1999 Tax Law Changes - Property Tax XXIII. PROPERTY TAX G.S. 105-275(41) - Technical Change: This new subdivision recodifies an exemption that was in G.S. 140-15, which was repealed. The exemption is for art objects held by the North Carolina Art Society, Incorporated. The exemption was moved from G.S. 140-15 to G.S. 105-275 so that all the exemptions and exclusions from property tax would be in the same place. (Effective July 22, 1999; SB 55, s. 35, S.L. 99-337.) G.S. 105-275.2(f) - Revenue Reduction for Retirement Home Discoveries: New subsection (f) gives counties and municipalities a disincentive to discover retirement facilities described in G.S. 105-278.6A. It requires counties and cities to report to the Secretary of Revenue the amount of taxes collected for tax year 1992 or later from qualified retirement facility property, as defined under G.S. 105-278.6A, that was discovered on or after January 1, 1998. The State must reduce the amount to be distributed to the county or municipality as reimbursement for the repeal of the taxes on intangible property. The reduction is 110% of the amount of taxes collected on discovered retirement facilities. (Effective July 1, 1998, and expires September 1, 2003; SB 325, S.L. 99-191.) G.S. 105-278.6A(c)(4) - Retirement Home Exemption Modified: This subdivision was amended to make two changes to the criteria a retirement facility must meet to qualify for exclusion from property tax. The first change removes the grandfather clause that limited the facilities that can qualify to those whose charter or bylaws contained certain provisions as of August 15, 1998. With the removal of this limiting date, a facility can amend its charter or bylaws to add the required provisions. The second change expands the qualifying condition that is based on the membership of the facility's board of directors. Before the change, that condition required the facility's board of directors to have a majority of members selected by a nonprofit corporation exempt from income tax under section 501(c)(3) of the Internal Revenue Code. As amended, the subdivision requires the facility's board of directors to have a majority of members selected by either a nonprofit corporation or a nonprofit association that is exempt under section 501(c)(3), (c)(8), or (c)(10). Both (c)(8) and (c)(10) apply to certain fraternal societies and orders. (Effective for taxes imposed on or after July 1, 1998; SB 325, S.L. 99-191.) G.S. 105-303(b) - Permanent Listing for Real Property: This subsection was rewritten to require all counties to install a permanent listing system for real property and to make stylistic changes. The permanent listing system must meet the approval of the Department of Revenue. (Effective July 1, 2004; SB 817, S.L. 99-297.) G.S. 105-312(h) - No Penalty For Some Unlisted Property: This subsection was amended to provide an exception to the late listing penalty for certain real property situated in a county that has not adopted a permanent listing system. The 10% late listing penalty does not apply to real property if no improvements have been made to the property since it was last listed and there has been no change in ownership since it was last listed. (Effective July 1, 1999, and repealed effective for taxes imposed on or July 1, 2004; SB 817, S.L. 99-297.) G.S. 105-322(e) - Stokes County Board of Equalization and Review: An amendment was made to this subsection that applies only to Stokes County. The amendment allows the Stokes County Board of Equalization and Review to meet after the deadlines that apply to all other counties to hear and decide appeals concerning discovered property, motor vehicles, present-use value classifications, and exempt or excluded property. (Effective July 22, 1999; HB 315, S.L. 99-353.) G.S. 105-330.2 - Motor Vehicle Valuation Date Changed: This section was rewritten to change the valuation date of registered motor vehicles from January 1 preceding the date the vehicle was first registered, or its registration was renewed, to January 1 of the year the taxes are due. For many motor vehicles, this change moves their valuation date a year later, thereby producing lower values for the vehicles. (Effective for taxes imposed on or after July 1, 2000; HB 315, S.L. 99-353.) G.S. 105-357(b) - Electronic Payments: This subsection was amended to allow the tax collector to accept electronic payments in payment of taxes. An electronic payment is a payment by charge card, credit card, debit card, or electronic funds transfer. Before this change, the statute allowed the tax collector to accept payments by credit cards but not the other forms of electronic payments. (Effective August 10, 1999; SB 222, s. 6, S.L. 99-434.) G.S. 105-369 - Owner Notified Before Tax Lien Advertised: This section was amended to add a new subsection (b1) that requires notification to owners, to state in subsection (c) that failure of a tax collector to post a notice of tax liens at the courthouse or to advertise tax liens in a newspaper does not affect the validity of the tax or the tax lien, and to make stylistic changes in the other subsections. Under new subsection (b1), the tax collector must notify both the listing owner and the record owner of property on which taxes are owed before