decision more visible and explicit during reappraisal years, when property values and tax bills can change significantly. It would amend G.S. 159-13, which governs local budget ordinances, and would apply to budget ordinances adopted on or after the effective date of the act.
Impact
The bill would modify North Carolina local government budget law by adding a new subsection to G.S. 159-13 requiring a recorded board vote on the revenue-neutral tax rate in years of general reappraisal. This would affect counties, municipalities, and other local governments that levy property taxes, while leaving the underlying revenue-neutral rate definition in G.S. 159-11(e) unchanged. The practical effect is to create an additional transparency and accountability step in the property tax-setting process, especially in reappraisal years.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of legislative debate or formal support/opposition in the available materials. Based on the bill’s title and structure, the measure appears designed to appeal to taxpayers and advocates of tax transparency by forcing an explicit vote on whether to hold tax rates revenue-neutral after reappraisal. At the same time, local officials who prefer flexibility in setting budgets and tax rates may view the requirement as an added constraint or political pressure point.
Contention
The likely point of contention is whether local governing boards should be required to take a separate vote on the revenue-neutral rate in reappraisal years, rather than simply setting property tax rates through the ordinary budget process. Supporters would likely emphasize transparency, taxpayer notice, and limiting unexpected tax increases after reassessment. Opponents may argue that the requirement could politicize routine budget decisions, reduce local control, and complicate the ability of governments to respond to revenue needs after property values are updated.
Senate Substitute for HB 2125 by Committee on Assessment and Taxation - Modifying the deadline for mailing property tax statements to taxpayers and the deadline for governing bodies to certify the amount of property tax to be levied to the county clerk, providing for the county clerk's use of the previous year's budget when a taxing subdivision fails to timely file its budget, modifying the content requirements of the revenue neutral rate hearing notice for property tax purposes, extending reimbursement from the taxpayer notification costs fund for printing and postage costs for county clerks for calendar years 2025 and 2026, prohibiting a filing fee when a previous appeal remains pending before the board of tax appeals and authorizing the continuation of the 20-mill statewide property tax levy for schools.