Bill Summary for H 168 (2015-2016)

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Summary date: 

Jun 30 2015

Bill Information:

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.

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Bill summary

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.