NORTH CAROLINA GENERAL ASSEMBLY

1967 SESSION

 

 

CHAPTER 986

HOUSE BILL 563

 

 

AN ACT TO AMEND CHAPTER 105 OF THE GENERAL STATUTES OF NORTH CAROLINA TO LEVY AN EXCISE STAMP TAX ON CONVEYANCES OF REAL ESTATE.

WHEREAS, the United States Congress has repealed the federal tax on transfers of real estate, effective January 1, 1968, in order to enable the several states, in their discretion, to enact similar laws suitable to the respective states; and

WHEREAS, the North Carolina Tax Study Commission has recommended that North Carolina enact an excise stamp tax on conveyances of real estate in order to permit the continuing study of ratios of appraisal value to market value of property subject to ad valorem taxation; and

WHEREAS, the General Assembly finds and declares that because continuing ratio studies will aid materially in equalizing property values of public utilities, will serve to verify the competence of professional appraisals used in revaluations of property, will enable tax assessors to more equitably establish standards of value, and will enable individual property owners to better appeal from local tax valuations, that the excise stamp tax, which indicates sales prices, is in the public interest: Now, therefore,

 

The General Assembly of North Carolina do enact:

 

Section 1.  Chapter 105 of the General Statutes of North Carolina is hereby amended by adding a new article thereto immediately following Article 8D, to be designated Article 8E, and to read as follows:

"Article 8E

"Excise Stamp Tax on Conveyances

"G.S. 105-228.28.  To Whom this Article Shall Apply. The provisions of this article shall apply to every person, firm, corporation, association, society or organization conveying an interest in real estate located in North Carolina other than a governmental unit and instrumentalities thereof.

"G.S. 105-228.29.  Conveyances Excluded. The provisions of this article shall not apply to transfers of an interest in real estate by operation of law, by lease for a term of years, by or pursuant to the provisions of a will, by intestacy, by gift, by merger or consolidation, or by instruments securing indebtedness, or any other transfer where no consideration in property or money is due or paid by the transferee to transferor.

"G.S. 105-228.30.  Imposition of Excise Stamp Tax. There is hereby levied an excise tax on each deed, instrument or writing by which any lands, tenements or other realty shall be granted, assigned or otherwise conveyed to, or vested in, the purchaser or purchasers, or any other person or persons. The tax imposed hereby shall be at the rate of fifty cents (50¢) on each five hundred dollars ($500.00) or fractional part thereof of the consideration or value of the interest or property conveyed (exclusive of the value of any lien or encumbrance remaining thereon at the time of sale). The tax hereby imposed and levied shall be paid by the transferor or transferors to the county wherein the real estate is situated prior to recording the instrument of conveyance; provided that, if the instrument transfers any parcel of real estate lying in two or more counties, the tax shall be paid to the county wherein the greater part of the real estate with respect to value lies. Except as otherwise hereinafter provided, the proceeds of the tax herein levied shall be retained by the county and placed in its general fund.

"G.S. 105-228.31.  Issuance of Tax Stamp. The Commissioner of Revenue shall furnish to the register of deeds of each county tax stamps to be issued upon payment of the tax herein imposed. Counties shall pay to the Commissioner a reasonable charge therefor to cover the cost of printing and handling same. Such tax stamps shall be uniform as to size and design and shall be in such form as determined by the Commissioner of Revenue and shall be valid until cancelled as hereinafter provided for.

"The register of deeds of any county is authorized to affix stamps by meter or other similar device in accordance with procedures established by the Commissioner of Revenue. Stamps affixed by such devices shall be uniform as to size and design and shall be in such form as determined by the Commissioner and cancellation as provided by this article is not required.

"G.S. 102-228.32.  Duties of Register of Deeds. The register of deeds of each county shall obtain from the Commissioner of Revenue and keep on hand an adequate supply of excise tax stamps. The register of deeds shall keep such records and otherwise account for said stamps in accordance with procedures established by the Commissioner of Revenue for the control, distribution and sale of said stamps and for the accounting for proceeds of their sale consistent with this article. Every instrument of conveyance subject to tax herein shall have affixed to the face thereof, prior to recording the same in the office of the register of deeds, the tax stamp issued pursuant to this article. The register of deeds shall cancel said stamp or stamps prior to recording by writing the date of filing on the face of said stamp or stamps.

"G.S. 102-228.33.  Taxes Recoverable by Action. Upon the failure to pay the taxes imposed by this article, they may be recovered in an action in the name of the county brought in the Superior Court of said county when the same remain unpaid for a period of 30 days after demand has been made by the register of deeds on behalf of the county therefor. In such actions, costs of court shall include a fee to the county of twenty-five dollars ($25.00) for expense of collection.

"G.S. 105-228.34.  Willful Failure to Pay Tax. Any transferor or agent of transferor of real estate willfully and knowingly failing to pay the correct amount of the tax imposed by this article or any person aiding, abetting, or directing any other person to willfully and knowingly fail to pay the correct amount of such tax shall be guilty of a misdemeanor and fined not less than one hundred dollars ($100.00) nor more than one thousand dollars ($1,000.00) for each offense.

"G.S. 105-228.35.  Administrative Provisions. The provisions of subchapter III, Article 30 of Chapter 105 of the General Statutes of North Carolina to the extent applicable shall apply to the tax imposed herein.

"G.S. 105-228.36.  Reproduction of Tax Stamps. No person, firm, or corporation shall print, engrave, or otherwise reproduce excise tax stamps except with the express permission of the Commissioner of Revenue. The unauthorized reproduction of said stamps shall be punishable as a forgery under G.S. 14-119."

Sec. 2.  Severability. If any provision of this Act, or the application thereof to any person or circumstances is held invalid, such invalidity shall not affect other provisions or applications of the Act which can be given effect without the invalid provisions or application, and to this end the provisions of this Act are declared to be severable.

Sec. 3.  All laws and clauses of laws in conflict with this Act are hereby repealed.

Sec. 4.  This Act shall become effective on January 1, 1968, and shall apply to all conveyances made on or after that date.

In the General Assembly read three times and ratified, this the 28th day of June, 1967.