Agenda - 04-06-1987 - Laserfiche WebLink

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194 GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 1987 CHAPTER 525 AN ACT TO AUTHORIZE ORANGE COUNTY TO LEVY AN EXCISE TAX ON INSTRUMENTS CONVEYING REAL PROPERTY IN ORANGE COUNTY. The General Assembly of North Carolina enacts: Section 1. Tax. (a) Authorization. The Orange County Board of Commissioners may, by resolution, levy an excise tax on instruments conveying certain interests in real property in Orange County. The tax imposed may not exceed one dollar ($1. 00) on each one hundred dollars ($100. 00) or fraction thereof of the total consideration or value of the interest conveyed, including in the case of a sale, the value of any lien or encumbrance remaining on the property at the time of sale. This tax is in addition to the tax levied by Article 8E of Chapter 105 of the General Statutes. The value of a lease subject to this tax shall be computed on the basis of the present value of the fixed lease payments and, if the lease payments are based in whole or in part on the lessee's receipts, the estimated amount of the lessee's receipts. (b) Scope. A tax levied under this section applies to all instruments conveying an interest in real property in Orange County except an instrument: (1) Conveying an interest in real property from the United States, the State, or a political subdivi- sion of the State; (2) Recording a lease for a term of 10 years or less, unless: a. The lease gives the lessee an option to renew the lease for a period that, when added to the term of the lease, exceeds the 10-year limita- tion; or b. The lease is for substantially the same pro- perty and is between the same parties as a lease previously recorded, and the term of the new lease, when added to that of the previous lease, exceeds the 10-year limitation; or c. The lease requires or permits the property to be transferred to the lessee for less than the fair market value of the property; (3) Securing indebtedness; or (4) Recording a transfer in which no consideration was paid or is due the transferor by the transferee. In addition, this tax does not apply to conveyances of an interest in real ro ert b P P Y by operation of law, b intestacy. P by will, or by (c) Collection. A tax levied under this section is payable by the transferor of the interest at the Orange County Register of Deeds Office. This tax must be paid at the Register of Deeds Office before the instrument conveying the interest is recorded. The tax assessor shall stamp or otherwise mark each instrument to approve or exempt the amount of tax due to be paid prior to the instrument being