GENERAL ASSEMBLY OF NORTH CAROLINA
1997 SESSION
S.L. 1997-270
The General Assembly of North Carolina enacts:
Section 1. G.S. 40A-6 reads as rewritten:
"§ 40A-6. Reimbursement of owner for taxes paid on condemned property.
(a) An owner whose
property is totally taken in fee simple by a condemnor exercising the power of
eminent domain, under this Chapter or any other statute statute, shall
be entitled to reimbursement from the condemnor of the pro rata portion of real
property taxes paid by the owner which that are allocable to a
period subsequent to vesting of title in the condemnor, or the effective date
of possession of such the real property, whichever is earlier.
(b) An owner who meets the following conditions is entitled to reimbursement from the condemnor for all deferred taxes paid by the owner pursuant to G.S. 105-277.4(c) as a result of the condemnation:
(1) The owner is a natural person whose property is taken in fee simple by a condemnor exercising the power of eminent domain under this Chapter or any other statute.
(2) The owner also owns agricultural land, horticultural land, or forestland that is contiguous to the condemned property and that is in active production.
The definitions in G.S. 105-277.2 apply in this subsection."
Section 2. G.S. 136-121.1 reads as rewritten:
"§ 136-121.1. Reimbursement of owner for taxes paid on condemned property.
(a) A property
owner whose property is totally taken in fee simple by any condemning agency
(as defined in G.S. 133-7(1)) exercising the power of eminent domain, under
this Chapter or any other statute or charter provision, shall be entitled to
reimbursement from the condemning agency of the pro rata portion of real
property taxes paid which that are allocable to a period
subsequent to vesting of title in the agency, or the effective date of
possession of such the real property, whichever is earlier.
(b) An owner who meets the following conditions is entitled to reimbursement from the condemning agency for all deferred taxes paid by the owner pursuant to G.S. 105-277.4(c) as a result of the condemnation:
(1) The owner is a natural person whose property is taken in fee simple by a condemning agency exercising the power of eminent domain under this Chapter or any other statute.
(2) The owner also owns agricultural land, horticultural land, or forestland that is contiguous to the condemned property and that is in active production.
A potential condemning agency that seeks to acquire property by gift or purchase shall give the owner written notice of the provisions of this section. The definitions in G.S. 105-277.2 apply in this subsection."
Section 3. G.S. 105-277.4 reads as rewritten:
"§
105-277.4. Agricultural, horticultural and forestland - Application
for taxation at present-use value. Application; appraisal at use
value; appeal; deferred taxes.
(a) Application. - Property coming within one of the classes defined in G.S. 105-277.3 shall be eligible for taxation on the basis of the value of the property in its present use if a timely and proper application is filed with the assessor of the county in which the property is located. The application shall clearly show that the property comes within one of the classes and shall also contain any other relevant information required by the assessor to properly appraise the property at its present-use value. An initial application shall be filed during the regular listing period of the year for which the benefit of this classification is first claimed, or within 30 days of the date shown on a notice of a change in valuation made pursuant to G.S. 105-286 or G.S. 105-287. A new application is not required to be submitted unless the property is transferred or becomes ineligible for use-value appraisal because of a change in use or acreage.
(b) Appraisal at Present-use Value. - Upon receipt of a properly executed application, the assessor shall appraise the property at its present-use value as established in the schedule prepared pursuant to G.S. 105-317. In appraising the property at its present-use value, the assessor shall appraise the improvements located on qualifying land according to the schedules and standards used in appraising other similar improvements in the county. If all or any part of a qualifying tract of land is located within the limits of an incorporated city or town, the assessor shall furnish a copy of the property record showing both the present-use appraisal and the valuation upon which the property would have been taxed in the absence of this classification to the collector of the city or town. He shall also notify the tax collector of any changes in the appraisals or in the eligibility of the property for the benefit of this classification.
(b1) Appeal. - Decisions of the assessor regarding the qualification or appraisal of property under this section may be appealed to the county board of equalization and review or, if that board is not in session, to the board of county commissioners. Decisions of the county board may be appealed to the Property Tax Commission.
(c) Deferred Taxes. - Property
meeting the conditions for classification under G.S. 105-277.3 shall be taxed
on the basis of the value of the property for its present use. The
difference between the taxes due on the present-use basis and the taxes which
would have been payable in the absence of this classification, together with
any interest, penalties penalties, or costs that may accrue
thereon, shall be a lien on the real property of the taxpayer as provided in
G.S. 105-355(a). The difference in taxes shall be carried forward in the
records of the taxing unit or units as deferred taxes, but shall not be payable,
unless and until the property loses its eligibility for the benefit of this
classification. The tax for the fiscal year that opens in the calendar
year in which a disqualification occurs shall be computed as if the property
had not been classified for that year, and taxes for the preceding three fiscal
years which have been deferred as provided herein, shall immediately be
payable, together with interest thereon as provided in G.S. 105-360 for unpaid
taxes which shall accrue on the deferred taxes due herein as if they had
been payable on the dates on which they originally became due. If only a
part of the qualifying tract of land loses its eligibility, a determination
shall be made of the amount of deferred taxes applicable to that part and that
amount shall become payable with interest as provided above. Upon the
payment of any taxes deferred in accordance with this section for the three
years immediately preceding a disqualification, all liens arising under this
subsection shall be extinguished.
(d) Exceptions. -
Notwithstanding the provisions of subsection (c), if a farm unit loses (c)
of this section, if property loses its eligibility for present use value treatment
classification solely due to a one of the following
reasons, no deferred taxes are due and the lien for the deferred taxes is
extinguished:
(1) There is a change
in income caused by enrollment of land in the federal Conservation Reserve
Program authorized by Title XII of the Food Security Act of 1985 (Pub. L.
99-198), as amended, no deferred taxes shall be owed and all present use value
tax liens shall be extinguished. the property in the federal
conservation reserve program established under 16 U.S.C. Chapter 58.
(e) Notwithstanding
the provisions of subsection (c) of this section, if real property qualified
for present use appraisal
(2) The property
is conveyed by gift to a nonprofit organization and qualifies for exclusion
from the tax base pursuant to G.S. 105-275(12) or G.S. 105-275(29) or G.S.
105-275(29).
(3) The property
is conveyed by gift to the State, a political subdivision of the State, or
the United States, no deferred taxes shall be owed, and all present use
value tax liens are extinguished. States."
Section 4. G.S. 40A-4 reads as rewritten:
"§ 40A-4. No prior purchase offer necessary.
The power to acquire property by condemnation shall not depend on any prior effort to acquire the same property by gift or purchase, nor shall the power to negotiate for the gift or purchase of property be impaired by initiation of condemnation proceedings. A potential condemnor who seeks to acquire property by gift or purchase shall give the owner written notice of the provisions of G.S. 40A-6."
Section 5. This act is effective when it becomes law and applies to transfers made on or after August 1, 1997.
In the General Assembly read three times and ratified this the 24th day of June, 1997.
s/ Dennis A. Wicker
President of the Senate
s/ Harold J. Brubaker
Speaker of the House of Representatives
s/ James B. Hunt, Jr.
Governor
Approved 4:25 p.m. this 3rd day of July, 1997