North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S671 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	S 1
4		-	SENATE BILL 671
	3	+	S D
	4	+	SENATE BILL DRS15294-SVfa-5
	5	+
5	6
6	7
7	8		Short Title: Helene Rev. Replace./Locals; Prop Tax Relief. (Public)
8	9		Sponsors: Senators Hise, Moffitt, and Daniel (Primary Sponsors).
9		-	Referred to: ~~Rules and Operations of the Senate~~
10		-	~~March 26, 2025~~
11		-	~~S671 -v-1~~
	10	+	Referred to:
	11	+
	12	+	DRS15294 -SVfa-5
12	13		A BILL TO BE ENTITLED 1
13	14		AN ACT TO ESTABLISH A GRANT PROGRAM TO PROVIDE GRANTS AS REVENUE 2
14	15		REPLACEMENT TO LOCAL GOVERNMENTS THAT EXPERIENCED REVENUE 3
15	16		LOSS FROM PROPERTY TAXES, SALES AND USE TAXES, AND WATER AND 4
16	17		SEWER RECEIPTS AS THE RESULT OF HURRICANE HELENE AND TO PROVIDE 5
17	18		INTEREST RELIEF ON PROPERTY TAXES FOR PROPERTY OWNERS WHO 6
18	19		SUSTAINED A CERTAIN LEVEL OF PROPERTY DAMAGE AS THE RESULT OF 7
19	20		HURRICANE HELENE. 8
20	21		The General Assembly of North Carolina enacts: 9
21	22		SECTION 1.(a) Program; Purpose; Use. – The Department of Revenue is authorized 10
22	23		to create and administer the Helene Local Government Revenue Replacement Grant Program 11
23	24		(Program). The purpose of the Program is to provide grants to local governments in western 12
24	25		North Carolina that experienced revenue loss from property taxes, sales and use taxes, and water 13
25	26		and sewer receipts as a result of Hurricane Helene. A local government that is awarded a grant 14
26	27		under this section may use the funds for any public purpose. 15
27	28		SECTION 1.(b) Definitions. – The following definitions apply in this section: 16
28	29		(1) Eligible applicant. – A local government that can show qualified revenue loss. 17
29	30		Notwithstanding G.S. 105-472, a county is not eligible for a grant for sales 18
30	31		and use tax revenue loss if it changes the method of distribution for the fiscal 19
31	32		year beginning July 1, 2025. 20
32	33		(2) Local government. – Either of the following: 21
33	34		a. A county that qualified for individual and public assistance under 22
34	35		FEMA-4827-DR federal major disaster declaration as of September 23
35	36		28, 2024. 24
36	37		b. A municipality located, in part or in whole, in one of the counties 25
37	38		described in sub-subdivision a. of this subdivision. 26
38	39		(3) Non-Helene local governments. – All counties, and municipalities within 27
39	40		those counties, exclusive of those counties that qualified for individual and 28
40	41		public assistance under FEMA-4827-DR federal major disaster declaration as 29
41	42		of September 28, 2024. 30
42	43		(4) Property tax revenue loss. – The difference, if negative, between the estimated 31
43	44		real property tax revenue from storm-damaged property based on the 32
44	45		appraised value of the storm-damaged property as of January 1 multiplied by 33
45	46		the property tax rate in effect for the taxable year beginning July 1, 2024, and 34
46	47		the estimated real property tax revenue for taxable year beginning July 1, 35
47		-	2024, from storm-damaged property based on the appraised value of the 36 General Assembly Of North Carolina Session 2025
48		-	Page 2 Senate Bill 671-First Edition
	48	+	2024, from storm-damaged property based on the appraised value of the 36
	49	+	FILED SENATE
	50	+	Mar 25, 2025
	51	+	S.B. 671
	52	+	PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	53	+	Page 2 DRS15294-SVfa-5
49	54		storm-damaged property as of January 1, 2024, multiplied by the property tax 1
50	55		rate in effect for the taxable year beginning July 1, 2024. This term applies to 2
51	56		property tax revenue losses for each taxable year, beginning on July 1, 2025, 3
52	57		until the county's next scheduled reappraisal under G.S. 105-286 as of January 4
53	58		1, 2025. 5
54	59		(5) Qualified revenue loss. – The sum of all of the following: 6
55	60		a. Property tax revenue loss. 7
56	61		b. Sales and use tax revenue loss. 8
57	62		c. Water and sewer fee revenue loss. 9
58	63		(6) Sales and use tax revenue loss. – The difference, if negative, between (i) the 10
59	64		local government's total amount of sales and use tax distributions for a quarter, 11
60	65		adjusted by the percentage change in total sales and use distributions to 12
61	66		non-Helene local governments for the same quarter, and (ii) the local 13
62	67		government's total amount of sales and use tax distributions for the same 14
63	68		quarter of the prior year, except for the fourth quarter of 2025. For the fourth 15
64	69		quarter of 2025, the difference, if negative, between (i) the local government's 16
