GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2007
S 3
SENATE BILL 1309
Finance Committee Substitute
Adopted 7/30/07
Third Edition Engrossed 8/2/07
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Short Title: Fairness in PT Values/Lien on Mobile Home. |
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Sponsors: |
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Referred to: |
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March 26, 2007
A BILL TO BE ENTITLED
AN ACT RELATING TO PROPERTY TAX VALUATION OF LOW AND MODERATE INCOME HOUSING, TO REDUCE THE DISCREPANCY BETWEEN THE PROPERTY TAX value of property and its market value and to treat mobile homes the same as other homes with respect to property tax liens.
The General Assembly of North Carolina enacts:
SECTION 0.9. G.S. 105-283 reads as rewritten:
"§ 105-283. Uniform appraisal standards.
(a) All property, real and personal, shall as far as practicable be appraised or valued at its true value in money. When used in this Subchapter, the words "true value" shall be interpreted as meaning market value, that is, the price estimated in terms of money at which the property would change hands between a willing and financially able buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of all the uses to which the property is adapted and for which it is capable of being used. For the purposes of this section, the acquisition of an interest in land by an entity having the power of eminent domain with respect to the interest acquired shall not be considered competent evidence of the true value in money of comparable land.
(b) Property that meets all of the conditions provided in this subsection is designated a special class of property pursuant to Section 2(2) of Article V of the North Carolina Constitution and shall be appraised as provided in this subsection. In the case of real property that meets all of the following conditions, the effect of rent restrictions and income restrictions on the true value of the property shall be taken into account for purposes of valuation under this Subchapter:
(1) The property is subject to restriction on the income eligibility of tenants to whom it is leased or on the rents that may be charged pursuant to any State or federal government program providing for tax incentives, grants, interest subsidies, or loans.
(2) The property is in compliance with the terms, covenants, and conditions of such State or federal government program.
In addition, the value of the tax incentives, grants, interest subsidies, or loans provided to the property or the owner of the property shall be ignored for purposes of valuation under this Subchapter."
SECTION 1. G.S. 105-286 reads as rewritten:
"§ 105-286. Time for general reappraisal of real property.
(a) Octennial Quadrennial
Plan. - Unless the date shall be advanced postponed as
provided in subdivision (a)(2), below, each county of the State, as of January
1 of the year prescribed in the schedule set out in subdivision (a)(1), below,
and every eighth fourth year thereafter, shall reappraise all
real property in accordance with the provisions of G.S. 105-283 and 105-317.
(1) Schedule of Initial Reappraisals. -
Division One - 1972: Avery, Camden, Cherokee, Cleveland, Cumberland, Guilford, Harnett, Haywood, Lee, Montgomery, Northampton, and Robeson.
Division Two - 1973: Caldwell, Carteret, Columbus, Currituck, Davidson, Gaston, Greene, Hyde, Lenoir, Madison, Orange, Pamlico, Pitt, Richmond, Swain, Transylvania, and Washington.
Division Three - 1974: Ashe, Buncombe, Chowan, Franklin, Henderson, Hoke, Jones, Pasquotank, Rowan, and Stokes.
Division Four - 1975: Alleghany, Bladen, Brunswick, Cabarrus, Catawba, Dare, Halifax, Macon, New Hanover, Surry, Tyrrell, and Yadkin.
Division Five - 1976: Bertie, Caswell, Forsyth, Iredell, Jackson, Lincoln, Onslow, Person, Perquimans, Rutherford, Union, Vance, Wake, Wilson, and Yancey.
Division Six - 1977: Alamance, Durham, Edgecombe, Gates, Martin, Mitchell, Nash, Polk, Randolph, Stanly, Warren, and Wilkes.
Division Seven - 1978: Alexander, Anson, Beaufort, Clay, Craven, Davie, Duplin, and Granville.
Division Eight - 1979: Burke, Chatham, Graham, Hertford, Johnston, McDowell, Mecklenburg, Moore, Pender, Rockingham, Sampson, Scotland, Watauga, and Wayne.
(2) Advancing Scheduled
Octennial Reappraisal. - Any county desiring to conduct a reappraisal of real
property earlier than required by this subsection (a) may do so upon adoption
by the board of county commissioners of a resolution so providing. A copy of
any such resolution shall be forwarded promptly to the Department of Revenue.
If the scheduled date for reappraisal for any county is advanced as provided
herein, real property in that county shall thereafter be reappraised every
eighth year following the advanced date unless, in accordance with the
provisions of this subdivision (a)(2), an earlier date shall be adopted by
resolution of the board of county commissioners, in which event a new schedule
of octennial reappraisals shall thereby be established for that county.Postponing
Scheduled Quadrennial Reappraisal. - If, at the time for reappraisal of real
property as required by subsection (a), the sales assessment ratio defined in
G.S. 105-289(h) exceeds .90 for a county, that county may postpone a
reappraisal of real property upon adoption by the board of county commissioners
of a resolution until the time for the next subsequent reappraisal of real
property as required by subsection (a) for that county. A county passing a
resolution under this subsection shall promptly submit a copy to the Department
of Revenue.
