2018 Local Government Law Changes

Excluded from taxation all leasehold interests in exempt real property, some of which were previously taxable.

(Effective July 1, 2019; SB 561; s. 1.(a), S.L. 2018-93)

Because the above change to subsection (31) applies to all leasehold interests in exempt real property, the exclusion previously offered by subsection (31e) is no longer necessary. Repealed prior exclusion from taxation of a leasehold interest in “real property that is exempt under G.S. 105-278.1 and is used to provide affordable housing for employees of the unit of government that owns the property.”

(Effective July 1, 2019; SB 561; s. 1.(a), S.L. 2018-93)

Excluded from taxation personal property that is “occupied (sic) by a charter school and is wholly and exclusively used for educational purposes as defined in G.S. 105-278.4(f)…”

(Effective July 1, 2018; HB 374; s. 25.(a), S.L. 2018-114)

Expanded the property tax exclusion for mobile classrooms or modular units “occupied by a school and is wholly and exclusively used for educational purposes, as defined in G.S. 105-278.4(f)…” to include both nonprofit and for-profit charter schools.

(Effective July 1, 2018; HB 374; s. 25.(a), S.L. 2018-114)

105-277.15(c)(3)(a.)(3): Section 277.15 provides for alternate valuation of qualifying properties. The amendment expanded qualifying uses of property to include property for which the owner, by agreement with the North Carolina Wildlife Resources Commission, is required to:

Create and actively and regularly use as a reserve for hunting, fishing, shooting, wildlife observation, or wildlife activities, provided that the land is inspected by a certified wildlife biologist at least quintennially to ensure that at least three of the seven activities listed in this sub-sub-subdivision are maintained to propagate a sustaining breeding, migrating, or wintering population of indigenous wild animals for human use, including food, medicine, or recreation. The Commission shall adopt rules needed to administer the inspection requirements of and activities mandated by this sub-sub-subdivision.

I. Supplemental food. 
II. Supplemental water. 
III. Supplemental shelter. 
IV. Habitat control. 
V. Erosion control. 
VI. Predator control. 
VII. Census of animal population on the land.

105-277.15(d)(1) was amended to expand to 800 acres the maximum amount of land that may qualify under the provisions of (c)(3)(a.)(3).

(Effective date July 1, 2019; HB320; s. 1, S.L. 2018-95)

105-278.2(a) was amended to clarify that no application or survey is required in order to qualify for the exemption.

(Effective upon becoming law, June 27, 2018; SB711; s. 15, S.L. 2018-113)

Amended 105-282.1(2)(b) to provide that only a single (rather than annual) application is required for participation in the following exclusion programs provided under G.S. 105-275:

105-275(45) Solar energy electric systems 
105-275(46) Real property occupied by a charter school 
105-275(47) Certain energy mineral interests in property 
105-275(48) Real and personal property located on lands held in trust by the United States for the Eastern Band of Cherokee Indians 
105-275(49) School mobile/modular classrooms

(Effective upon becoming law, June 12, 2018; SB99; s. 38.10(d), S.L. 2018-5)

Added 105-317.1(b1) to require NCDOR to publish a depreciation schedule for farm equipment, and provides that counties using the cost approach to value farm equipment must also use the depreciation schedule published by NCDOR.

(Effective date July 1, 2019; SB711; s. 14(a), S.L. 2018-113)

Repealed 105-320(b), an obsolete provision.

(Effective upon becoming law, June 12, 2018; SB99; s. 38.10(i), S.L. 2018-5)

In addition to Saturdays, Sundays, and holidays, a due date is now extended to the next business day when all of the following occur on a due date:

a. The tax office is closed; 
b. The taxpayer certifies in writing that the United States Postal Service did not provide service to the taxpayer's address; and 
c. A disaster declaration is declared pursuant to G.S. 166A-19.21 or G.S. 166A-19.22.

(Effective date July 1, 2018; SB99; s. 38.9(a), S.L. 2018-5)