GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1993

H	1 

HOUSE BILL 1311

Short Title:  Use Value Rollback.	(Public)
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Sponsors: Representatives Jack Hunt, James (Co-sponsors); Lutz, Culpepper, Rogers, and Hall.
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Referred to:  Finance.
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May 10, 1993

A BILL TO BE ENTITLED
AN ACT TO PROVIDE THAT WHEN FARMLAND THAT IS TAXED ON THE BASIS OF ITS PRESENT USE VALUE IS CONVEYED BY THE OWNER TO THE LESSEE WHO WAS ALREADY CULTIVATING THE LAND, THERE IS NO ROLLBACK OF DEFERRED TAXES.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-277.3(c) reads as rewritten:
"(c)	In addition, property may come within one of the classifications described in subsection (a) of this section if, at the time title passed to the present owner, the property was appraised at its present use value or was eligible for appraisal at its present use value pursuant to subsection (a) and one of the following conditions was present:  (i) the present owner owned other property classified under subsection (a) or (ii) the present owner was renting the property from the former owner and cultivating it.  Classification pursuant to this subsection shall not affect any liability for deferred taxes under G.S. 105-277.4(c) if such taxes were otherwise due at the time title passed to the present owner."
Sec. 2.  G.S. 105-277.4(c) reads as rewritten:
"(c)	Property meeting the conditions herein set forth 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 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 and, except as provided in G.S. 105-277.3(c), become payable only if one or more of the following conditions occur: (i) the owner conveys the property to anyone other than a relative of the owner, (ii) ownership of the property passes to anyone other than a relative by will or intestacy, (iii) ownership of the property passes to a corporation as defined in G.S. 105-277.2(4)b from anyone other than its principal shareholders or from such a corporation to anyone other than its principal shareholders, or (iv) the property loses its eligibility for the benefit of this classification for some other reason. 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."
Sec. 3.  This act is effective for taxes imposed for taxable years beginning on or after July 1, 1993.  Notwithstanding the provisions of G.S. 105-277.4(a), an application for the benefit provided in this act for the 1993-94 tax year shall be considered timely if it is filed on or before September 1, 1993.