AN ACT TO PROVIDE RELIEF FROM PROPERTY TAX LIABILITY FOR COVID-19 AFFECTED BUSINESSES.
Allows qualifying property owners to be granted a deferment on 2020 property tax collection for the time period running from March 2020 through December 2020. Restricts qualification to those property owners who can demonstrate, for the applicable period, that the COVID pandemic caused: (1) a reduction of 25% or more in gross revenues; (2) for total retail businesses that collect and remit sales tax, a reduction of 25% or more in sales tax collections; or (3) both. Provides for the applicable time period for subsequent years to be the period of time the normal operations at the property were restricted by a governmental response to the COVID-19 pandemic, defined to include an NC executive order or local regulation that required closures, forced reductions in building occupancy capacity, modified hours of operation, or included other public safety measures affecting normal business operations.
Allows qualifying property owners to enter into a payment plan for the property taxes owed on the affected property subject to specified terms and conditions. Defines the payment plan term, requires equal monthly installments, and waives interest on and defers enforced collections so long as the qualifying owner complies with the terms of the payment plan and the property is not sold or transferred. Requires application by May 1, 2021, for 2020 property taxes, and application prior to the date on which the property taxes for the taxable year become delinquent for subsequent years. Details consequences of noncompliance, property sell or transfer, or supplying incorrect information to qualify under the program. Sets guidelines for applications, including specifying application submission to the local government where the land is situated.
Directs the Department of Revenue (DOR) to coordinate with local governments to verify sales and revenue information provided by businesses under the program, and develop a list of business types affected by executive orders responding to the COVID-19 pandemic, by time period.
States legislative findings regarding the need to take into account the unprecedented market conditions in modifying certain real property values during the COVID-19 pandemic.
Mandates real property assessors to recognize the effect of COVID-19 relief efforts in value determination resulting from a change in the legally permitted use of the property, including accounting for executive orders and local regulations responding to the COVID-19 pandemic that affected normal business operations. Authorizes assessors to modify the appraised value of real property to recognize a change in value proportionate to the time during the year that resulted from economic changes affecting the county in general due to the pandemic, making appropriate modifications where the pandemic caused (1) a reduction of 25% or more in gross revenues; (2) for total retail businesses that collect and remit sales tax, a reduction of 25% or more in sales tax collections; or (3) both. Restricts the applicable time period for the 2020 property tax year from March 2020 through December 2020 as compared to the same period of 2019, and for other property tax years, the period for which executive orders or local regulations responding to the pandemic affect normal business operations as compared to the same period for 2019. Limits the required recognition to valuations for the portion of the year when governmental regulations were in effect, and considers their effectiveness as prima facie evidence as to the portions of the year warranting relief in property valuation.
Details guidelines for applications for relief, including submission to the local government where the land is situated. Requires application by May 1, 2021, for 2020 property taxes, and application prior to the date on which the property taxes for the taxable year become delinquent for subsequent years. Requires local governments to have DOR verify qualifying information to the extent possible, with reliance on the information provided when verification is not available within a reasonable time period. Deems submitted applications an appeal by the taxpayer; requires DOR to provide a uniform time line for hearing the appeal. Provides for forfeiture in the event the local government relies on incorrect qualifying information.
Directs DOR to coordinate with local governments to verify sales and revenue information provided by businesses under the program, and develop a list of business types affected by executive orders responding to the COVID-19 pandemic, by time period.
© 2021 School of Government The University of North Carolina at Chapel Hill
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