Agenda - 04-12-2005-6c - Laserfiche WebLink

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Senate Bill 508-First Edition CX~z131.T D is GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2005 S SENATE BILL 508 Short Title: Exempt Builders' Inventory. (Public) Sponsors: Senators Dalton; Brown, Hartsell, Hoyle, Hunt, Swindell, and Weinstein. Referred to: Finance. March 1 S, 2005 A BILL TO BE ENTITLED AN ACT TO EXEMPT FROM PROPERTY TAX THE INCREASE IN VALUE OF REAL PROPERTY HELD FOR SALE BY A BUILDER, TO THE EXTENT THE INCREASE ATTRIBUTABLE TO SUBDIVISION OR IMPROVEMENTS BY THE BUILDER. The General Assembly of North Carolina enacts: SECTION 1. G.S, l OS-27.3 is amended by adding a new subdivision to read: (3a) "Builder" means a taxpayer engaged in the business of buying real property making improvements to it, and then reselline it." SECTION 2. Article 12 of Chapter IOS of the General Statutes is amended by adding a new section to read: "§_._ 10$-27702. Certain real property held for sate classified _for .taxation at_redueed valuation. Real__property held for sale by a builder is designated a special_ class_of property under authorty_ of_Article V~, Seo~2(2.) of the_.North Carolina__Constrtuhon_ Any_inerease in_value_of this__ classif ed property attributable to _ subdivision_ of or other__improv_ements_made . to the proper_tya_ by the builder, is excluded from taxation under thrs Subchapter as_ long_as the builder continues to hold the_property_for sale. In no event shall this exclusion extend for_more than f v_e_ years froln_the time the improved property was_f rst subject to being fisted for taxatton. by the builder. The_builder must apply__for this_ exclusion annually_as__pro_yded in G.S. lOS 282w1...In appraising property classifed under_this section,_the assessor shall specify what portron of the value is an increase attributable to subdivision or other improvement by the builder." SECTION 3. G.S. lOS-287(d) reads as rewritten: "(d) Notwithstanding subsection (a), if a tract of land has been subdivided into lots and more than five acres of the tract remain unsold by the owner of the tract, the assessor ~a~+-shall appraise the unsold portion as land acreage rather than as lots. A tract is considered subdivided into lots when the lots are located on streets laid out and open for travel and the lots have been sold or offered for sale as lots since the last appraisal of the property," SECTION 4. This act is effective for taxes unposed for taxable years beginning on or after July 1, 2006, http://www.ncgastate,naus/Sessions/2005/Bills/Senate/HTML/SS 08v L html 4/7/2005