(b) Fourth-Year
Horizontal Adjustments. - As of January 1 of the fourth year following a
reappraisal of real property conducted under the provisions of subsection (a),
above, each county shall review the appraised values of all real property and
determine whether changes should be made to bring those values into line with
then current true value. If it is determined that the appraised value of all
real property or of defined types or categories of real property require such
adjustment, the assessor shall revise the values accordingly by horizontal
adjustments rather than by actual appraisal of individual properties: That is,
by uniform application of percentages of increase or reduction to the appraised
values of properties within defined types or categories or within defined
geographic areas of the county.
(c) Value to Be Assigned
Real Property When Not Subject to Appraisal. - In years in which real property
within a county is not subject to reappraisal under subsections (a) or (b), subsection
(a), above, or under G.S. 105-287, it shall be listed at the value
assigned when last appraised under this section or under G.S. 105-287."
SECTION 2. G.S. 105-287 reads as rewritten:
"§ 105-287.
Changing appraised value of real property in years in which general reappraisal
or horizontal adjustment is not made.
(a) In a year in which a
general reappraisal or horizontal adjustment of real property in the
county is not made, the assessor shall increase or decrease the appraised value
of real property, as determined under G.S. 105-286, to recognize a
change in the property's value resulting from one or more of the reasons listed
in this subsection. The reason necessitating a change in the property's value
need not be under the control of or at the request of the owner of the affected
property.to accomplish any one or more of the following:
(1) Correct a clerical or mathematical error.
(2) Correct an appraisal
error resulting from a misapplication of the schedules, standards, and rules
used in the county's most recent general reappraisal or horizontal
adjustment.reappraisal.
(2a) Recognize an increase or decrease in the value of the property resulting from a conservation or preservation agreement subject to Article 4 of Chapter 121 of the General Statutes, the Conservation and Historic Preservation Agreements Act.
(2b) Recognize an increase or
decrease in the value of the property resulting from a physical change to the
land or to the improvements on the land, other than a change listed in
subsection (b) of this section.Recognize a change in whether the
property meets the conditions of G.S. 105-283(b).
(2c) Recognize an increase or
decrease in the value of the property resulting from a change in the legally
permitted use of the property.
(3) Recognize an increase or decrease in the value of the property resulting from a factor other than one listed in subsection (b).
(b) In a year in which a
general reappraisal or horizontal adjustment of real property in the
county is not made, the assessor may not increase or decrease the appraised
value of real property, as determined under G.S. 105-286, to recognize a
change in value caused by:
(1) Normal, physical depreciation of improvements;
(2) Inflation, deflation, or other economic changes affecting the county in general; or
(3) Betterments to the property made by:
a. Repainting buildings or other structures;
b. Terracing or other methods of soil conservation;
c. Landscape gardening;
d. Protecting forests against fire; or
e. Impounding water on marshland for non-commercial purposes to preserve or enhance the natural habitat of wildlife.
(c) An increase or
decrease in the appraised value of real property authorized by this section shall
be made in accordance with the schedules, standards, and rules used in the
county's most recent general reappraisal or horizontal adjustment.reappraisal.
An increase or decrease in appraised value made under this section is effective
as of January 1 of the year in which it is made and is not retroactive. This
section does not modify or restrict the provisions of G.S. 105-312
concerning the appraisal of discovered property.
(d) Notwithstanding subsection (a), if a tract of land has been subdivided into lots and more than five acres of the tract remain unsold by the owner of the tract, the assessor may appraise the unsold portion as land acreage rather than as lots. A tract is considered subdivided into lots when the lots are located on streets laid out and open for travel and the lots have been sold or offered for sale as lots since the last appraisal of the property."
SECTION 3. G.S. 105-355 reads as rewritten:
"§ 105-355. Creation of tax lien; date as of which lien attaches.
(a) Lien on Real Property. - Regardless of the time at which liability for a tax for a given fiscal year may arise or the exact amount thereof be determined, the lien for taxes levied on a parcel of real property shall attach to the parcel taxed on the date as of which property is to be listed under G.S. 105-285, and the lien for taxes levied on personal property shall attach to all real property of the taxpayer in the taxing unit on the same date. All penalties, interest, and costs allowed by law shall be added to the amount of the lien and shall be regarded as attaching at the same time as the lien for the principal amount of the taxes. For purposes of this subsection (a):
(1) Taxes levied on real property listed in the name of a life tenant under G.S. 105-302 (c)(8) shall be a lien on the fee as well as the life estate.
(2) Taxes levied on improvements on or separate rights in real property owned by one other than the owner of the land, whether or not listed separately from the land under G.S. 105-302 (c)(11), shall be a lien on both the improvements or rights and on the land.
(b) Lien on Mobile Home Listed as Personal Property. - The lien for taxes levied on a mobile home listed as personal property shall attach to the mobile home and to all real property of the taxpayer in the taxing unit on the date as of which property is to be listed under G.S. 105-285.
(b)(c) Lien on Personal Property. - Taxes
levied on real and personal property (including penalties, interest, and costs
allowed by law) shall be a lien on personal property from and after levy or
attachment and garnishment of the personal property levied upon or
attached."
SECTION 4. This act is effective for taxes imposed for taxable years beginning on or after July 1, 2008. The reappraisal schedule in G.S. 105-286, determined without regard to the amendment to that statute made by Section 1 of this act, applies to a county until the county conducts its next general reappraisal. When a county conducts its next general reappraisal, the schedule in G.S. 105-286, as amended by Section 1 of this act, applies to that county.