AN ACT TO MAKE LEGISLATIVE CHANGES TO FACILITATE THE WORK OF THE BOUNDARY COMMISSION IN CONFIRMING AND REESTABLISHING THE ORIGINAL BOUNDARY EXISTING BETWEEN THE STATES OF NORTH CAROLINA AND SOUTH CAROLINA. Enacted June 22, 2016. Effective June 22, 2016, except as otherwise provided.
Summary date: Jun 23 2016 - More information
Summary date: May 26 2016 - More information
Senate amendment makes the following changes to the 4th edition.
Amends Section 3(d) of the act to make clarifying changes.
Summary date: May 24 2016 - More information
Senate committee substitute makes the following changes to the 3rd edition.
Changes the long title.
Makes clarifying change to Section 1(a)(5).
Adds to the statement of intent in Section 1(b) that it is also the intent of the General Assembly to avoid disputes with persons and owners of land with a situs recognized, as a result of a boundary certification, to be in the State. Replaces "border" with "boundary" throughout Section 1(b). Corrects reference in defining border certification to subsection (c) of Section 1 (was, Section 3 of the act).
Amends Section 1(c), concerning certification of the boundary between North Carolina and South Carolina, to provide that the certification is for purposes other than property tax (currently, does not excluded property tax purposes), and that the certification is as of January 1, 2017 (was, January 1, 2016). Adds that for property tax purposes, the General Assembly certifies that, as of January 1 of the year following the year the act becomes effective or the year an executive order is issued by the Governor proclaiming the boundary between North Carolina and South Carolina, whichever is earlier, the boundary between North Carolina and South Carolina is the boundary that was established in the original survey and resurveys that were adopted through legislative and executive actions, and the reestablished boundary has been approved by the boundary commissions of North Carolina and South Carolina and proclaimed as the boundary by the Governor, pursuant to GS 141-5.
Replaces "border" with "boundary" throughout Section 2(a). Amends Section 2(b), concerning designating an establishment to which permits may be issued under GS 18B-1006(n1), as enacted by this act, as a special class of property under the North Carolina Constitution, to provide that the motor fuel sold by that establishment is to be taxed at a rate of 16 cents a gallon (deletes reference to tax rate for the 2016 calendar year). Adds that an establishment designated as a special class of property by Section 2(b) may obtain monthly refunds on the difference between the motor fuel excise tax imposed under GS 105-449.80 and the motor fuel excise tax imposed by Section 2(b). Provides that the difference in taxes, together with any interest, penalties, or costs that may accrue thereon, are a lien on the real property underlying the establishment (was, on the real property of the taxpayer) as provided in GS 105-355(a). Provides that the deferred taxes, which are the difference in taxes carried forward in records by the Department, for the preceding three (was, four) calendar years are due and payable on the day Section 2(b) becomes ineffective due to the occurrence of a disqualifyng event. Adds provision that the amount collected for deferred taxes pursuant to Section 2(b) cannot exceed the tax value of the property. Clarifies that a disqualifying event occurs when the title to the real property underlying the establishment is transferred (was, when the establishment is transferred) to a new owner. Clarifies that the lien for deferred taxes is extinguished when the amount required by Section 2(b) is paid (was, when the taxes are paid). Provides that for property tax purposes, Sections 2(a) and 2(b) are effective on the date of certification applicable to property tax purposes provided in Section 1(c) of the act, and that for all other purposes, effective for taxable periods beginning on or after January 1, 2017.
Deletes the previous language of Section 3 and replaces it with the following.
Requires the North Carolina Geodetic Survey to record the final survey of the confirmed boundary in the office of the register of deeds in every county in the State where real property has been affected by the certification of the boundary. Provides that the applicable uniform fees in GS 161-10 apply to the recordation of the final survey. Requires the register of deeds to register and index the surveys in accordance with the provisions of Article 2 (duties of the office of register of deeds) of GS Chapter 161.
Requires that, for parcels of real property affected by the certification of boundary, situated in whole or in part within the boundaries of the State, the North Carolina Geodetic Survey is to record a Notice of Affected Parcel in the office of the register of deeds in the county or counties where each affected parcel is situated, and the register of deeds is to register and index the Notice in accordance with Article 2 of GS Chapter 161. Establishes that notwithstanding any other provisions of law to the contrary, the register of deeds cannot collect any fees or taxes for the Notice recorded pursuant to Section 3(b). Requires the Notice to contain reference to the act; the recording reference for the final survey of the confirmed boundary recorded pursuant to Section 3(a); the names of the record owners of the parcel; the property address of the parcel; a tax parcel identification number or other applicable identifier used by a county tax office, if available; a brief description of the property, if available; and a source deed reference for the parcel, if available.
New Section 3(c) establishes that title to real property previously treated as being subject to the jurisdiction of the State of South Carolina but that is recognized as being within the boundaries of North Carolina as a result of the certification of the boundary is not affected by the certification of the boundary or the recognition of the real property as being within the boundaries of North Carolina. Establishes that all conveyances and instruments of title, as defined by the act, of any sort, made prior to the certification of the boundary are to be recognized and given full faith and credit in North Carolina according to the law, jurisdiction, and terms in effect at the time of the conveyance in the jurisdiction the property was previously treated as being subject to.
