Property Tax Relief
Builders Inventory Exclusion
§ 105-277.02. Certain real property held for sale classified for taxation at reduced valuation.
(a) Residential Real Property. – Residential real property held for sale by a builder is designated a special class of property under authority of Article V, Sec. 2(2) of the North Carolina Constitution. For purposes of this subsection, "residential real property" is real property that is intended to be sold and used as an individual's residence immediately or after construction of a residence, and the term excludes property that is either occupied by a tenant or used for commercial purposes such as residences shown to prospective buyers as models. Any increase in value of this classified property attributable to subdivision of, improvements other than buildings, or the construction of either a new single-family residence or a duplex on the property by the builder is excluded from taxation under this Subchapter as long as the builder continues to hold the property for sale. In no event shall this exclusion extend for more than three years from the time the improved property was first subject to being listed for taxation by the builder.
(b) Commercial Property. – Commercial real property held for sale by a builder is designated a special class of property under authority of Article V, Sec. 2(2) of the North Carolina Constitution. For purposes of this subsection, "commercial real property" is real property that is intended to be sold and used for commercial purposes immediately or after improvement. Any increase in value of this classified property attributable to subdivision of or other improvements made to the property, by the builder, is excluded from taxation under this Subchapter as long as the builder continues to hold the property for sale. The exclusion authorized by this subsection ends at the earlier of the following:
(1)Five years from the time the improved property was first subject to being listed for taxation by the builder.
(2)Issuance of a building permit.
(3)Sale of the property.
(c) Repealed. (This exclusion now only requires a one time application pursuant to 105-282.1)
(d) In appraising property classified under this section, the assessor shall specify what portion of the value is an increase attributable to subdivision or other improvement by the builder."
This act is effective for taxes imposed for taxable years beginning on or after July 1, 2016, and applies to subdivision of or other improvements made on or after July 1, 2015.
Exclusion for elderly/disabled persons 65 years old as of January 1 of the current year or totally and permanently disabled, is a permanent resident of North Carolina, and whose last years' income does not exceed thirty one thousand dollars ($31,000).
One time application required.
Homestead Circuit Breaker Deferment
The Homestead Circuit Breaker is the deferral of property taxes that exceed tax limitation. This tax deferment program is for North Carolina residents who meet all the qualifications for the homestead exclusion plus they have owned and occupied their permanent residence for at least five years and their income does not exceed forty six thousand five hundred dollars ($46,500).
The deferred taxes are a lien on your property. Interest accrues on deferred taxes as if they had been payable on the dates on which they would have originally become due.
An annual application is required.
Disabled Veterans Exclusion
Exclusion for honorably discharged veterans whose disability is service connected and has been certified by the Department of Veterans Affairs as 100% permanently and totally disabling or the surviving spouse of an honorably discharged disabled veteran who has never remarried.
Their is no age or income requirement.
One-time application is required.
Present Use Value Deferment
Use Value Deferment for property involved in agriculture, horticulture, and forestry endeavors. Qualifications include minimum acreage, sound management plans, and minimum income requirements.
This Deferment also includes Wildlife Habitat Conservation and requires a Wildlife Habitat Conservation agreement with the State of North Carolina. In order to qualify up to 100 acres, the property must be habitat for an animal on the Endangered Species list for North Carolina.
One-time application is required.
APPLICATIONS FOR EXCLUSION/DEFERMENT TAX RELIEF
APPLICATIONS FOR PROPERTY TAX PRESENT USE VALUE DEFERMENT - DEADLINE TO TIMELY FILE A FIRST TIME APPLICATION IS JANUARY 31 OF EACH YEAR
Form AV5 Application for Present Use Deferment (web fill and print)
Form AV5 Application for Present Use Deferment (blank print only)
Form AV56 Application for Wildlife Conservation
Form AV3 Voluntary Payment of Deferred Taxes without disqualification
Form AV6 Request for Voluntary Disqualification
Form AV7 Request for Estimate of Deferred Taxes