GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999

HOUSE BILL 1656
RATIFIED BILL

AN ACT TO AUTHORIZE THE APPOINTMENT OF A SPECIAL BOARD OF EQUALIZATION AND REVIEW FOR LINCOLN COUNTY.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 105-322 reads as rewritten:
"§ 105-322.  Lincoln County board of equalization and review.
	(a)  Board Composed of Commissioners if Special Board Not Appointed. –If the board of county commissioners does not appoint a special board of equalization and review as provided in this section, the board of equalization and review of the county shall be composed of the members of the board of county commissioners.
(a1)	Appointment of Special Board. – Upon the adoption of a resolution so providing, the board of commissioners is authorized to appoint a special board of equalization and review to carry out the duties imposed under this section.  The special board shall be composed of five members and three alternate members.  The board of commissioners shall designate a chair of the special board from the membership of the board.  The special board shall elect a vice-chair from its membership to serve as acting chair in the absence of the chair as necessary.  To be eligible for appointment to the special board, the board of county commissioners must find that the person has satisfactory knowledge of or experience in real estate, fee appraisals, banking, farming, or other business management.
Members of the special board shall serve a term of two years.  No member may serve more than three consecutive terms.  Vacancies shall be filled by the board of county commissioners; a successor appointed to fill a vacancy shall serve for the remainder of the term.  Members of the special board shall serve at the pleasure of the board of county commissioners.  
The resolution creating the special board shall be adopted not later than the first Monday in March of the year for which it is to be effective and shall continue in effect until revised or rescinded.  It shall be entered in the minutes of the meeting of the board of commissioners and a copy thereof shall be forwarded to the Department of Revenue within 15 days after its adoption.
	(a2)	Quorum; Alternates. – A majority of the members of the special board shall constitute a quorum for the purpose of transacting business.  A decision of the special board shall be made by a majority of the members present.  An alternate member of the special board shall have all the powers and duties of a regular board member when sitting as a member of the board or of any subcommittee or panel created by the board.  The board of county commissioners shall adopt a resolution setting forth any other provisions it deems necessary to govern the proceedings of the special board and any subcommittee or panel created by the special board.
(b)	Compensation. – The board of county commissioners shall fix the compensation and allowances to be paid members of the board of equalization and review for their services and expenses.
(c)	Oath. – Each member of the board of equalization and review shall take the oath required by Article VI, § 7 of the North Carolina Constitution with the following phrase added to it: 'that I will not allow my actions as a member of the board of equalization and review to be influenced by personal or political friendships or obligations,'.  The oath must be filed with the clerk of the board of county commissioners.
(d)	Clerk and Minutes. – The assessor or a person designated by the assessor shall serve as clerk to the board of equalization and review, shall be present at all meetings, shall maintain accurate minutes of the actions of the board, shall draft all written decisions of the special board, and shall give to the board such information as the clerk may have or can obtain with respect to the listing and valuation of taxable property in the county.  The chair of the special board shall review all written decisions drafted by the clerk.  Only the chair of the special board or, in the chair's absence, the vice-chair can execute the decisions of the special board.
(e)	Time of Meeting. –Except as otherwise provided in this section, each year the board of equalization and review shall hold its first meeting not earlier than the first Monday in April and not later than the first Monday in May.  The board shall complete its duties on or before the advertised adjournment date unless, in its opinion, a longer period of time is necessary or expedient to a proper execution of its responsibilities. Except as provided in subdivision (g)(7) of this section, the board may not sit later than July 1 except to hear and determine requests made under the provisions of subdivision (g)(2), below, when such requests are made within the time prescribed by law.  The board shall meet at such times as it deems reasonably necessary to perform its statutory duties and to receive requests and hear the appeals of taxpayers under the provisions of this section.
(f)	Notice of Meetings and Adjournment. – A notice of the date, hours, place, and purpose of the first meeting of the board of equalization and review shall be published at least three times in some newspaper having general circulation in the county, the first publication to be at least 10 days prior to the first meeting.  The notice shall also state the dates and hours on which the board will meet following its first meeting and the date on which it expects to adjourn; it shall also carry a statement that in the event of earlier or later adjournment, notice to that effect will be published in the same newspaper.  Should a notice be required on account of earlier adjournment, it shall be published at least once in the newspaper in which the first notice was published, such publication to be at least five days prior to the date fixed for adjournment.  Should a notice be required on account of later adjournment, it shall be published at least once in the newspaper in which the first notice was published, such publication to be prior to the date first announced for adjournment.
(g)	Powers and Duties. – The board of equalization and review has the following powers and duties:
(1)	Duty to Review Tax Lists. – The board shall examine and review the tax lists of the county for the current year to the end that all taxable property shall be listed on the abstracts and tax records of the county and appraised according to the standard required by G.S. 105-283, and the board shall correct the abstracts and tax records to conform to the provisions of this Subchapter.  In carrying out its responsibilities under this subdivision (g)(1), the board, on its own motion or on sufficient cause shown by any person, shall:
a.	List, appraise, and assess any taxable real or personal property that has been omitted from the tax lists.
b.	Correct all errors in the names of persons and in the description of properties subject to taxation.
