GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999

SESSION LAW 2000-20
HOUSE BILL 1573

AN ACT TO CLARIFY THE PROPERTY TAX TREATMENT OF A HEALTH CARE FACILITY UNDERTAKEN BY THE MEDICAL CARE COMMISSION PURSUANT TO THE HEALTH CARE FACILITIES FINANCE ACT AND TO EXTEND THE SUNSET ON THE PROPERTY TAX EXEMPTION FOR CONTINUING CARE RETIREMENT CENTERS.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 131A-21 reads as rewritten:
"§ 131A-21.  Tax exemption.
The exercise of the powers granted by this Chapter will be in all respects for the benefit of the people of the State and will promote their health and welfare.  If bonds or notes are issued by the Commission to provide or improve a health care facility, then until the bonds or notes are retired, the facility for which bonds or notes are issued is exempt from property taxes to the extent provided in this section.  If refunding bonds or notes are issued to refund bonds or notes issued to provide or improve a health care facility, the facility will continue to be exempt from property taxes as provided in this section until such time as the refunding bonds or notes are retired, provided that the final maturity of the refunding bonds or notes does not extend beyond the final maturity of the original bonds or notes.
The property tax exemption under this section shall not exceed the lesser of the original principal amount of the bonds or notes or the assessed value for ad valorem tax purposes of the facility.  If bonds or notes are issued to finance more than one health care facility, only that portion of the principal amount of the bonds or notes used to provide or improve the particular facility, including any allocable reserves and financing costs, may be considered for the purpose of determining the amount of the exemption allowable under this section.  The exemption authorized by this section shall begin with the first full tax year of the taxpayer following the issuance of the bonds and notes.  This section does not affect a health care facility's eligibility for a property tax exemption under Subchapter II of Chapter 105 of the General Statutes.
Any bonds or notes issued by the Commission under the provisions of this Chapter shall at all times be free from taxation by the State or any local unit or political subdivision or other instrumentality of the State, excepting inheritance, estate, or gift taxes, income taxes on the gain from the transfer of the bonds and notes, and franchise taxes. The interest on the bonds and notes is not subject to taxation as income."
Section 2.  Subsection (e) of Section 29A.18 of Chapter 212 of the 1998 Session Laws reads as rewritten:
"(e)	Subsection (a) of this section is effective for taxes imposed for taxable years beginning on or after July 1, 1998.  Notwithstanding the provisions of G.S. 105-282.1(a), an application for the benefit provided in subsection (a) of this section for the 1998-99 tax year is timely if it is filed on or before November 15, 1998.  G.S. 105-278.6A is repealed effective for taxes imposed for taxable years beginning on or after July 1, 2001.  The remainder of this section is effective when it becomes law." 
Section 3.  Section 1 of this act becomes effective October 1, 2000, and applies to bonds or notes issued on or after that date.  Section 2 of this act becomes effective July 1, 2000.  The remainder of this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 20th day of June, 2000.

s/	Dennis A. Wicker
President of the Senate

s/	James B. Black
Speaker of the House of Representatives

s/	James B. Hunt, Jr.
Governor

Approved 1:57 p.m. this 26th day of June, 2000