GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999
SESSION LAW 2000-20
The General Assembly of North Carolina enacts:
Section 1. G.S. 131A-21 reads as rewritten:
"§ 131A-21. Tax exemption.
The exercise of the powers granted by this Chapter will be in
all respects for the benefit of the people of the State and will promote their
health and welfare, and no tax or assessment shall be levied upon any health
care facilities undertaken by the Commission prior to the retirement or
provision for the retirement of all bonds or notes issued and obligations
incurred by the Commission in connection with such health care facilities. welfare.
If bonds or notes are issued by the Commission to provide or improve a health
care facility, then until the bonds or notes are retired, the facility for
which bonds or notes are issued is exempt from property taxes to the extent
provided in this section. If refunding bonds or notes are issued to
refund bonds or notes issued to provide or improve a health care facility, the
facility will continue to be exempt from property taxes as provided in this
section until such time as the refunding bonds or notes are retired, provided
that the final maturity of the refunding bonds or notes does not extend beyond
the final maturity of the original bonds or notes.
The property tax exemption under this section shall not exceed the lesser of the original principal amount of the bonds or notes or the assessed value for ad valorem tax purposes of the facility. If bonds or notes are issued to finance more than one health care facility, only that portion of the principal amount of the bonds or notes used to provide or improve the particular facility, including any allocable reserves and financing costs, may be considered for the purpose of determining the amount of the exemption allowable under this section. The exemption authorized by this section shall begin with the first full tax year of the taxpayer following the issuance of the bonds and notes. This section does not affect a health care facility's eligibility for a property tax exemption under Subchapter II of Chapter 105 of the General Statutes.
Any bonds or notes issued by the Commission under the provisions
of this Chapter shall at all times be free from taxation by the State or any
local unit or political subdivision or other instrumentality of the State,
excepting inheritance inheritance, estate, or gift taxes, income
taxes on the gain from the transfer of the bonds and notes, and franchise
taxes. The interest on the bonds and notes is not subject to taxation as
income."
Section 2. Subsection (e) of Section 29A.18 of Chapter 212 of the 1998 Session Laws reads as rewritten:
"(e) Subsection (a) of this
section is effective for taxes imposed for taxable years beginning on or after
July 1, 1998. Notwithstanding the provisions of G.S. 105-282.1(a), an
application for the benefit provided in subsection (a) of this section for the
1998-99 tax year is timely if it is filed on or before November 15, 1998.
Subsection (a) of this section G.S. 105-278.6A is repealed
effective for taxes imposed for taxable years beginning on or after July 1, 2000.
2001. The remainder of this section is effective when it becomes
law."
Section 3. Section 1 of this act becomes effective October 1, 2000, and applies to bonds or notes issued on or after that date. Section 2 of this act becomes effective July 1, 2000. The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 20th day of June, 2000.
s/ Dennis A. Wicker
President of the Senate
s/ James B. Black
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Governor
Approved 1:57 p.m. this 26th day of June, 2000