Chowan County Explains Budget Decision as SB 474 Looms

EDENTON, N.C. — Chowan County has released a detailed Frequently Asked Questions document explaining why commissioners adopted the county's Fiscal Year 2026–27 budget using the 2026 property reappraisal values, despite pending legislation in Raleigh that could soon require the budget to be rewritten.

The FAQ comes after several days of public discussion surrounding Senate Bill 474, legislation that passed the North Carolina General Assembly on July 1 and would place Chowan County back under the state's property tax reappraisal moratorium if it becomes law.

According to county officials, the legislation would require the county to abandon its newly adopted tax base and amend the budget using 2022 property values instead.

Governor Josh Stein now has ten days to sign the legislation, veto it, or allow it to become law without his signature. Until then, county officials say the budget adopted on June 30 remains the legally effective budget.

Previous Reporting

Camden Tribune has closely followed this developing story over the past week.

On June 29, commissioners recessed a special budget meeting while waiting to see whether the North Carolina General Assembly would complete action on Senate Bill 474 before the statutory June 30 budget deadline.

READ MORE: Chowan Budget Vote Recessed as Officials Await State Revaluation Bill

After lawmakers failed to act before the deadline, commissioners approved the FY 2026–27 budget using the 2026 Schedule of Values. Camden Tribune later reported that if SB 474 ultimately becomes law, the county may have to amend that budget and increase the tax rate to approximately 72 cents while reverting to 2022 property values.

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

Why Did the County Adopt the Budget?

One of the biggest questions from taxpayers has been why county commissioners adopted the budget if they knew Senate Bill 474 was still moving through the General Assembly.

According to the county's FAQ, North Carolina law requires every county to adopt a balanced budget no later than June 30 each year.

At the time commissioners voted, the 2026 property reappraisal values remained the only legally authorized tax base available.

County officials said they intentionally delayed adopting the budget several times—including recessing a special meeting from June 29 until June 30—in hopes lawmakers would complete action before the deadline. That action never occurred before the county was legally required to adopt its budget.

Officials also say they could not legally prepare the budget using the older 2022 property values because those values were not authorized under state law at the time the budget was adopted.

What Happens if Senate Bill 474 Becomes Law?

If Governor Josh Stein signs Senate Bill 474—or if it becomes law without his signature—county officials say commissioners will be required to amend the FY 2026–27 budget.

According to the county, that process would include:

• Reverting to the 2022 Schedule of Values.
• Calculating a new tax rate necessary to balance the budget.
• Advertising and holding a public hearing before approving the amended budget.

Understanding the Proposed 72-Cent Tax Rate

Perhaps the largest point of confusion has been the proposed increase from 57.25 cents to 72 cents.

County officials emphasize that comparing those numbers by themselves does not tell the whole story.

The current 57.25-cent rate is based on the higher 2026 property values. If SB 474 becomes law, the proposed 72-cent rate would instead apply to the lower 2022 property values.

Officials say the higher tax rate is intended to generate approximately the same revenue needed to fund county services and should not automatically be viewed as a direct 14.75-cent tax increase. The impact on individual property owners will depend on how their property's assessed value changes under the older valuation schedule.

Timeline of Events

• June 29: Commissioners recess a special budget meeting while awaiting action from the General Assembly.
• June 30: State law requires counties to adopt a balanced budget. Chowan County approves its FY 2026–27 budget using the 2026 Schedule of Values.
• July 1: The North Carolina General Assembly gives final approval to Senate Bill 474.
• Next: Governor Josh Stein has ten days to sign, veto, or allow the legislation to become law.

What Residents Should Do

County officials say residents do not need to take any action at this time.

If Senate Bill 474 becomes law, Chowan County says it will advertise a public hearing before adopting an amended budget and revised property tax rate.

The county says additional information will be provided as the process moves forward.

Why This Matters

The county's FAQ provides additional context for a budget process that has generated widespread questions from taxpayers over the past week.

While the budget adopted on June 30 remains valid under current law, action by Governor Josh Stein could require commissioners to revisit one of the county's most significant financial decisions of the year.

For property owners, the coming days will determine which property values are ultimately used to calculate property taxes—and what final tax rate will fund county government during Fiscal Year 2026–27.

Camden Tribune will continue following Governor Stein's decision on Senate Bill 474, any public hearings scheduled by Chowan County, and future developments affecting local taxpayers.