the owner's name and the delinquent tax are advertised in a newspaper. These owners are determined as of December 31 of the fiscal year for which the taxes are due. The notice must be sent by first class mail to the last known address at least 30 days before the advertisement is published. Failure to mail the notice or comply with subsection (c) does not affect the validity of the taxes or tax liens. These changes were made to ensure that owners of property receive notice before their names appear in a list of delinquents in the newspaper. (Effective January 1, 2001; HB 120, S.L. 99-439.) G.S. 105-374 - Conforming Change: Subsections (h), (k), and (p) of this section were amended to refer to the new statute that sets out the procedure for appealing an order entered by a clerk of court and to make stylistic changes. The new statute is G.S. 1-301.1. Before the change, the statutes referred to appealing an order of the clerk in the same manner as other orders of the clerk. (Effective January 1, 2000; SB 246, s. 14, 15, and 16, S.L. 99-216.) G.S. 105-375(b) - Period Before Docketing Lien Shortened: This subsection was amended to shorten the time period a tax collector must wait after the advertisement of tax liens before docketing the taxes as a judgment. Before this amendment, the tax collector had to wait six months after advertising before filing a certificate with the clerk of superior court to docket the liens as a judgment. The amendment shortens the waiting period from six months to 30 days. This change was made in conjunction with the change to G.S. 105-369, which requires notice to the owners before a lien is advertised. (Effective January 1, 2001; HB 120, S.L. 99-439.) G.S. 105-375(e) - Conforming Change: This subsection was amended to delete a reference to the six-month waiting period set in G.S. 105-375(b). The six-month period in subsection (b) was changed; thus, this reference needed to be changed also. Regardless of its length, the waiting period in subsection (b) does not apply to the foreclosure of special assessments. (Effective January 1, 2001; HB 120, S.L. 99-439.) G.S. 159-13(b)(6) - Budget Estimates Modified: This subdivision was rewritten to exclude from the estimated percentage of collection the taxes levied and collected on registered motor vehicles during the last quarter of the preceding fiscal year. In making this estimate, the motor vehicle taxes due April, May, and June are excluded. This exclusion is only for budgeting purposes and not for the collector's settlement or for reports filed with the Local Government Commission. (Effective July 1, 1999; SB 484, S.L. 99-261.)
1999 Tax Law Changes - Property Tax XXIII. PROPERTY TAX G.S. 105-275(41) - Technical Change: This new subdivision recodifies an exemption that was in G.S. 140-15, which was repealed. The exemption is for art objects held by the North Carolina Art Society, Incorporated. The exemption was moved from G.S. 140-15 to G.S. 105-275 so that all the exemptions and exclusions from property tax would be in the same place. (Effective July 22, 1999; SB 55, s. 35, S.L. 99-337.) G.S. 105-275.2(f) - Revenue Reduction for Retirement Home Discoveries: New subsection (f) gives counties and municipalities a disincentive to discover retirement facilities described in G.S. 105-278.6A. It requires counties and cities to report to the Secretary of Revenue the amount of taxes collected for tax year 1992 or later from qualified retirement facility property, as defined under G.S. 105-278.6A, that was discovered on or after January 1, 1998. The State must reduce the amount to be distributed to the county or municipality as reimbursement for the repeal of the taxes on intangible property. The reduction is 110% of the amount of taxes collected on discovered retirement facilities. (Effective July 1, 1998, and expires September 1, 2003; SB 325, S.L. 99-191.) G.S. 105-278.6A(c)(4) - Retirement Home Exemption Modified: This subdivision was amended to make two changes to the criteria a retirement facility must meet to qualify for exclusion from property tax. The first change removes the grandfather clause that limited the facilities that can qualify to those whose charter or bylaws contained certain provisions as of August 15, 1998. With the removal of this limiting date, a facility can amend its charter or bylaws to add the required provisions. The second change expands the qualifying condition that is based on the membership of the facility's board of directors. Before the change, that condition required the facility's board of directors to have a majority of members selected by a nonprofit corporation exempt from income tax under section 501(c)(3) of the Internal Revenue Code. As amended, the subdivision requires the facility's board of directors to have a majority of members selected by either a nonprofit corporation or a nonprofit association that is exempt under section 501(c)(3), (c)(8), or (c)(10). Both (c)(8) and (c)(10) apply to certain fraternal societies and orders. (Effective for taxes imposed on or after July 1, 1998; SB 325, S.L. 99-191.) G.S. 105-303(b) - Permanent Listing for Real Property: This subsection was rewritten to require all counties to install a permanent listing system for real property and to make stylistic