c.	Increase or reduce the appraised value of any property that, in the board's opinion, has been listed and appraised at a figure that is below or above the appraisal required by G.S. 105-283; however, the board shall not change the appraised value of any real property from that at which it was appraised for the preceding year except in accordance with the terms of G.S. 105-286 and 105-287.
d.	Cause to be done whatever else is necessary to make the lists and tax records comply with the provisions of this Subchapter.
e.	Embody actions taken under the provisions of subdivisions (g)(1)a through (g)(1)d, above, in appropriate orders and have the orders entered in the minutes of the board.
f.	Give written notice to the taxpayer at the taxpayer's last-known address in the event the board, by appropriate order, increases the appraisal of any property or lists for taxation any property omitted from the tax lists under the provisions of this subdivision (g)(1).
(2)	Duty to Hear Taxpayer Appeals. – On request, the board of equalization and review shall hear any taxpayer who owns or controls property taxable in the county with respect to the listing or appraisal of the taxpayer's property or the property of others.
a.	A request for a hearing under this subdivision (g)(2) shall be made in writing to or by personal appearance before the board prior to its adjournment.  However, if the taxpayer requests review of a decision made by the board under the provisions of subdivision (g)(1), above, notice of which was mailed fewer than 15 days prior to the board's adjournment, the request for a hearing thereon may be made within 15 days after the notice of the board's decision was mailed.
b.	Taxpayers may file separate or joint requests for hearings under the provisions of this subdivision (g)(2) at their election.
c.	At a hearing under provisions of this subdivision (g)(2), the board, in addition to the powers it may exercise under the provisions of subdivision (g)(3), below, shall hear any evidence offered by the appellant, the assessor, and other county officials that is pertinent to the decision of the appeal.  Upon the request of an appellant, the board shall subpoena witnesses or documents if there is a reasonable basis for believing that the witnesses have or the documents contain information pertinent to the decision of the appeal. 
d.	On the basis of its decision after any hearing conducted under this subdivision (g)(2), the board shall adopt and have entered in its minutes an order reducing, increasing, or confirming the appraisal appealed or listing or removing from the tax lists the property whose omission or listing has been appealed.  The board shall notify the appellant by mail as to the action taken on the appeal not later than 30 days after the board's adjournment.
(3)	Powers in Carrying Out Duties. – In the performance of its duties under subdivisions (g)(1) and (g)(2), above, the board of equalization and review may exercise the following powers:
a.	It may appoint committees composed of its own members or other persons to assist it in making investigations necessary to its work.  It may also employ expert appraisers in its discretion.  The expense of the employment of committees or appraisers shall be borne by the county.  The board may, in its discretion, require the taxpayer to reimburse the county for the cost of any appraisal by experts demanded by the taxpayer if the appraisal does not result in material reduction of the valuation of the property appraised and if the appraisal is not subsequently reduced materially by the board or by the Department of Revenue.
b.	The board, in its discretion, may examine any witnesses and documents.  It may place any witnesses under oath administered by any member of the board.  It may subpoena witnesses or documents on its own motion, and it must do so when a request is made under the provisions of subdivision (g)(2)c, above.
	   A subpoena issued by the board shall be signed by the chair of the board, directed to the witness or to the person having custody of the document, and served by an officer authorized to serve subpoenas.  Any person who willfully fails to appear or to produce documents in response to a subpoena or to testify when appearing in response to a subpoena shall be guilty of a Class 1 misdemeanor.
(4)	Power to Submit Reports. – Upon the completion of its other duties, the board may submit to the Department of Revenue a report outlining the quality of the reappraisal, any problems it encountered in the reappraisal process, the number of appeals submitted to the board and to the Property Tax Commission, the success rate of the appeals submitted, and the name of the firm that conducted the reappraisal.  A copy of the report should be sent by the board to the firm that conducted the reappraisal. 
(5)	Duty to Appoint Motor Vehicle Review Subcommittee. – The chair of the board of equalization and review shall appoint a subcommittee at the board's first meeting of the calendar year.  The subcommittee shall hear and decide all appeals relating to the appraisal, situs, and taxability of classified motor vehicles under G.S. 105-330.2(b) and may meet as needed to exercise this authority.  The subcommittee shall consist of three board members and three alternate members, which may include the alternate board members.  Three members shall constitute a quorum for the purpose of transacting business.  A decision of the subcommittee shall be made by a majority of the members.
(6)	Power to Designate Reappraisal Year Panels. – In any reappraisal year, the chair of the board of equalization and review may divide the board into separate panels consisting of three members, which may include the alternate board members.  The chair shall designate one member of each panel to serve as its chair and may change the members of the panels during the year.  Three members of each panel shall constitute a quorum for the purpose of transacting business.  A decision of the panel shall be made by a majority of the members.  A decision of a panel constitutes a decision of the board of equalization and review.
(7)	Duty to Change Abstracts and Records After Adjournment. – Following adjournment upon completion of its duties under subdivisions (g)(1) and (g)(2) of this section, the board shall continue to meet to carry out the following duties:
a.	To hear and decide all appeals relating to discovered property under G.S. 105-312(d) and (k).
b.	To hear and decide all appeals relating to the appraisal, situs, and taxability of classified motor vehicles under G.S. 105-330.2(b), as provided in subdivision (g)(5) of this section.
c.	To hear and decide all appeals relating to audits conducted under G.S. 105-296(j) and (l) of property classified at present-use value and property exempted or excluded from taxation."
Section 2.  Two of the initial five appointees to the special board of equalization and review shall be appointed to serve a one-year term.
Section 3.  This act applies only to Lincoln County.
Section 4.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 30th day of June, 2000.

	─────────────────── 
	Marc Basnight
	President Pro Tempore of the Senate

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	James B. Black
				eaker of the House of Representatives