Senate Bill 671 creates a new state grant program administered by the Department of Revenue to help local governments in western North Carolina recover from revenue losses caused by Hurricane Helene. The Helene Local Government Revenue Replacement Grant Program would reimburse eligible counties and municipalities for qualified losses tied to property taxes, sales and use taxes, and water and sewer receipts. Eligible local governments could apply in multiple application windows, and awarded funds could be used for any public purpose.
The bill also provides property tax interest relief for certain damaged real and personal property in the Helene affected area. For qualifying property owners who received more than $42,000 in combined state or federal disaster aid or insurance proceeds, interest on underpaid 2024 property taxes would not be collected for a specified period and, if already collected, would be credited against future property tax liability. The relief does not apply to classified motor vehicles and requires an application to the county assessor by October 1, 2026.
Impact
The bill would amend state law by creating a new temporary grant program within the Department of Revenue and appropriating $40 million in nonrecurring General Fund money for local government revenue replacement, with up to $800,000 available for administration and outreach. It would also establish a special property tax interest relief provision for certain Helene-damaged properties in the affected area, altering the normal collection rules for interest under G.S. 105-360 for eligible taxpayers. The measure affects counties and municipalities in the FEMA-declared disaster area, as well as property owners who sustained qualifying damage and received substantial disaster compensation or insurance proceeds.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the overall sentiment appears supportive and remedial. The measure is framed as disaster recovery assistance for western North Carolina local governments and property owners affected by Hurricane Helene, suggesting a policy goal of financial stabilization rather than controversy. The structure of the bill, including reporting requirements and application deadlines, indicates an administrative approach intended to target aid to documented losses.
Contention
The main points of potential contention are likely to be the size and use of the appropriation, the eligibility rules, and the scope of the tax relief. The bill limits grant eligibility to local governments in the FEMA disaster area and excludes certain counties from sales tax relief if they change distribution methods, which could raise fairness or administrative concerns. The property tax interest relief is also narrowly targeted to property owners who received more than $42,000 in disaster or insurance compensation, which may be viewed as excluding some affected owners while focusing aid on those with larger documented losses. No specific opposition or debate is included in the provided record.
Revenue and taxation; exclude from the calculation of taxable net income certain disaster relief or assistance grant program payments for agricultural losses suffered due to Hurricane Helene