A Davidson County listing usually shows an annual property tax amount. This fall, that number is tied to a set of home values that state law has already scheduled to expire.
Early in 2026, Davidson County mailed reappraisal notices valuing property as of January 1, 2026. On March 9, 2026, the county's tax administrator told FOX8 that the new values were up 65% on average. Then the General Assembly stepped in. The bills going out for the current fiscal year use the older values. The new ones take over on July 1, 2027.
For a buyer comparing Davidson County with other parts of the Triad, the tax line on a listing right now describes the past. The bill for the first full year of ownership will rest on a new value and a rate that commissioners have not yet set.
The Law That Split One Reappraisal Across Two Tax Years
Session Law 2026-8, which began as Senate Bill 889, covers counties with at least 15,000 residents and a reappraisal effective January 1, 2026. For the tax year that began July 1, 2026, those counties may not use their new schedule of values. They must use the schedule from their previous reappraisal. Starting with the tax year that begins July 1, 2027, they switch to the 2026 values and keep them until the next reappraisal.
Sen. Steve Jarvis of Davidson County sponsored the bill. His April 30 press release described it as a response to fast-rising values and concerns about tax bills, and as a way to buy lawmakers time to consider broader property tax changes. Here is how it played out:
- June 10, 2026: The General Assembly ratifies SB 889.
- June 19, 2026: Gov. Josh Stein signs it. NC Newsline reported that it covered Anson, Bladen, Buncombe, Davidson, Guilford, Harnett, Onslow, Pender and Scotland counties.
- July 7, 2026: Gov. Stein signs Senate Bill 474, which changes which counties qualify. It is chaptered as Session Law 2026-47 the next day. The NC Association of County Commissioners listed Davidson among the eight counties still covered under the revised criteria.
- July 7, 2026: WXII reported that Davidson County's tax bills would go out late because staff had to rework them to use the prior values.
- July 1, 2027: The 2026 reappraisal values become the basis for taxation.
The law also treats the county's latest reappraisal as effective January 1, 2027, when it calculates when the next one is due. So the 2026 values were not thrown out. They are on hold until next summer.
Why the Rate on Today's Bill Can't Be Used to Project Next Year's
Davidson County's proposed FY2026-27 budget gave two possible county rates. One was $0.3668 per $100, the revenue-neutral rate on the new values. The other was $0.54 per $100 if SB 889 passed and the county billed on prior-year values. The county's posted 2026 rate schedule, which is labeled tentative, lists the county-only rate at $0.5400. That is the same rate the county used in FY2025-26.
The $0.3668 figure is not a forecast. It shows roughly how far the rate would have to fall on the new values to bring in about the same revenue. A revenue-neutral rate keeps the county's total collections flat. It does not keep each household's bill flat. A home whose value rose faster than the county average pays more under a revenue-neutral rate. A home that rose more slowly pays less.
Public testimony shows what this looks like for an actual house. At the May 26, 2026 public hearing on the budget, the Wallburg fire chief told commissioners that his home's assessed value went from $261,000 to $442,000. Below is the county-only tax on that home under three rate-and-value combinations. This is arithmetic from public figures, not a projection. The 2027 rate has not been set.
| Scenario | Assessed value | County rate per $100 | County-only tax |
|---|---|---|---|
| Old values, current posted rate | $261,000 | $0.54 | $1,409.40 |
| New values, revenue-neutral rate from the proposed budget | $442,000 | $0.3668 | $1,621.26 |
| New values, rate left at $0.54 | $442,000 | $0.54 | $2,386.80 |
His value rose about 69%. The tax administrator's countywide average was 65%. Because his increase ran slightly ahead of the average, the revenue-neutral rate still raises his county bill by a little over $200. If the rate stayed at $0.54, the increase would be close to $1,000. The result for any one house depends on how far its new value sits above or below the county's overall growth, and on the rate commissioners adopt for July 2027.
Fire Districts and Towns Have the Same Two-Rate Problem
The county rate is only one line on the bill. Fire districts, towns and some school districts add their own rates, and each was budgeted against a value base that could change.
The FY2026-27 budget ordinance lists fire district rates per $100 of $0.1049 for Midway, $0.0913 for Wallburg and $0.0848 for Welcome. The county's tentative 2026 rate schedule lists higher numbers for the same districts: $0.1460 for Midway Fire, $0.1312 for Wallburg Fire and $0.1240 for Welcome Fire. It also notes that Gumtree Fire merged into Midway Fire effective July 1, 2025. The documents do not explain the gap. The pattern matches the county rate, though. The lower figures fit the new value base, and the higher figures fit the older values now in use.
Fire chiefs told commissioners in May why these rates matter to them. Welcome Fire and Rescue reported a 38% rise in call volume over the past decade and five new residential developments of 80 to 100 homes each underway in its district. Several departments asked to stay above revenue-neutral to pay for full-time staff. These requests will come back when rates are set against the new values next year.
Cities have the same gap. Lexington's proposed budget, dated May 26, 2026, estimated that assessed value inside the city would rise from about $1.77 billion to $3.17 billion, an increase of 79.1%. It proposed a $0.55 city rate against an estimated revenue-neutral rate of about $0.36. The budget message said amendments might be needed if SB 889 materially changed revenue. The county's tentative 2026 schedule lists the City of Lexington at $0.6500. Wallburg and Midway each have a town rate of $0.0500.
The Appeal Window Stays Open Into 2027
The delay also changes the appeal calendar. Under the law, an owner could appeal a 2026 appraisal during calendar year 2026. An owner who didn't can appeal in calendar year 2027 as though the appraisal took effect January 1, 2027. Any adjustment from an appeal applies to the tax year beginning July 1, 2027.
This matters for a sale. When a house changes hands this fall, the January 1, 2026 value attached to the parcel is the value that will drive next year's bill. As written, the law ties the 2027 appeal opportunity to the property and the county, not to whoever owned it when the notice arrived. A buyer who closes in November takes over a parcel whose new value nobody has acted on yet. The county's procedures and deadlines govern how an appeal works. This post covers only the timing the statute sets.
To see the value behind a specific parcel, WXII reported that Davidson County offers an online Tax Bill Estimator. You enter a tax parcel number, and it works for real property accounts only. The county's reappraisal page now carries the heading "Postponed Until 2027."
Frequently Asked Questions
Does the freeze mean Davidson County values went back down? No. The January 1, 2026 values are still on record. State law only controls which schedule of values is used for each tax year. The older schedule applies to the year that began July 1, 2026, and the 2026 schedule applies starting July 1, 2027.
Is the $0.54 county rate final? The county's posted 2026 rate schedule lists $0.5400 and is labeled tentative. The rate for the tax year beginning July 1, 2027, will be set in next year's budget.
Did the follow-up bill take Davidson County out of the moratorium? SB 474 changed the eligibility criteria and became law on July 7, 2026. The NC Association of County Commissioners' July 2 summary listed Davidson among the counties still covered.
Does this affect Guilford County too? Guilford was on the original SB 889 list and on NCACC's list of counties covered after SB 474. The same timing applies there, but the rates and values are Guilford's own.
If you're weighing a home in Midway, Wallburg, Welcome or Lexington, Gray France Realty Group can pull the parcel's January 1, 2026 value and the district rates that apply to it. That way you can compare the bill on the listing with the value that takes over next July before you write an offer. Buy with Confidence. Sell with Strategy. Invest with Insight.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
