Senate committee substitute to the 1st edition makes the following changes.

Section 1.

Amends new GS 159-13.3 (adopting a tax rate exceeding the revenue neutral tax rate) as follows: (1) reduces the notice period before the public hearing to 14 days, and now requires the notice to be sent directly to each taxpayer with property in the jurisdiction by first-class mail to the taxpayer's last known address or electronically if the taxpayer has consented to receive notice by electronic means (was, governing body had to notify county clerk 30 days before the hearing and the clerk had to send out notices at least 10 days before the hearing); (2) adds provisions specifying that if a governing body adopts a property tax rate at or below the revenue-neutral tax rate in its budget ordinance, but then seeks to amend the budget ordinance to increase the property tax rate above the revenue-neutral tax rate due to the local government receiving revenues that are substantially less than the amount anticipated, the governing body must hold a separate public hearing prior to amending the budget to adopt the increased property tax rate; (3) requires majority approval, as described, for decisions to amend the budget as specified above; (4) clarifies that tax refunds under the statute are considered lawfully-issued refunds; and (5) specifies that the statute does not apply when a governing board must amend its budget to increase or reduce a property tax levy or in any manner alter a property taxpayer's liability by order of a court of competent jurisdiction, or by a State agency having the power to compel the levy of taxes by the governing board.

Section 3 (new).

Amends GS 105-380(a) to recognize that the governing board of a taxing unit can release the taxes as described when authorized to do so by new GS 159-13.3.

Section 4 (new).

Makes a conforming change to GS 159-15 (amendments to the budget ordinance) to account for new procedure in GS 159-13.3. Applies to amendments to budget ordinances adopted for fiscal years beginning on or after July 1, 2027.

Makes conforming organizational changes to account for newly inserted sections.