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Tax & Finance Goals & Guiding Principles <br /> TF-8: Seek a legislative study of the impact to local govern- <br /> ment finances of exempting previously taxable properties <br /> from the property tax base when acquired by nonprofits. <br /> • A changing health insurance and payment environment has <br /> led to the purchase of medical practices by the state's lead- <br /> ing non-profit hospitals. <br /> • Generally, the non-profit's tax exemption status conveys to <br /> those entities merged with the parent company. Stand-alone <br /> private medical practices subject to county property and <br /> sales taxes prior to purchase by the non-profit entity would <br /> be tax-exempt after consolidation, eroding the county tax <br /> base without a commensurate decrease in needed county <br /> services. <br /> TF-9: Seek legislation to renew the study of compensation <br /> to counties for property acquired by the state and removed <br /> from the ad valorem tax base. <br /> • Legislation in 2013 authorized a State Payment in Lieu of <br /> Taxes Study Commission to examine the development of a <br /> state PILT program to reimburse counties for housing state- <br /> owned, tax-exempt properties. <br /> • No Senate appointments were made to initiate the study <br /> commission, whose authority terminated upon the conven- <br /> ing of the 2015 General Assembly. <br /> TF-10: Seek legislation to prevent title transfers of vehicles <br /> on which property taxes are owed. <br /> • Under the current tax-tag together program, it is possible to <br /> transfer the title of a vehicle on which property taxes are still <br /> owed to another owner. This change would prevent transfers <br /> until the original owner pays the vehicle property taxes owed <br /> to the county. <br /> www.ncacc.org I (919) 715-2893 <br /> 29 <br />