EXEMPT BUILDERS' INVENTORY.

View NCGA Bill Details2015-2016 Session
House Bill 168 (Public) Filed Thursday, March 5, 2015
AN ACT TO EXEMPT FROM PROPERTY TAX THE INCREASE IN VALUE OF REAL PROPERTY HELD FOR SALE BY A BUILDER, TO THE EXTENT THE INCREASE IS ATTRIBUTABLE TO SUBDIVISION OR IMPROVEMENTS BY THE BUILDER.
Intro. by Hager, Millis, Brody, Collins.

Status: Ch. SL 2015-223 (House Action) (Aug 18 2015)

SOG comments (3):

Identical Bill

Identical to S 321 filed on 3/17/15.

Title Change.

House committee substitute changes the long title. The previous long title follows below:

AN ACT TO EXEMPT FROM PROPERTY TAX THE INCREASE IN VALUE OF REAL PROPERTY HELD FOR SALE BY A BUILDER, TO THE EXTENT THE INCREASE IS ATTRIBUTABLE TO SUBDIVISION OR IMPROVEMENTS BY THE BUILDER.

Change Long Title

Senate committee substitute to 2nd edition changed long title.  Long title was AN ACT TO EXEMPT FROM PROPERTY TAX THE INCREASE IN VALUE OF RESIDENTIAL REAL PROPERTY HELD FOR SALE BY A BUILDER, TO THE EXTENT THE INCREASE IS ATTRIBUTABLE TO SUBDIVISION OR IMPROVEMENTS BY THE BUILDER.

Bill History:

H 168/S.L. 2015-223

Bill Summaries:

  • Summary date: Aug 24 2015 - More information

    AN ACT TO EXEMPT FROM PROPERTY TAX THE INCREASE IN VALUE OF REAL PROPERTY HELD FOR SALE BY A BUILDER, TO THE EXTENT THE INCREASE IS ATTRIBUTABLE TO SUBDIVISION OR IMPROVEMENTS BY THE BUILDER. Enacted August 18, 2015. Effective for taxes imposed for taxable years beginning on or after July 1, 2016, and applies to subdivision or other improvements made on or after July 1, 2015.


  • Summary date: Jun 30 2015 - More information

    Senate committee substitute makes the following changes to the 3rd edition.

    Amends the long title. 

    Amends proposed GS 105-277.02 concerning real property held for sale but classified for taxation at reduced valuation, providing that increases in value of such property attributable to the subdivision of, improvements other than buildings, or the construction of either a new single-family residence or a duplex on the property by the builder are excluded from property taxation as long as the builder continues to hold the property for sale (previously, only excluded increases in value due to the construction of a new single-family residence or a duplex on the property by the builder). Enacts new subsection (b) concerning commercial property, providing that commercial real property held for sale by a builder is designated a special class of property pursuant to Article V of the NC Constitution. Defines commercial real property as real property that is to be sold and used for commercial purposes immediately or after improvement. Provides that increases in value of such property attributable to subdivision of or other improvements made by the builder are excluded from property taxation as long as the builder continues to hold the property for sale. Provides for the termination of the exclusion at the earlier of (1) five years from the time the improved property was first subject to taxation, (2) the issuance of a building permit, or (3) the sale of the property. 


  • Summary date: Jun 17 2015 - More information

    House amendments makes the following changes to the 2nd edition.

    Amendment #1

    Amends the definition of residential real property as provided in proposed GS 105-277.02, establishing that the term excludes property that is occupied or used for commercial purposes such as residences shown to prospective buyers as models. 

    Amends the effective date clause to provide that the bill applies to subdivision or other improvements made on or after July 1, 2015.

    Amendment #2

    Amends proposed GS 105-277.02 to provide that any increase in value of property classified pursuant to this section that is attributable to the construction of a new single-family residence or a duplex on the property by the builder is excluded from taxation for as long as the builder continues to hold the property for sale (previously, provided that increases in value of such property attributable to subdivision or other improvements made by the builder are excluded from property taxation as long as the builder continues to hold the property for sale).

    Amendment #3

    Amends amendment #1 providing that the definition of residential real property, as provided in proposed GS 105-277.02, excludes property that is either occupied by a tenant, or used for commercial purposes such as residences shown to prospective buyers as models (previously, excluded property that is occupied or used for commercial purposes such as residences shown to prospective buyers as models).


  • Summary date: Jun 16 2015 - More information

    House committee substitute makes the following changes to the 1st edition.

    Amends the long title. 

    Amends proposed GS 105-277.02 to provide that the statute applies to residential real property (previously, provided that it applied to all real property for sale by a builder). Defines residential real property for purposes of this statute.

    Deletes proposed changes made to GS 105-287(d).

    Amends the effective date of the act, providing that it is effective July 1, 2016 (was, July 1, 2015). 


  • Summary date: Mar 5 2015 - More information

    Enacts new GS 105-277.02, certain real property held for sale classified for taxation at reduced valuation, providing that real property held for sale by a builder is designated a special class of property pursuant to Article V of the NC Constitution. Provides that increases in value of such property attributable to subdivision or other improvements made by the builder are excluded from property taxation as long as the builder continues to hold the property for sale. Further provides that this exclusion cannot exceed five years from the time the improved property was first subject to taxation. Provides that to receive this exclusion, a builder must apply annually as provided in GS 105-282.1. Directs tax assessors to specify what portion of the value is an increase attributable to subdivision or other builder improvements. 

    Amends GS 105-287(d) to require tax assessors to appraise unsold portions of land as land acreage instead of lots if a tract of land has been subdivided into lots yet more than five acres of the tract remain unsold (previously, a tax assessor could appraise the land acreage but was not required to do so).

    Amends the definition of builder in GS 105-273 to no longer require licensing as a general contractor.

    Effective for taxes imposed for taxable years beginning on or after July 1, 2015. 


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