Establishes that liens recorded prior to the boundary certification with the register of deeds or docketed with the clerk of superior court in the county in the State where the affected parcel is situated is to attach, as a class, to the affected parcel as of the effective date and time of the boundary certification. Provides that this class of liens is to be assigned priority as of the date of the border certification but is to remain the same priority among themselves as if Section 3(d) did not apply.
Prohibits the Commissioner of Insurance, with respect to a real estate title insurance company that previously operated only in South Carolina and issued a policy of title insurance in compliance with South Carolina law for a parcel of real estate now determined to be located wholly or partially in North Carolina, from (1) requiring a certificate of authority to do business as a real estate title insurance company under Article 26 GS Chapter 58 or (2) taking enforcement action against any title insurance company for failure to comply with Articles 26, 27, or 28 of GS Chapter 58 applicable to real estate title insurance companies in North Carolina or any other statutory or regulatory requirements applicable to all insurance companies in North Carolina.
Provides that nothing in Section 3 is intended to prevent the Commissioner of Insurance from entering into a memorandum of agreement with the South Carolina Department of Insurance with respect to enforcement of South Carolina law against real estate title insurance companies subject to Section 3.
Amends Section 4 by amending the existing language of Section 4 and moving it to new Section 4(a), and enacting a new Section 4(b), as follows.
Establishes that foreclosure actions initiated on real property encumbered by a security instrument (was, encumbered by a lien) recorded in South Carolina wherein the real property is situated, in whole or in part, within the certified North Carolina boundaries are to be governed by the terms of the security instrument sought to be enforced for that portion of real property recognized as being in a different state (previous language does not distinguish portion recognized as being in a different state). Establishes that a party seeking to enforce the terms of the security agreement may report to judicial foreclosure in accordance with the terms within the security instrument (was, security interest). Provides that, prior to initiating an action to enforce a security instrument, the security instrument or a certified copy (previously, did not allow a certified copy) must be recorded in the office of the register of deeds for the county where the subject property is situated. Adds that the provisions of GS 45-10(a) apply with regard to the appointment or substitution of a trustee for any mortgage or deed of trust foreclosed pursuant to Section 4(a).
New Section 4(b) establishes that, notwithstanding any other provision of law to the contrary, for mortgages foreclosed pursuant to Section 4(a), a mortgagee or its successors or assigns are entitled to bid at a foreclosure sale conducted pursuant to a judgment or order of foreclosure entered by the courts of the State.
Makes technical change to Section 6(c).
Replaces "border" with "boundary" certification in GS 18B-1006(n1)(2).
Amends Section 10 by replacing "Department of Environment and Natural Resources" with "Department of Environmental Quality" throughout the Section. Adds provision to establish that nothing in Section 10 is intended to limit the applicability or employment of existing procedures under North Carolina statutes and regulations granting waivers or variances from otherwise applicable environmental rules or standards.
Changes the date from January 1, 2016, to January 1, 2017, where the owner or occupant of a dwelling unit or commercial establishment on improved property deemed to be located in whole or in party in the State of North Carolina as a result of the boundary certification may continue to receive utility services from the South Carolina utility or its successor providing service to the property. Also changes the date from January 1, 2016, to January 1, 2017, where the owner or occupant may elect to have one or more utilities being provided to the property by a South Carolina utility to be provided by a North Carolina utility as long as the property is located within North Carolina utility's service area.
Summary date: Jul 21 2015 - More information
Senate committee substitute makes the following changes to the 1st edition.
Amends Section 2(b) of the act to require the Department of Revenue (Department) to calculate, for each year, the difference between the motor fuel excise tax that would have been imposed under GS 105-449.80 on the motor fuel sold by an establishment classified by this section in the absence of the classification and the motor fuel excise tax that was imposed on the motor fuel sold by the establishment due to the classification. Specifies that the difference in the taxes, and any associated interest, penalties, and costs, are a lien on the taxpayer's real property. Requires that the difference in taxes be carried forward in the Department's records as deferred taxes and makes the deferred taxes for the preceding years due on the day that Section 2(b) becomes ineffective because of a disqualifying event. Defines a disqualifying event as when the establishment is transferred to a new owner. Extinguishes the lien for deferred taxes when the taxes are paid. Makes conforming changes.
Makes other technical changes.
Summary date: Mar 27 2015 - More information
Certifies that as of January 1, 2016, the boundary between North Carolina and South Carolina is the one established by the original survey and resurveys that were adopted through legislative and executive actions, and that the reestablished boundary has been approved by the two states' boundary commissions and proclaimed as the boundary by the Governor.
Sets out provisions that detail how to handle conflicts that might arise due to the boundary changes for issues related to tax liability; instruments of title to real property; foreclosure of deeds of trust and mortgages; public school enrollment; driver's education eligibility and beginner licenses; eligibility for in-state tuition; issuance of ABC permits; title, registration, and highway use tax; environmental compliance; and utilities/extension of rural fire protection districts, county service districts, and water and sewer districts.
Includes a severability clause.
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