changes. The permanent listing system must meet the approval of the Department of Revenue. (Effective July 1, 2004; SB 817, S.L. 99-297.) G.S. 105-312(h) - No Penalty For Some Unlisted Property: This subsection was amended to provide an exception to the late listing penalty for certain real property situated in a county that has not adopted a permanent listing system. The 10% late listing penalty does not apply to real property if no improvements have been made to the property since it was last listed and there has been no change in ownership since it was last listed. (Effective July 1, 1999, and repealed effective for taxes imposed on or July 1, 2004; SB 817, S.L. 99-297.) G.S. 105-322(e) - Stokes County Board of Equalization and Review: An amendment was made to this subsection that applies only to Stokes County. The amendment allows the Stokes County Board of Equalization and Review to meet after the deadlines that apply to all other counties to hear and decide appeals concerning discovered property, motor vehicles, present-use value classifications, and exempt or excluded property. (Effective July 22, 1999; HB 315, S.L. 99-353.) G.S. 105-330.2 - Motor Vehicle Valuation Date Changed: This section was rewritten to change the valuation date of registered motor vehicles from January 1 preceding the date the vehicle was first registered, or its registration was renewed, to January 1 of the year the taxes are due. For many motor vehicles, this change moves their valuation date a year later, thereby producing lower values for the vehicles. (Effective for taxes imposed on or after July 1, 2000; HB 315, S.L. 99-353.) G.S. 105-357(b) - Electronic Payments: This subsection was amended to allow the tax collector to accept electronic payments in payment of taxes. An electronic payment is a payment by charge card, credit card, debit card, or electronic funds transfer. Before this change, the statute allowed the tax collector to accept payments by credit cards but not the other forms of electronic payments. (Effective August 10, 1999; SB 222, s. 6, S.L. 99-434.) G.S. 105-369 - Owner Notified Before Tax Lien Advertised: This section was amended to add a new subsection (b1) that requires notification to owners, to state in subsection (c) that failure of a tax collector to post a notice of tax liens at the courthouse or to advertise tax liens in a newspaper does not affect the validity of the tax or the tax lien, and to make stylistic changes in the other subsections. Under new subsection (b1), the tax collector must notify both the listing owner and the record owner of property on which taxes are owed before the owner's name and the delinquent tax are advertised in a newspaper. These owners are determined as of December 31 of the fiscal year for which the taxes are due. The notice must be sent by first class mail to the last known address at least 30 days before the advertisement is published. Failure to mail the notice or comply with subsection (c) does not affect the validity of the taxes or tax liens. These changes were made to ensure that owners of property receive notice before their names appear in a list of delinquents in the newspaper. (Effective January 1, 2001; HB 120, S.L. 99-439.) G.S. 105-374 - Conforming Change: Subsections (h), (k), and (p) of this section were amended to refer to the new statute that sets out the procedure for appealing an order entered by a clerk of court and to make stylistic changes. The new statute is G.S. 1-301.1. Before the change, the statutes referred to appealing an order of the clerk in the same manner as other orders of the clerk. (Effective January 1, 2000; SB 246, s. 14, 15, and 16, S.L. 99-216.) G.S. 105-375(b) - Period Before Docketing Lien Shortened: This subsection was amended to shorten the time period a tax collector must wait after the advertisement of tax liens before docketing the taxes as a judgment. Before this amendment, the tax collector had to wait six months after advertising before filing a certificate with the clerk of superior court to docket the liens as a judgment. The amendment shortens the waiting period from six months to 30 days. This change was made in conjunction with the change to G.S. 105-369, which requires notice to the owners before a lien is advertised. (Effective January 1, 2001; HB 120, S.L. 99-439.) G.S. 105-375(e) - Conforming Change: This subsection was amended to delete a reference to the six-month waiting period set in G.S. 105-375(b). The six-month period in subsection (b) was changed; thus, this reference needed to be changed also. Regardless of its length, the waiting period in subsection (b) does not apply to the foreclosure of special assessments. (Effective January 1, 2001; HB 120, S.L. 99-439.) G.S. 159-13(b)(6) - Budget Estimates Modified: This subdivision was rewritten to exclude from the estimated percentage of collection the taxes levied and collected on registered motor vehicles during the last quarter of the preceding fiscal year. In making this estimate, the motor vehicle taxes due April, May, and June are excluded. This exclusion is only for budgeting purposes and not for the collector's settlement or for reports filed with the Local Government Commission. (Effective July 1, 1999; SB 484, S.L. 99-261.)
