North Carolina SB 671: Helene Rev. Replace./Locals; Prop Tax Relief.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 671

Short Title: Helene Rev. Replace./Locals; Prop Tax Relief. (Public)
Sponsors: Senators Hise, Moffitt, and Daniel (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 26, 2025
*S671-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO ESTABLISH A GRANT PROGRAM TO PROVIDE GRANTS AS REVENUE 2
REPLACEMENT TO LOCAL GOVERNMENTS THAT EXPERIENCED REVENUE 3
LOSS FROM PROPERTY TAXES, SALES AND USE TAXES, AND WATER AND 4
SEWER RECEIPTS AS THE RESULT OF HURRICANE HELENE AND TO PROVIDE 5
INTEREST RELIEF ON PROPERTY TAXES FOR PROPERTY OWNERS WHO 6
SUSTAINED A CERTAIN LEVEL OF PROPERTY DAMAGE AS THE RESULT OF 7
HURRICANE HELENE. 8
The General Assembly of North Carolina enacts: 9
SECTION 1.(a) Program; Purpose; Use. – The Department of Revenue is authorized 10
to create and administer the Helene Local Government Revenue Replacement Grant Program 11
(Program). The purpose of the Program is to provide grants to local governments in western 12
North Carolina that experienced revenue loss from property taxes, sales and use taxes, and water 13
and sewer receipts as a result of Hurricane Helene. A local government that is awarded a grant 14
under this section may use the funds for any public purpose. 15
SECTION 1.(b) Definitions. – The following definitions apply in this section: 16
(1) Eligible applicant. – A local government that can show qualified revenue loss. 17
Notwithstanding G.S. 105-472, a county is not eligible for a grant for sales 18
and use tax revenue loss if it changes the method of distribution for the fiscal 19
year beginning July 1, 2025. 20
(2) Local government. – Either of the following: 21
a. A county that qualified for individual and public assistance under 22
FEMA-4827-DR federal major disaster declaration as of September 23
28, 2024. 24
b. A municipality located, in part or in whole, in one of the counties 25
described in sub-subdivision a. of this subdivision. 26
(3) Non-Helene local governments. – All counties, and municipalities within 27
those counties, exclusive of those counties that qualified for individual and 28
public assistance under FEMA-4827-DR federal major disaster declaration as 29
of September 28, 2024. 30
(4) Property tax revenue loss. – The difference, if negative, between the estimated 31
real property tax revenue from storm-damaged property based on the 32
appraised value of the storm-damaged property as of January 1 multiplied by 33
the property tax rate in effect for the taxable year beginning July 1, 2024, and 34
the estimated real property tax revenue for taxable year beginning July 1, 35
2024, from storm-damaged property based on the appraised value of the 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 671-First Edition
storm-damaged property as of January 1, 2024, multiplied by the property tax 1
rate in effect for the taxable year beginning July 1, 2024. This term applies to 2
property tax revenue losses for each taxable year, beginning on July 1, 2025, 3
until the county's next scheduled reappraisal under G.S. 105-286 as of January 4
1, 2025. 5
(5) Qualified revenue loss. – The sum of all of the following: 6
a. Property tax revenue loss. 7
b. Sales and use tax revenue loss. 8
c. Water and sewer fee revenue loss. 9
(6) Sales and use tax revenue loss. – The difference, if negative, between (i) the 10
local government's total amount of sales and use tax distributions for a quarter, 11
adjusted by the percentage change in total sales and use distributions to 12
non-Helene local governments for the same quarter, and (ii) the local 13
government's total amount of sales and use tax distributions for the same 14
quarter of the prior year, except for the fourth quarter of 2025. For the fourth 15
quarter of 2025, the difference, if negative, between (i) the local government's 16
total amount of sales and use tax distributions for that quarter, adjusted by the 17
percentage change in total sales and use distributions to non-Helene local 18
governments for the same quarter, and (ii) the local government's total amount 19
of sales and use tax distributions for the same quarter of 2023. This term 20
applies to sales and use tax revenue losses beginning with the fourth quarter 21
of 2024 and through the fourth quarter of 2025. 22
(7) Storm-damaged property. – Any real property that was revalued in accordance 23
with G.S. 105-287 and was determined to have a decrease in value, as of 24
January 1, 2025, due to the impact of Hurricane Helene. 25
(8) Water and sewer fee revenue loss. – To the extent the local government 26
operates a water and sewer system, the difference, if negative, between (i) the 27
water and sewer revenue collected for a quarter from customers that 28
experienced a service disruption due to Hurricane Helene, and (ii) the revenue 29
collected for the same quarter of the prior year from those same customers, 30
except for the fourth quarter of 2025. For the fourth quarter of 2