2025 Local Government Tax Law Changes

Tab/Accordion Items

Amended to provide clarification for the exclusion offered by statute.

  • Clarifies two aspects of the exclusion by changing “an owner of land” to “an owner of real property subject to a Brownfields agreement entered into by the Department of Environmental Quality pursuant to G.S. 130A-310.32.” [Emphasis added]. The change clarifies the availability of the exclusion to all real property, and that the Brownfields agreement must be in place prior to the availability of the exclusion. 
  • Establishes July 1, 2000, as the date after which qualifying improvements must be made (this was previously a variable date). 
  • Clarifies that the exclusion is available to further improvements made on the property, so that each completed improvement could qualify for a separate five-year exclusion period.

 

Clarifies the timing on when qualifying improvements are made, with respect to the Brownfields agreement.

Defines “qualifying improvements on Brownfields properties” and “qualifying improvements” as improvements made:

  1. After the Department of Environmental Quality provides written certification of eligibility for a Brownfields agreement, provided that
  2. The real property actually is, or becomes, subject to a Brownfields agreement.

(Effective beginning on or after July 1, 2025; SB 387, s. 1., S.L. 2025-53.)

Provides an opportunity for certain applications made for the exemption offered by G.S. 105-278.3 to be granted retroactively. Permits a late application to be filed as provided in G.S. 105-282.1(a1) to “apply to property taxes levied by the county or municipality during the five calendar years immediately preceding the effective date of this section.” The five calendar years immediately preceding the effective date of the section are 2020, 2021, 2022, 2023, and 2024.

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