AN ACT TO REQUIRE PAYMENT OF ADDITIONAL TAXES BY THE APPROPRIATE OWNERS OF RECORD FOR CORRECTED REVALUATIONS AND TO PROVIDE OPTIONS FOR THE DISPOSITION OF MINIMAL PROPERTY TAX REFUNDS. Enacted October 1, 2015. Effective October 1, 2015.
Summary date: Oct 6 2015 - More information
Summary date: Sep 24 2015 - More information
House committee substitute makes the following changes to the 5th edition.
Amends Section 3 of SL 2013-362 to add that the tax collector is allowed to issue forms and develop procedures to implement a payment plan for for the payment of additional taxes owed due to a revaluation.
Summary date: Aug 10 2015 - More information
House committee substitute makes the following changes to the 4th edition.
Amends the short and long titles.
Amends Section 3 of SL 2013-362 concerning payment plans for property taxes owed as a result of errors that caused an understated value, providing that the appropriate owner can enter into a payment plan for such taxes owed if greater than $1,000 provided that the plan (1) does not exceed 36 months, and (2) requires equal installments (previously, allowed payment plans if not longer in duration than 60 months and did not have an equal installment requirement).
Enacts new subsection GS 105-321(g) to allow governing bodies with taxing authority to adopt resolutions to provide that refunds of tax overpayments of $15 or less will not be refunded via mail. Requires resolutions to be adopted on or before June 15 preceding the first taxable year to which these provisions apply. Sets out procedures and recordkeeping requirements for such refunds. Provides that such minimal refunds can be requested in person at the tax office before the end of the current fiscal year. If no request is made, the refund amount is to be credited against future taxes. Specifies how interest will accrue.
Summary date: Apr 22 2015 - More information
Senate amendment makes the following changes to the 3rd edition. Specifies that interest on the taxes due does not accrue for the period that a taxpayer is making timely payments under a payment plan (was, interest accrues as provided in GS 105-360).
Summary date: Apr 21 2015 - More information
Senate committee substitute makes the following changes to the 2nd edition.
Amends Section 3 of SL 2013-362 as follows.
Deletes proposed language concerning parcels that have not been transferred. Specifies that additional taxes levied on parcels as a result of errors causing the parcels to have an understated value are due on September 1 but no earlier than four years from the last general reappraisal date and are payable, if the taxpayer chooses, through an agreement over a period of no more than 60 months if the total of the additional taxes is more than $1,000. Amends the provisions concerning parcels that have been transferred in a tax year for which errors requiring reappraisals resulted in an underpayment of taxes to no longer provide for a payment plan. Provides that if an owner who is not responsible for underpaid taxes paid the underpaid taxes, the owner may assert a valid defense for a refund as a tax imposed through clerical error. Requires interest on the refund to be 5% per annum from the date the owner asserting the defense paid the underpaid taxes until the date the refund is issued. Makes organizational changes.
Summary date: Mar 24 2015 - More information
Senate committee substitute makes the following changes to the 1st edition.
Amends Section 3 of SL 2013-362 regarding the transfer of real property that has been undervalued as a result of errors, which has resulted in an underpayment of taxes on the real property. Provides that if the property has changed owners in a tax year that requires reappraisal under SL 2013-362 resulting in underpayment, the taxes for each tax year before the fiscal year in which the transfer occurred and inclusive of the fiscal year in which the transfer occurred are to be collected against the owner of record as of January 1 of each tax year for which unpaid taxes exist. Permits the prior owner to enter into an agreement for a payment plan that is not more than 60 months in duration. Provides that if the unpaid taxes remain unpaid at the end of the 60 months, the collection method would be by levy, as provided in GS 105-367, or attachment and garnishment, as provided in GS 105-368.
Provides that if the current owner or a previous owner paid the underpaid taxes, the current owner may assert a valid defense for a refund of a tax imposed through clerical error under GS 105-381. Provides that the underpaid taxes are to be treated as taxes on discovered (was, undiscovered) property under GS 105-312, except that discovery penalties do not apply. Makes additional technical corrections.
Summary date: Mar 3 2015 - More information
Amends Section 3 of SL 2013-362 (correcting general reappraisals resulting in property values that do not comply with the requirements of North Carolina law by setting forth the steps required to bring the general reappraisal into compliance with the applicable property tax mandates) as follows. Amends the way that additional taxes levied on parcels as a result of errors causing the parcels to have an understated value are treated as follows. Requires in instances of parcels that have not been transferred in any tax year for which errors requiring reappraisal under the act resulted in an underpayment of taxes that the taxes be treated as taxes on discovered property. Requires in instances of parcels that have been transferred in a tax year for which errors requiring reappraisal under the act resulted in an underpayment of taxes that the taxes for each tax year before and in the fiscal year in which the transfer occurred be collected using only the remedies in GS 105-367 (procedure for levy) and GS 105-368 (procedure for attachment and garnishment) against the owner of record as of January 1 of each tax year for which taxes are unpaid. Provides that there is no lien on the property for underpaid taxes arising in a year in which the property is owned by a person other than the current owner as of January 1 of that year, and the current owner is not held personally responsible for the underpaid taxes. Underpaid taxes are to be treated as taxes on undiscovered property.
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