AN ACT TO MODIFY WHEN LAND USED FOR CONSERVATION PURPOSES IS TO BE EXCLUDED FROM THE PROPERTY TAX BASE. Summarized in Daily Bulletin 3/15/11 and 6/2/11. Enacted June 23, 2011. Effective for taxes imposed for taxable years beginning on or after July 1, 2011.
Summary date: Jun 30 2011 - View summary
Bill H 350 (2011-2012)Summary date: Jun 2 2011 - View summary
House committee substitute makes the following changes to the 1st edition. Rewrites GS 105-275(12) to exclude from the tax base real property that is owned by a nonprofit corporation or association organized to receive and administer lands for conservation purposes, is exclusively held and used for one or more of the purposes listed and detailed in the subdivision, and produces no income or produces income that is incidental to and not inconsistent with the purpose or purposes for which the land is held and used. Provides that the taxes otherwise due on such land is a lien on the real property of the taxpayer as provided in GS 105-355(a) and specifies when the liens are extinguished. Requires the taxes be carried forward in the records of the taxing units or units as deferred taxes. Provides that the deferred taxes for the preceding five fiscal years are due and payable in accordance with GS 105-277.1F when the property loses its eligibility for deferral as a result of a disqualifying event. Details disqualifying events.
Deletes proposed GS 105-275(29b) concerning real property owned or held by a nonprofit land conservation organization for land conservation purposes. Makes clarifying and organizational changes to GS 105-277.1F(a). Makes conforming changes to the bill title.
Bill H 350 (2011-2012)Summary date: Mar 15 2011 - View summary
GS 105-275 currently designates several classes of property as special classes under Article V, Sec. 2(2), of the NC Constitution and, as such, they are exempt from property taxes. Act amends subsection (12) to include real property owned by a nonprofit corporation or association primarily (was, exclusively) held for (a) educational and scientific purposes as a protected natural area or (b) for one or more of the conservation purposes required for donated property to qualify for a credit pursuant to GS 105-151.12. Also makes technical changes to subsection (12).
Act also adds new subsection (29b) to exempt real property that is (a) owned by a nonprofit land conservation corporation and held exclusively for sale under a conservation agreement or (b) held by a nonprofit land conservation corporation for future sale or transfer to a local, state, or federal government unit for conservation purposes. Property may be classified under these two new exemptions for up to five years and if the property is not sold or transferred as required, the taxes are due and payable in accordance with GS 105-277.1F. Makes conforming changes to GS 105-277.1F(a).
Effective for taxes imposed for taxable years beginning on or after July 1, 2011.