AN ACT to require units of local government to vote on the issue of whether to adopt a revenue‑neutral tax rate in the year of a general reappraisal.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 159‑13 reads as rewritten:

§ 159‑13.  The budget ordinance; form, adoption, limitations, tax levy, filing.

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(c)        The budget ordinance of a local government shall levy taxes on property at rates that will produce the revenue necessary to balance appropriations and revenues, after taking into account the estimated percentage of the levy that will not be collected during the fiscal year. The budget ordinance of a public authority shall be balanced so that appropriations do not exceed revenues.

(c1)      For every year in which a general reappraisal of real property is conducted in a local government, the governing board of that local government shall vote on the issue of whether to levy taxes on property for that year at the revenue‑neutral tax rate set out in G.S. 159‑11(e). If a majority of the governing board votes in favor of the issue, then the budget ordinance of that local government shall levy taxes on property for that year at the revenue‑neutral tax rate set out in G.S. 159‑11(e) and otherwise in accordance with subsection (c) of this section. If a majority of the governing board votes against the issue, then the governing board shall levy taxes in accordance with subsection (c) of this section.

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SECTION 2.  This act is effective when it becomes law and applies to budget ordinances passed on or after that date.