GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 1859

Short Title:  Eliminate Use Value Rollback.	(Public)

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Sponsors: Representative Creech.

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Referred to:  Rules, Calendar, and Operations of the House.

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A BILL TO BE ENTITLED
AN ACT TO PROVIDE THAT THE AMOUNT OF TAX REDUCTION DUE TO USE VALUE ASSESSMENT OF FARM PROPERTY IS NOT A LIEN ON THE PROPERTY AND IS NOT REQUIRED TO BE PAID WHEN THE PROPERTY IS SOLD OR OTHERWISE FAILS TO QUALIFY FOR USE VALUE ASSESSMENT.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-277.3(b2) reads as rewritten:
"(b2)	Exception to Ownership Requirements. –If land fails to meet an ownership requirement due to a change of ownership, land may qualify for classification in the hands of the new owner if both of the following conditions are met, even if the new owner does not meet all of the ownership requirements of subsections (b) and (b1) of this section with respect to the land:
(1)	The land was appraised at its present use value or was eligible for appraisal at its present use value at the time title to the land passed to the new owner.
(2)	At the time title to the land passed to the new owner, the owner owned other land classified under subsection (a)."
Section 2. G.S. 105-277.4 reads as rewritten:
"§ 105-277.4.  Agricultural, horticultural and forestland – Application; appraisal at use value; appeal.
(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, or is property annexed subject to G.S. 160A-37(f1) or G.S. 160A-49(f1), 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. Upon a request for a certification pursuant to G.S. 160A-37(f1) or G.S.160A-49(f1), or any change in the certification, the assessor for the county where the land subject to the annexation is located shall, within 30 days, determine if the land meets the requirements of G.S. 160A-37(f1)(2) or G.S. 160A-49(f1)(2) and report the results of its findings to the city.
(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)	Taxation. – Land meeting the conditions for classification under G.S. 105-277.3 shall be taxed on the basis of the value of the land for its present use. 
				(e)	Repealed by Session Laws 1997-270, s. 3."
Section 3.  This act is effective for taxes imposed for taxable years beginning on or after July 1, 2001.