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 made on the property, or the construction of a new single‑family 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
	 Governor

Approved 11:49 a.m. this 23rd day of August, 2021