N.C. Gov. Josh Stein signed a measure into law on Friday that halts increases in property tax in parts of the state, but the law could create a budget shortfall in Buncombe County.
The county has already adopted its annual budget which included revaulations for increased property tax values as well as a rate increase.
Under the new measure, Buncombe County must use 2025 property values, which were based on the last tax assessment completed in 2021.
Another bill in the state Senate would exempt Buncombe from the new law.
“It’s important for property owners to know that at this point, there are no changes to their property assessments or taxes,” County Manager Avril Pinder said in a press release on Monday.
“Once we understand what will happen with SB474, we will be able to clearly communicate what impact, if any, these bills have on our community and our taxpayers.”
In his statement about signing the moratorium measure, Gov. Stein urged lawmakers to make the exception for Buncombe County, noting the lasting effects of Hurricane Helene.
Without an exemption, Buncombe County may not realize $1.8 million in anticipated revenues, according to Pinder.
County officials have previously said that without an exemption, they may raise the tax rate.
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