65	70		total amount of sales and use tax distributions for that quarter, adjusted by the 17
66	71		percentage change in total sales and use distributions to non-Helene local 18
67	72		governments for the same quarter, and (ii) the local government's total amount 19
68	73		of sales and use tax distributions for the same quarter of 2023. This term 20
69	74		applies to sales and use tax revenue losses beginning with the fourth quarter 21
70	75		of 2024 and through the fourth quarter of 2025. 22
71	76		(7) Storm-damaged property. – Any real property that was revalued in accordance 23
72	77		with G.S. 105-287 and was determined to have a decrease in value, as of 24
73	78		January 1, 2025, due to the impact of Hurricane Helene. 25
74	79		(8) Water and sewer fee revenue loss. – To the extent the local government 26
75	80		operates a water and sewer system, the difference, if negative, between (i) the 27
76	81		water and sewer revenue collected for a quarter from customers that 28
77	82		experienced a service disruption due to Hurricane Helene, and (ii) the revenue 29
78	83		collected for the same quarter of the prior year from those same customers, 30
79	84		except for the fourth quarter of 2025. For the fourth quarter of 2025, the 31
80	85		difference, if negative, between that quarter and the same quarter of 2023. 32
81	86		This term applies to water and sewer fee revenue losses beginning with the 33
82	87		fourth quarter of 2024 and through the fourth quarter of 2025. 34
83	88		SECTION 1.(c) Grant Amount; Application Process; Application Periods. – An 35
84	89		eligible applicant may apply for a grant in the amount of the eligible applicant's qualified revenue 36
85	90		loss for the applicable application period. To receive a grant, a local government must timely file 37
86	91		an application with the Department of Revenue in accordance with the application periods 38
87	92		described below on a form and in the method prescribed by the Department and must include any 39
88	93		supporting documentation required by the Department. The Department may accept applications 40
89	94		until the funds available under this program have been fully awarded. The application periods 41
90	95		are as follows: 42
91	96		(1) First application period. – The first application period is for a grant for 43
92	97		qualified revenue loss that includes (i) property tax revenue loss for the 44
93	98		taxable year beginning July 1, 2025, (ii) sales and use tax revenue loss for the 45
94	99		fourth quarter of 2024, and (iii) water and sewer fee revenue loss for the fourth 46
95	100		quarter of 2024. To apply for a grant for qualified revenue loss for this period, 47
96	101		an eligible applicant must file an application within 60 days of the effective 48
97	102		date of this section. 49
98	103		(2) Second application period. – The second application period is for a grant for 50
99	104		qualified revenue loss that includes (i) sales and use tax revenue loss for the 51 General Assembly Of North Carolina Session 2025
100		-	~~Senate Bill 671-First Edition~~ Page 3
	105	+	DRS15294-SVfa-5 Page 3
101	106		second quarter of 2025 and (ii) water and sewer fee revenue loss for the second 1
102	107		quarter of 2025. To apply for a grant for qualified revenue loss for this period, 2
103	108		an eligible applicant must file an application by August 31, 2025. 3
104	109		(3) Third application period. – The third application period is for a grant for 4
105	110		qualified revenue loss that includes (i) sales and use tax revenue loss for the 5
106	111		third quarter of 2025 and (ii) water and sewer fee revenue loss for the third 6
107	112		quarter of 2025. To apply for a grant for qualified revenue loss for this period, 7
108	113		an eligible applicant must file an application by November 30, 2025. 8
109	114		(4) Fourth application period. – The fourth application period for a grant is for 9
110	115		qualified revenue loss that includes (i) property tax revenue loss for the 10
111	116		taxable year beginning July 1, 2026, (ii) sales and use tax revenue loss for the 11
112	117		fourth quarter of 2025, and (iii) water and sewer fee revenue loss for the fourth 12
113	118		quarter of 2025. To apply for a grant for qualified revenue loss for this period, 13
114	119		an eligible applicant must file an application by February 28, 2026. 14
115	120		(5) Subsequent application period. – A subsequent application period is for a 15
116	121		grant for qualified revenue loss that includes property tax revenue loss for a 16
117	122		taxable year beginning on or after July 1, 2027. An eligible applicant must file 17
