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<br />Mr. John Smith <br />Page 4 <br />July 2, 2009 <br />In summary, Parcels 04, 05 and 07 did not qualify for the <br />special tax appraisal provisions of N.C. Gen. Stat. ~ 105-277.8 <br />until November 13, 2007 because those parcels, no matter whether <br />and how restricted as to use by the recorded plat of the <br />subdivision and by the Declaration pertaining to the <br />subdivision, were not owned by a non-profit homeowners <br />association until that date. Parcel 06 does not qualify for the <br />special tax appraisal provisions of G.S. § 105-277.8 even though <br />it may be owned or has been owned by a non-profit homeowners <br />association because it was not held by the association "for the <br />use, benefit, and enjoyment of all members of the association <br />equally," because each member of the association did not have an <br />"irrevocable right to use and enjoy, on an equal basis [that <br />property]" and because the right of members of the association <br />to use that parcel, if any, is not "appurtenant to taxable real <br />property owned by a member of the association." Id. On the other <br />hand, an January 1 of the year following the conveyance of <br />Parcel 06 to Orange County (conveyance was accomplished upon <br />delivery of the executed and acknowledged deed to the County <br />evidenced by the deed's recording), Parcel 06 becomes exempt <br />from property taxes as provided in N.C. Gen. Stat. §§ 105- <br />278.1(b) and 105-285(d). <br />Notwithstanding Parcels 04, 05, 06 and 07 not qualifying <br />for the special tax treatment mandated by N.C. Gen. Stat. §§ <br />105-278.8 and 105-278.1, tax relief may be available to the <br />owners of this property. <br />All of the Parcels in Mill Creek, II, Section Two, Phase A, <br />were in the agricultural present use value program until <br />September 20, 2004, the date the final plat of that subdivision <br />was recorded. I think it is permissible for the Tax Assessor to <br />regard Parcels 04, 05, 06 and 07 of that subdivision as being <br />disqualified from present use value effective September 20, <br />2004. Parcels 04, 05, 06 and 07 (all in Phase A, Section Two), <br />because restricted as to use, however inartfully those <br />restrictions are documented,2 can be valued nominally thereafter <br />until transferred to the homeowners association (Parcels 04, 05 <br />and 07) and to Orange County {Parcel 06). Using this approach, <br />the value is not the statutory nominal one required by N.C. Gen. <br />Stat. § 105-277.8 or the tax exempt one required of N.C. Gen. <br />Stat. § 105-278.1. Rather it is a defensible permissible <br />z The recorded plat and Declaration of Restrictions of Phase A of this subdivision did not restrict the use of Parcel <br />07. However, the BOCC approved Resolution of Approval of the Preliminary Plan of this subdivision required <br />Parcel 07 to be restricted as to use. And the Declaration of Restrictions in the portion of it describing the property <br />subject to it does refer to Parcel 07 as an "Open Space Parcel." The error in documenting the subdivision consistent <br />with the approval resolution can be corrected. <br />F:\Lisa\letters\John Smith ltr re Walker Mi1T Creek prop.doc <br />