Chowan Budget Delayed as State Revaluation Bill Could Push Tax Rate to 72 Cents

Chowan County delayed adoption of its FY 2026–27 budget after state legislation created uncertainty over which property values the county may use to calculate its tax rate.

The issue centers on whether Chowan County must use its 2026 Schedule of Values or revert to its 2022 Schedule of Values for budget planning.

According to Chowan County’s June 29 agenda packet, Senate Bill 889 was signed into law June 19, 2026. The county’s agenda summary says that law created a one-year moratorium on using new property revaluations in counties with populations of 15,000 or greater.

Chowan County’s population at the decennial census was listed as 13,708, which would have exempted the county from the moratorium under SB 889.

But the agenda packet said Senate Bill 474 could change that. According to the county’s summary, the latest draft of SB 474 would reduce the population threshold to 12,000. That would bring Chowan County under the moratorium and require the county to use the previous 2022 Schedule of Values for the FY 2026–27 budget.

In response to questions from Camden Tribune, Chowan County confirmed that commissioners reviewed two budget scenarios Monday night: one using the 2026 Schedule of Values and one using the 2022 Schedule of Values.

The county said the tax rate associated with the 2026 Schedule of Values scenario is 57.25 cents. The rate associated with the 2022 Schedule of Values scenario is 72 cents.

The county also provided estimated levy figures for both scenarios. According to the county, the 2022 estimated levy is $17,506,239, while the 2026 estimated levy is $17,165,751.

That is a difference of $340,488.

As of Tuesday afternoon, the county said it had been told to expect SB 474 to pass both chambers that day. If passed as written, the county said SB 474 would include Chowan County in the moratorium.

The county said no FY 2026–27 budget had been adopted as of its response. Officials said they were waiting until the end of the day’s legislative action to determine which budget schedule to adopt.

The county also said the Board of Commissioners had been meeting in open session over the past two months and that both budget scenarios had been discussed in detail. The county said the 2022 scenario was not put together until about two weeks earlier, when SB 474 regained traction.

According to the county, budget expenses are substantially the same in both scenarios.

County Manager Kevin Howard said the greatest impact of the moratorium, if SB 474 passes, would be seen in personal property tax bills.

“The greatest impact of the moratorium, with the passage of SB474, will be seen in personal property tax bills because personal property will be taxed at .72 cents on the 2022 values versus .5725 cents on the 2026 values,” Howard said in the county’s response.

Board Chair Bob Kirby also raised concern about the impact on the farming community.

“What is most unfortunate is that the farming community that owns and operates equipment worth millions of dollars will be impacted in a negative way by the legislation and this is because it is business personal property it is not subject to revaluation,” Kirby said in the response.

The county said recordings of the June 29 meeting and the reconvened June 30 meeting would be available. It also provided links to budget work sessions and finance documents from the budget process.

The June 29 agenda packet also noted that the School of Government had advised counties that may be affected by SB 474 to wait before adopting their FY 2026–27 budget ordinance until there was clarity from the legislature. The packet said state law allows counties to adopt interim appropriations for a short period of time.

The budget delay matters because the difference between using 2022 and 2026 values does not simply change a number on a spreadsheet. It affects how tax rates are set, how personal property is billed and how residents understand the cost of county government.

For Camden Tribune readers, the Chowan County situation is also a regional warning sign. State legislation can quickly affect small-county budget decisions, especially in rural counties dealing with school construction costs, public safety expenses, revaluation pressure and taxpayer concerns.

Camden Tribune will continue monitoring Chowan County’s final budget action and any state legislation affecting local budgets across northeastern North Carolina.