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§105-277A CH. 105. TAXATION §105-277.4 §105-277.5 CH. 105. TAXATION §105-277.5
<br />CASE NOTES
<br />This section expressly indicates ment. - The statutory scheme for taxa-
<br />the constitutional base found in N.C. tion of property qualifying for present
<br />Const., Art. V, § 2(2) upon which special use value treatment as defined in
<br />classification is made and permitted. § 105 -277.2 and this section is a tax de-
<br />W.R. Co. v. North Carolina Property ferment. In re Parker, 76 N.C. App. 447,
<br />Tax Comm'n, 48 N.C. App. 245, 269 333 S.E.2d 749 (1985).
<br />S.E.2d 636 (1980), cert. denied, 301 N.C. Stated in In re McElwee, 304 N.C. 68,
<br />727, 276 S.E.2d 287 (1981). 283 S.E.2d 115 (1981).
<br />Statutory Scheme is Tax Defer-
<br />105 - 277.4. Agricultural, horticultural and forest -
<br />land - Application for taxation at
<br />present -use value.
<br />I (a) Property coming within one of the classes defined in G.S.
<br />105 -277.3 shall be eligible for taxation on the basis of the value of
<br />1 the property in its present use if a timely and proper application is
<br />filed with the assessor of the county in which the property is lo-
<br />cated. The application shall clearly show that the property comes
<br />within one of the classes and shall also contain any other relevant
<br />information required by the assessor to properly appraise the prop-
<br />erty at its present -use value. An initial application shall be filed
<br />during the regular listing period of the year for which the benefit of
<br />this classification is first claimed, or within 30 days of the date
<br />shown on a notice of a change in valuation made pursuant to G.S.
<br />105 -286 or G.S. 105 -287. A new application is not required to be
<br />submitted unless the property 'is transferred or becomes ineligible
<br />for use -value appraisal because of a change in use or acreage.
<br />(b) Upon receipt of a properly executed application, the assessor
<br />shall appraise the property at its present -use value as established
<br />in the schedule prepared pursuant to G.S. 105 -317. In appraising
<br />the property at its present -use value, the assessor shall appraise
<br />the improvements located on qualifying land according to the
<br />schedules and standards used in appraising other similar improve-
<br />ments in the county. If all or any part of a qualifying tract of land is
<br />located within the limits of an incorporated city or town, the asses-
<br />sor shall furnish a copy of the property record showing both the
<br />present -use appraisal and the valuation upon which the property
<br />would have been taxed in the absence of this classification to the
<br />collector of the city or town. He shall also notify the tax collector of
<br />any changes in the appraisals or in the eligibility of the property for
<br />the benefit of this classification.
<br />(bl) Decisions of the assessor regarding the qualification or ap
<br />praisal of property under this section maybe appealed to the county
<br />board of equalization and review or, if that board is not in session,
<br />to the board of county commissioners. Decisions of the county board
<br />may be appealed to the Property Tax Commission.
<br />(c) Property meeting the conditions herein set forth shall be
<br />taxed on the basis of the value of the property for its present use.
<br />The difference between the taxes due on the present -use basis and
<br />the taxes which would have been payable in the absence of this
<br />classification, together with any interest, penalties or costs that
<br />may accrue thereon, shall be a lien on the real property of the
<br />taxpayer as provided in G.S. 105- 355(a). The difference in taxes
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<br />shall be carried forward in the records of the taxing unit or units as
<br />deferred taxes, but shall not be payable, unless and until (i) the
<br />owner conveys the property to anyone other than a relative of the
<br />owner, or (ii) ownership of the property passes to anyone other than
<br />a relative by will or intestacy, or (iii) ownership of the property
<br />passes to a corporation as defined in G.S. 105- 277.2(4)b from any-
<br />one other than its principal shareholders or from such a corporation
<br />to anyone other than its principal shareholders, or (iv) the property
<br />loses its eligibility for the benefit of this classification for some
<br />other reason. The tax for the fiscal year that opens in the calendar
<br />year in which a disqualification occurs shall be computed as if the
<br />property had not been classified for that year, and taxes for the
<br />Kthree fiscal years which have been deferred as provided
<br />herein, shall immediately be payable, together with interest
<br />thereon as provided in G.S. 105 -360 for unpaid taxes which shall
<br />accrue on the deferred taxes due herein as if they had been payable
<br />on the dates on which they originally became due. If only a part of
<br />the qualifying tract of land loses its eligibility, a determination
<br />shall be made of the amount of deferred taxes applicable to that
<br />part and that amount shall become payable with interest as pro-
<br />vided above. Upon the payment of any taxes deferred in accordance
<br />with this section for the three years immediately preceding a dis-
<br />qualification, all liens arising under this subsection shall be extin-
<br />guished.
<br />(d) Notwithstanding the provisions of subsection (c), if a farm
<br />unit loses eligibility for present use value treatment solely due to a
<br />change in income caused by enrollment of land in the federal Con-
<br />servation Reserve Program authorized by Title XII of the Food Se-
<br />curity Act of 1985 (Pub. L. 99 -198), as amended, no deferred taxes
<br />shall be owed and all present use value tax liens shall be extin-
<br />guished. (1973, c. 709, s. 1; c. 905; c. 906, ss. 1, 2; 1975, c. 62; c. 746,
<br />ss. 3 -7; 1981, c. 835; 1985, c. 518, s. 1; c. 667, ss. 5, 6; 1987, c. 45, s. 1;
<br />c. 295, s. 5; c. 698, s. 6; 1987 (Reg. Sess., 1988), c. 1044, s. 13.2.)
<br />Editor's Note. - Session Laws 1987 Effect of Amendments. - Session
<br />(Reg. Sess., 1988), c. 1044, s. 13.2, effec- Laws 1987, c. 295, s. 5, effective January
<br />tive for taxable years beginning on or 1, 1988, deleted "as provided in G.S.
<br />after January 1, 1986, added subsection 105 -324" at the end of the second sen-
<br />(d). tence of subsection (bl).
<br />CASE NOTES
<br />Quoted in W.R. Co. v. North Carolina Stated in In re McElwee, 304 N.C. 68,
<br />Property Tax Comm'n, 48 N.C., App. 283 S.E.2d 115 (1981).
<br />245, 269 S.E.2d 636 (1980).
<br />§ 105 - 277.5. Agricultural, horticultural and forest-
<br />, land - Notice of change in use.
<br />Not later than the close of the listing period following a change
<br />which could disqualify all or a part of a tract of land receiving the
<br />benefit of this classification, the property owner shall furnish the
<br />assessor with complete information regarding such change. Any
<br />property owner who fails to notify the assessor of changes as afore-
<br />said regarding land receiving the benefit of this classification shall
<br />be subject to a penalty of ten percent (10 %) of the total amount of
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