GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION LAW 2021-113
HOUSE BILL 273
AN ACT to exempt from property tax the increase in value of PROPERTY due to the CONSTRUCTION of townhouses held for sale by a builder.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105‑277.02(a) reads as rewritten:
"(a) Residential Real
Property. – Residential real property held for sale by a builder is designated
a special class of property under authority of Article V, Sec. 2(2) of the
North Carolina Constitution. For purposes of this subsection, "residential
real property" is real property that is intended to be sold and used as an
individual's residence immediately or after construction of a residence, and
the term excludes property that is either occupied by a tenant or used for
commercial purposes such as residences shown to prospective buyers as models.
Any increase in value of this classified property attributable to subdivision
of the property, improvements other than buildings, buildings
made on the property, or the construction of either a new single‑family
residence residence, a townhouse, or a duplex on the property by
the builder is excluded from taxation under this Subchapter as long as the
builder continues to hold the property for sale. In no event shall this
exclusion extend for more than three years from the time the improved property
was first subject to being listed for taxation by the builder."
SECTION 2. This act is effective for taxes imposed for taxable years beginning on or after July 1, 2022.
In the General Assembly read three times and ratified this the 16th day of August, 2021.
s/ Ralph Hise
Presiding Officer of the Senate
s/ Mike Clampitt
Presiding Officer of the House of Representatives
s/ Roy Cooper
Approved 11:49 a.m. this 23rd day of August, 2021