MODIFY PUV EXCEPTIONS TO DISQUALIFICATION.

View NCGA Bill Details2015-2016 Session
House Bill 533 (Public) Filed Wednesday, April 1, 2015
AN ACT TO MODIFY WHEN THE LIEN FOR DEFERRED TAXES ON LAND ELIGIBLE FOR PRESENT‑USE VALUE CLASSIFICATION IS EXTINGUISHED IN ORDER TO PROMOTE SALES FOR LAND CONSERVATION USES AND TO ALLOW A TAXPAYER TO CONTEST A DENIAL OF A CLAIM FOR REFUND WHICH THE DEPARTMENT OF REVENUE DETERMINES TO BE OUTSIDE THE STATUTE OF LIMITATIONS.
Intro. by McGrady, Setzer, Jordan, Harrison.

Status: Ch. SL 2016-76 (House Action) (Jun 30 2016)
H 533/S.L. 2016-76

Bill Summaries:

  • Summary date: Jul 7 2016 - More information

    AN ACT TO MODIFY WHEN THE LIEN FOR DEFERRED TAXES ON LAND ELIGIBLE FOR PRESENT‑USE VALUE CLASSIFICATION IS EXTINGUISHED IN ORDER TO PROMOTE SALES FOR LAND CONSERVATION USES AND TO ALLOW A TAXPAYER TO CONTEST A DENIAL OF A CLAIM FOR REFUND WHICH THE DEPARTMENT OF REVENUE DETERMINES TO BE OUTSIDE THE STATUTE OF LIMITATIONS. Enacted June 30, 2016. Section 1 is effective for taxes imposed for taxable years beginning on or after July 1, 2016. The remainder is effective June 30, 2016.


  • Summary date: Jun 24 2016 - More information

    Senate committee substitute makes the following changes to the 2nd edition.

    Section 1

    Amends the proposed revision to subsection (d) of GS 105-277.4, concerning deferred taxes of agricultural, horticultural, and forest land, to additionally delete language which provided that if the property is conveyed by gift to the State, a political subdivision of the State, or the United States, then no deferred taxes were due and the lien for deferred taxes was extinguished. Makes conforming and technical changes to subsection (d).

    Amends proposed subsection (d1) to establish that, if a property loses its eligibility for present-use value classification due to conveyance to a nonprofit organization and qualifies for exclusion from the tax base, or due to conveyance to the State, a political subdivision, or the United States (previously, conveyance to the State, a political subdivision, or the United States was provided for in subsection (d)), then deferred taxes are due as specified in subdivisions (1) and (2) of proposed subsection (d1).

    Effective for taxable years beginning on or after July 1, 2016 (previously, July 1, 2015).

    Section 2

    Amends GS 105-241.7, which sets out the procedure for obtaining a refund from the Department of Revenue (Department), by adding a new subsection to require the Department to deny a refund and send the taxpayer a notice of denial when the taxpayer filed an amended return or a claim for refund that the Department determines to be outside the statute of limitations.

    Amends GS 105-241.15, which provides for a contested case hearing on the Department's final determination, to move the existing language of the statute to new subsection (a), Contest Final Determination. Adds new subsection (b), Contest Statute of Limitations, to provide for a contested case hearing on the Department's statute of limitations determination. Allows a taxpayer to contest a statute of limitations determination in a notice of denial issued by the Department pursuant to GS 105-241.7(c1), as enacted by the act, by filing a petition for a contested case hearing at the Office of Administrative Hearings in accordance with Article 3 of GS 150B (APA) on the sole issue of whether the statute of limitations bars the taxpayer's claim. Provides that the final decision by the administrative law judge regarding the statute of limitations is subject to judicial review under Article 4 of GS Chapter 150B (Judicial Review under the APA) and GS 105-241.16 (provisions for judicial review of decision after contested case hearing). 

    Requires the administrative law judge to remand the matter to the Department if judicial review is not sought and the final decision is that the taxpayer's claim was not barred by the statute of limitations. Requires the matter to be remanded to the Department if judicial review is sought and it is finally determined that the taxpayer's claim was not barred by the statute of limitations. Directs that any remand is to be regarded as a new amended return or claim for refund timely filed within the statute of limitations under GS 105-241.7(c).

    Allows a taxpayer to contest a determination issued prior to the enactment of the statute that an amended return or claim for refund was filed outside of the statute of limitations if: (1) the Department determined that the amended return or claim for refund was filed outside the statute of limitations, defined to mean a notice of denial issued by the Department and (2) the taxpayer contests the statute of limitations determination in accordance with GS 105-241.15(b), as enacted by the act, within 60 days of the enactment of the act. 


  • Summary date: May 12 2015 - More information

    House committee substitute to the 1st edition makes a clarifying change in GS 105-277.4(f).


  • Summary date: Apr 2 2015 - More information

    Amends GS 105-277.4 concerning deferred taxes of agricultural, horticultural, and forest land, deleting language which provided that if a property lost its eligibility for present-use value classification because it was conveyed by gift to a nonprofit organization and qualifies for exclusion from the tax base, then no deferred taxes were due and the lien for deferred taxes was extinguished. 

    Adds new provision to GS 105-277.4 concerning the conveyance of property eligible for present-use value classification to a nonprofit, providing that if the property is then used in a way that qualifies it for exclusion from the tax base then deferred taxes are due as follows: (1) if the property is conveyed at or below present-use value, then no deferred taxes are due and the lien for the deferred taxes is extinguished or (2) if the property is conveyed for more than the present-use value, then a portion of the preceding three fiscal years of deferred taxes will be due in accordance to the provisions in GS 105-277.1F. Sets out how to calculate the amount owed, either being equal to or lesser of the full amount deferred or the deferred amount multiplied by a fraction as specified. 

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


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