NORTH CAROLINA GENERAL ASSEMBLY

1979 SESSION

CHAPTER 605

HOUSE BILL 1242

AN ACT TO CLARIFY THE AD VALOREM TAXATION OF CONTRIBUTED PLANT OF PRIVATE WATER COMPANIES.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 105-277 is amended by adding a new subdivision (h) at the end thereof to read as follows:

"(h)       Private Water Companies. Contributions in aid of construction and acquisition adjustments. In assessing the property of any private water company, there shall be excluded that portion of the investment of the company represented by contributions in aid of construction and by acquisition adjustments which is designated a special class of property under Article V, Section 2(2) of the Constitution. 'Investment', 'contributions in aid of construction' and 'acquisition adjustment' shall have the meanings as those terms are defined in the Uniform System of Accounts specified by the North Carolina Utilities Commission for use by such private water company."

Sec. 2.  This act shall become effective on January 1, 1980, and it shall apply to tax years beginning on or after that date.

In the General Assembly read three times and ratified, this the 21st day of May, 1979.