By NICOLE BOWMAN-LAYTON

A bill moving through the North Carolina General Assembly that would delay the implementation of new property tax values in 2026 may ultimately exempt Chowan County and those with fewer than 15,000 residents after senators approved an amendment narrowing which counties would be affected.

Senate Bill 889, titled the “Property Tax Reappraisal Moratorium,” passed the North Carolina Senate earlier this week and is in the House for consideration.

The bill originally proposed requiring every county conducting a 2026 property reappraisal to continue using older property values for the 2026-27 fiscal year instead of newly reassessed values.

But during Senate debate, lawmakers approved an amendment limiting the proposal to counties with populations of 15,000 or greater, according to the most recent federal census. The bill now impacts only eight counties in the state that started their revaluations on Jan. 1, 2026 — Davidson, Guilford, Bladen, Buncombe, Harnett, Onslow, Pender and Scotland counties.

Because Chowan County’s population falls below that threshold, the county would likely be exempt from the reappraisal delay if the legislation becomes law in its current form.

Among the bill’s sponsors is Sen. Norm Sanderson, whose district includes much of northeastern North Carolina, including Chowan and several surrounding counties.

Legislative records show multiple amendments were proposed during Senate consideration of the bill, though only the population-threshold amendment was adopted.

Supporters of the legislation say the proposal is intended to provide relief to homeowners facing sharp increases in assessed property values following recent growth in North Carolina’s real estate market.

The issue comes as Chowan County prepares for substantial increases in assessed property values during its ongoing countywide revaluation.

A company hired by the county told officials average property values are increasing between 38% and 42% compared with the county’s last revaluation in 2022, according to previous reports.

Supporters of the legislation say the proposal is intended to provide relief to homeowners facing sharp increases in assessed property values following recent growth in North Carolina’s real estate market.

The issue comes as Chowan County prepares for substantial increases in assessed property values during its ongoing countywide revaluation.

County officials have said average property values are increasing between 38% and 42% compared with the county’s last revaluation in 2022.

During a podcast with the Albemarle Observer, County Manager Kevin Howard has said the county intends to calculate a revenue-neutral tax rate designed to generate approximately the same amount of revenue as the previous year despite higher assessed values.

Under North Carolina law, counties periodically reassess property values to reflect current market conditions. Chowan County conducts revaluations every four years.

The process uses recent real estate sales, construction data, property characteristics and neighborhood market trends to estimate the market value of homes, businesses and land as of a specific date. For the current cycle, Jan. 1, 2026, serves as the effective valuation date.

Property owners who disagree with their assessments may appeal through the county’s Board of Equalization and Review.

The Senate amendment also revised portions of the bill dealing with property tax appeals, clarifying that taxpayers in affected counties could still challenge appraisals during both 2026 and 2027 under certain circumstances.

County officials have emphasized that higher property values do not automatically translate into equivalent increases in tax bills because local governments can lower tax rates after revaluations.

“Instead of having to raise your tax rate, we’re going to reduce our tax rate. How far can we go and make our budget work?” County Manager Kevin Howard said during a recent Albemarle Observer podcast about the revaluation process.

The debate comes as many residents continue facing rising costs for housing, insurance, groceries and utilities, increasing concern about how higher assessments could affect future tax bills.

County officials have also pointed to rising operational and infrastructure costs, including ongoing efforts to address the county’s aging jail facility and the expense of housing some inmates outside the county while regional solutions are explored.

For several years, county leaders have discussed alternatives for the aging jail, including participation in a regional jail model with neighboring counties. The move should need approval by the General Assembly.

The debate is unfolding as county commissioners begin work on Chowan County’s proposed fiscal year 2026-27 budget.

Howard formally presented the proposed budget to the Board of Commissioners on Monday, beginning several weeks of public review and discussion before final adoption.

Commissioners are expected to host a series of budget workshops and hearings with department heads in the coming weeks. The meetings are open to the public.

Under North Carolina law, counties must adopt annual budgets by June 30. Chowan commissioners are expected to approve a final spending plan at a June meeting after determining the county’s final tax rate following the budget hearing process.

Several residents have recently expressed concerns during public meetings about how rising property values could affect taxpayers, particularly retirees and residents on fixed incomes.

County officials, meanwhile, have stressed that no final tax decisions have been made and that the budget process remains ongoing.

The North Carolina House could still revise Senate Bill 889 before final passage, including the amendment affecting smaller counties.

The SB 889 amendment

Senate Bill 889

Editor’s note: This story was revised at 11:58 a.m. May 8, 2026, to include more quotes and information from previous stories.