AN ACT to Implement truth in taxation procedures when a governing body of a taxing unit intends to adopt a tax rate exceeding the revenue‑neutral tax rate in any year a general reappraisal is conducted and to increase the fee for reinstating an expired real estate appraiser trainee registration, license, or certificate.

The General Assembly of North Carolina enacts:

SECTION 1.(a)  G.S. 159‑13(b) is amended by adding a new subdivision to read:

(7a)    In the year in which a general reappraisal of real property has been conducted, the governing board shall follow the procedure required under G.S. 159‑13.3 in order to adopt a property tax rate exceeding the revenue‑neutral property tax rate determined under G.S. 159‑11(e).

SECTION 1.(b)  Chapter 159 of the General Statutes is amended by adding a new section to read:

§ 159‑13.3.  Adoption of tax rate exceeding revenue‑neutral tax rate.

(a)        Rate Prohibition. – In each year in which a general reappraisal of property is conducted, the governing body of a taxing jurisdiction may not adopt a property tax rate exceeding the revenue‑neutral tax rate determined under G.S. 159‑11(e) unless a resolution or ordinance has been approved by the governing body as provided under this section.

(b)        General Notice of Intent. – The governing body shall publish notice of its intent to exceed the revenue‑neutral tax rate in the following formats:

(1)        In a newspaper of general circulation in the taxing jurisdiction at least one week prior to the public hearing required under subsection (d) of this section.

(2)        On the website of the governing body, if applicable, at least 10 days prior to the public hearing required under subsection (d) of this section.

(c)        Specific Notice of Intent. – At least 30 days prior to the public hearing required under subsection (d) of this section, the governing body shall notify the county clerk of its proposed intent to exceed the revenue‑neutral tax rate and shall provide the clerk the information required to be included in the notice sent to taxpayers in this subsection. The clerk shall send notice to each taxpayer with property in the taxing jurisdiction, by first‑class mail at the taxpayer's last known address, of the governing body's intent to exceed the revenue‑neutral tax rate at least 10 days prior to the public hearing. Alternatively, if the taxpayer has consented to receive notice by electronic means, the clerk may send notice to the taxpayer by such means at least 10 days prior to the public hearing. The taxing unit shall bear the costs of providing the notice required under this subsection. The county clerk shall consolidate the information required under this subsection for all applicable taxing units associated with the taxpayer's property into one notice. The notice shall include, at a minimum, the following information specific to each taxing unit:

(1)        The proposed amount of property tax revenue needed to balance the taxing unit's budget.

(2)        The revenue‑neutral tax rate determined under G.S. 159‑11(e).

(3)        The proposed tax rate for the upcoming tax year.

(4)        The amount of tax due on the property for the current tax year.

(5)        The estimated amount of tax due on the property for the upcoming tax year if the revenue‑neutral rate is adopted.

(6)        The estimated amount of tax due on the property for the upcoming tax year if the proposed tax rate is adopted.

(7)        The date, time, and location of the public hearing.

(d)       Public Hearing. – The governing body shall hold a public hearing on the issue of exceeding the revenue‑neutral property tax rate. The public hearing may be held at or before the public hearing required under G.S. 159‑12; however, if the public hearing occurs at the same time as the public hearing required under G.S. 159‑12, the governing body shall dedicate a portion of the hearing to the issue of exceeding the revenue‑neutral property tax rate at which time any persons who wish to be heard on the subject may appear.

(e)        Majority Approval. – The governing body shall vote on the matter of exceeding the revenue‑neutral property tax rate at the hearing required under subsection (d) of this section. The governing body shall adopt a resolution or ordinance to exceed the revenue‑neutral property tax rate by majority vote which shall occur prior to the adoption of the budget ordinance.

(f)        Tax Refund. – A governing body that fails to comply with this section shall refund any amount of property taxes collected in excess of the amount that would have been collected under the revenue‑neutral property tax rate.

SECTION 1.(c)  This section is effective when it becomes law and applies to budget ordinances adopted for fiscal years beginning on or after July 1, 2027.

SECTION 2.(a)  G.S. 93E‑1‑7(c) reads as rewritten:

(c)      All trainee registrations, licenses, and certificates reinstated after the expiration dates shall be subject to a late filing fee of ten twelve dollars ($10.00) ($12.00) per month for each month or part thereof that the trainee registration, license, or certificate is lapsed, not to exceed one hundred twenty dollars ($120.00). The late filing fee shall be in addition to the required renewal fee. In the event a trainee, licensee, or certificate holder fails to reinstate the trainee registration, license, or certificate within 12 months after the expiration date thereof, the Board may, in its discretion, consider the person as not having been previously registered, licensed, or certified, and thereby subject to the provisions of this Chapter relating to the issuance of an original trainee registration, license, or certificate, including the examination requirements set forth herein. Applications to reinstate trainee registrations, licenses, or certificates expired for 12 or more months shall be accompanied by the fee required for an original trainee registration, license, or certificate.

SECTION 2.(b)  This section becomes effective July 1, 2026, and applies to registrations, licenses, and certificates reinstated on or after that date.

SECTION 3.  Except as otherwise provided, this act is effective when it becomes law.