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House Bill 648-First Edition <br />~XNz1~TT ~ ~T <br />GENERAL ASSEMBLY OF NORTH CAROLINA <br />SESSION 2005 <br />H <br />HOUSE BILL 648 <br />Short Title: Exempt Builder's Inventory. (Public <br />Sponsors: Representatives Moore; Culp, Current, and Starnes. <br />Referred to: Finance. <br />March 16, 2005 <br />A BILL TO BE ENTITLED <br />AN ACT TO EXEMPT FROM PROPERTY TAX TIIE INCREASE IN VALUE OF REAL <br />PROPERTY HELD FOR SALE BY A BUILDER, TO THE EXTENT 7HE INCREASE IS <br />ATTRIBUTABLE TO SUBDIVISION OR IMPROVEMENTS BY THE BUILDER. <br />The General Assembly of North Carolina enacts: <br />SECTION 1. G.S, 105-273 is amended by adding a new subdivision to read: <br />"(3a) 'Builder' means a taxpayer engaged in the business of buying real property, <br />making impro_v_ements_to it,_and then reselling_it." <br />SECTION 2. Article 12 of Chapter 10S of the General Statutes is amended by <br />adding a new section to read: <br />"§_105-277.02. Certain real property held for sale classified for taxation at reduced <br />valuation. <br />Real property held for sale by a builder is designated a special class of property under <br />authority of Section 2(2) of Article V of the North Carolina Constitution. Any increase in value <br />of this classified property attributable to subdivision of or other improvements made to the <br />property the builder is excluded from taxation under this Subchapter as long as the builder <br />continues to hold the property for sale. The builder must apply for this exclusion annually_as <br />provided in G.S. 105-282.1. In appraising_prop~ classified under this section the assessor <br />shall specify what portion of the value is an increase attributable to subdivision or other <br />improvement by the builder." <br />SECTION 3. G,S, 10.5-287(d) reads as rewritten: <br />"(d) Notwithstanding subsection (a), if a tract of land has been subdivided into lots and <br />more than five acres of the tract remain unsold by the owner of the tract, the assessor tHa~+-shall <br />appraise the unsold portion as land acreage rather than as lots, A tract is considered subdivided <br />into lots when the lots are located on streets laid out and open for travel and the lots have been <br />sold or offered for sale as lots since the last appraisal of the property," <br />SECTION 4. This act becomes effective for taxable years beginning on or after <br />.Tanuary 1, 2006, <br />http://www.ncgastate,nc.us/Sessions/2005/Bills/House/HIML/H648v1.htm1 4/7/2005 <br />