Raleigh -- June 22. 2026: Governor Josh Stein has officially signed Senate Bill 889 and House Bill 1123 into law, enacting sweeping adjustments to the state's higher education capital contracting framework alongside a highly localized property tax appraisal moratorium. While both measures successfully cleared the General Assembly, the Governor paired his signatures with sharp critiques regarding the scope of the tax relief package and its potential unintended consequences on western counties still rebuilding from natural disasters.
House Bill 1123: Overhauling University Capital Infrastructure
House Bill 1123 focuses entirely on the structural and capital development capacities of higher education institutions across North Carolina. The legislation is designed to streamline construction timelines, alter structural funding thresholds, and enhance infrastructure procurement for the entire University of North Carolina (UNC) system.
In a statement released upon signing the legislation, Governor Stein underscored the systemic benefits the bill brings to the state's premier public university network:
“This bill will help meet the capital needs of institutions in the University of North Carolina system.”
Because House Bill 1123 alters administrative, contracting, and infrastructure guidelines globally for the UNC system, its footprint spans across all constituent campuses statewide. Rather than singling out regional targets, the law dynamically impacts every county anchored by a UNC system institution, supporting local academic environments and reinforcing the surrounding regional construction economies.
Senate Bill 889: Targeted Property Tax Moratorium Sparks Debate
In contrast to the statewide application of the university framework, Senate Bill 889 delivers localized tax interventions that Governor Stein argues fall short of comprehensive economic relief. The bill enacts a property tax reappraisal moratorium aimed at countering soaring local valuations, yet the statutory criteria limit its immediate relief to only a handful of jurisdictions.
Governor Stein expressed substantial reservations regarding the narrow geographic reach of the strategy, calling for broader legislative interventions to lower cost burdens for middle-class residents statewide:
“The cost of living is too high. This law provides tax relief for North Carolinians who are feeling pain in their pocketbooks. But the law helps residents in only a few counties, and it is not our most effective method of lowering costs. We must make life more affordable, which is why I’m pushing to cut taxes for working and middle class families and lower housing, electricity, child care, and health care costs.”
The tax relief parameters established by Senate Bill 889 strictly apply to the twelve North Carolina counties that executed scheduled property revaluations effective January 1, 2026:
Anson
Bladen
Buncombe
Chowan
Clay
Davidson
Guilford
Harnett
Onslow
Pamlico
Pender
Scotland
Hurricane Helene Recovery and the Call for Senate Bill 474
A primary point of contention surrounding the enactment of Senate Bill 889 is its intersection with ongoing disaster recovery initiatives. The state's western mountain regions, particularly Buncombe County, continue to navigate severe financial and infrastructural destabilization following the historic devastation wrought by Hurricane Helene.
Governor Stein warned that the mechanics of the property tax changes in Senate Bill 889 could inadvertently complicate local municipal recovery financing, which relies heavily on predictable property tax bases to fund emergency services and rebuild broken public infrastructure. He strongly pushed for separate, specialized protections to insulate storm-affected municipalities from financial volatile shocks:
“I am concerned about this law's impact on Hurricane Helene recovery in Buncombe County. Senate Bill 474 would shield Buncombe County and other jurisdictions recovering from the storm, and I urge the Senate to pass it.”
With the signing of both bills concluded, the legislative spotlight shifts squarely onto the Senate floor, where the fate of Senate Bill 474 remains central to the state's ongoing balancing act between active tax relief and long-term disaster resilience.