House committee substitute to the 3rd edition makes the following changes. Amends the act’s long title. Moves previous Section 2 to Section 7 and adds the following new content.

Section 2

Removes the described property from Morehead City’s corporate limits. Specifies that the section does not effect the validity of any liens to the City for ad valorem taxes or special assessments outstanding before the effective date of the section; allows the liens to be collected or foreclosed upon after the effective date as though the property were still within the City’s corporate limits. Effective June 30, 2026. Excludes property in the described territory as of January 1, 2026, from municipal taxes for taxes imposed for taxable years beginning on or after July 1, 2026.

Section 3

Removes the described property from Washington’s corporate limits. Specifies that the section does not effect the validity of any liens to the City for ad valorem taxes or special assessments outstanding before the effective date of the section; allows the liens to be collected or foreclosed upon after the effective date as though the property were still within the City’s corporate limits. Effective June 30, 2026. Excludes property in the described territory as of January 1, 2026, from municipal taxes for taxes imposed for taxable years beginning on or after July 1, 2026.

Section 4

Removes the described property from Kernersville’s corporate limits. Specifies that the section does not effect the validity of any liens to the Town for ad valorem taxes or special assessments outstanding before the effective date of the section; allows the liens to be collected or foreclosed upon after the effective date as though the property were still within the Town’s corporate limits. Effective June 30, 2026. Excludes property in the described territory as of January 1, 2026, from municipal taxes for taxes imposed for taxable years beginning on or after July 1, 2026.

Section 5

Removes the described property from Red Oak’s corporate limits. Specifies that the section does not effect the validity of any liens to the Town for ad valorem taxes or special assessments outstanding before the effective date of the section; allows the liens to be collected or foreclosed upon after the effective date as though the property were still within the Town’s corporate limits. Effective June 30, 2026. Excludes property in the described territory as of January 1, 2026, from municipal taxes for taxes imposed for taxable years beginning on or after July 1, 2026.

Section 7

Removes the described property from Waynesville’s corporate limits. Specifies that the section does not effect the validity of any liens to the Town for ad valorem taxes or special assessments outstanding before the effective date of the section; allows the liens to be collected or foreclosed upon after the effective date as though the property were still within the Town’s corporate limits. Effective June 30, 2026. Excludes property in the described territory as of January 1, 2026, from municipal taxes for taxes imposed for taxable years beginning on or after July 1, 2026.

Section 8

Removes the described property from Walnut Creek’s corporate limits. Specifies that the section does not effect the validity of any liens to the Village for ad valorem taxes or special assessments outstanding before the effective date of the section; allows the liens to be collected or foreclosed upon after the effective date as though the property were still within the Village’s corporate limits. Effective June 30, 2026. Excludes property in the described territory as of January 1, 2026, from municipal taxes for taxes imposed for taxable years beginning on or after July 1, 2026.

Section 9

Repeals SL 1977-55. Prohibits Walnut Creek from exercising any powers given to cities in GS Chapter 160D in any area beyond its contiguous corporate limits. Makes the relinquishment of jurisdiction by Walnut Creek over the area beyond its contiguous corporate limits effective on the date this section becomes law. Ratifes, validates, confirms, and approves any acquisition, conveyance, transfer, or acceptance of real property or interest in real or personal property by  Walnut Creek occurring before the section’s effective date, as if Walnut Creek had possessed full legal authority to undertake the action when it occurred.