118	123		an application by the last day of February prior to the beginning of the taxable 18
119	124		year for which the grant is sought. 19
120	125		SECTION 1.(d) Allocation of Funds for the Helene Local Government Revenue 20
121	126		Replacement Grant Program. – There is appropriated from the General Fund to the Department 21
122	127		of Revenue the sum of forty million dollars ($40,000,000) in nonrecurring funds for the 22
123	128		2025-2026 fiscal year to be allocated for the Helene Local Government Revenue Replacement 23
124	129		Grant Program and to be used as provided in this section. The Department of Revenue may use 24
125	130		up to eight hundred thousand dollars ($800,000) of the funds allocated in this subsection for the 25
126	131		administration of this section, including the outreach described in subsection (e) of this section. 26
127	132		The Department shall remit any funds remaining after disposition of all timely filed applications 27
128	133		under this section to the Office of State Budget and Management which shall deposit the funds 28
129	134		into the General Fund. Amounts deposited into the Reserve under this section are receipts that 29
130	135		do not constitute an "appropriation made by law," as that phrase is used in Section 7(1) of Article 30
131	136		V of the North Carolina Constitution. 31
132	137		SECTION 1.(e) Outreach. – The Department of Revenue, in consultation with the 32
133	138		North Carolina Association of County Commissioners and the League of Municipalities, is 33
134	139		directed to inform and educate local governments that may be eligible to apply for the grants 34
135	140		provided by this section as soon as practicable to facilitate the awareness of access to the grants 35
136	141		provided by this section. 36
137	142		SECTION 1.(f) Report. – The Department must report annually by March 1 of each 37
138	143		year to the chairs of the House and Senate Appropriations Committee and the Fiscal Research 38
139	144		Division of the General Assembly the following information: 39
140	145		(1) The local governments that applied for and received grants under this section. 40
141	146		(2) The total amount of each grant awarded and the amount awarded for each type 41
142	147		of revenue loss covered by the grant. 42
143	148		SECTION 2.(a) Relief from Interest on Property Tax. – Real and personal property 43
144	149		that both (i) is located in the affected area, as defined in Section 1A.4 of S.L. 2024-57, and (ii) 44
145	150		sustained damage as a result of Hurricane Helene for which the property owner received 45
146	151		compensation in excess of forty-two thousand dollars ($42,000) in the form of State or federal 46
147	152		disaster relief or insurance proceeds, or a combination thereof, is designated a special class of 47
148	153		property under Article V, Section 2(2) of the North Carolina Constitution and is eligible to have 48
149	154		interest accruing on the property administered in accordance with this section. Notwithstanding 49
150	155		G.S. 105-360, interest that (i) accrues for the period of January 7, 2025, through December 31, 50
151	156		2026, and (ii) is attributable to an underpayment of property tax on qualifying real or personal 51 General Assembly Of North Carolina Session 2025
152		-	Page 4 ~~Senate Bill 671-First Edition~~
	157	+	Page 4 DRS15294-SVfa-5
153	158		property due on September 1, 2024, shall not be collected or, to the extent it is collected, shall be 1
154	159		carried forward as a credit against the property tax due the following year. This section does not 2
155	160		apply to classified motor vehicles. 3
156	161		SECTION 2.(b) Application for Relief. – A property owner claiming eligibility for 4
157	162		interest relief in accordance with this section must file an application with the assessor of the 5
158	163		county in which the property is situated. The application must contain a complete and accurate 6
159	164		statement of the facts that entitle the property to the interest relief and must include 7
160	165		documentation substantiating the minimum compensation required as payment or reimbursement 8
161	166		for property damage. Application forms must be made available by the assessor. A property 9
162	167		owner has the burden of establishing that the property is entitled to the relief provided under this 10
163	168		section. In order to be considered, an application must be filed no later than October 1, 2026. 11
164	169		Untimely applications shall not be considered. 12
165	170		SECTION 3. This act is effective when it becomes law. 13