A BILL TO BE ENTITLED
AN ACT to make clarifying changes to the property tax laws.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑304(a1) reads as rewritten:
"(a1)	Electronic Listing. – The board of county commissioners may, by resolution, provide for electronic listing of personal property in accordance with procedures prescribed by the board. If the board of county commissioners allows electronic listing of personal property, the assessor must publish this information, including the timetable and procedures for electronic listing, in the notice required by G.S. 105‑296(c)."
SECTION 2.  G.S. 105‑307 reads as rewritten:
"§ 105‑307.  Length of listing period; extension; preliminary work.
(a)	Listing Period. – Unless extended as provided in this section, the period during which property is to be listed for taxation each year begins on the first business day of January and ends on January 31.
(b)	General Extensions. – The board of county commissioners may, by resolution, extend the time during which property is to be listed for taxation as provided in this subsection. Any action by the board of county commissioners extending the listing period must be recorded in the minutes of the board, and notice of the extensions must be published as required by G.S. 105‑296(c). The entire period for listing, including any extension of time granted, is considered the regular listing period for the particular year within the meaning of this Subchapter.
(1)	In nonrevaluation years, the listing period may be extended for up to 30 additional days.
(2)	In years of octennial appraisal of real property, the listing period may be extended for up to 60 additional days.
(3)	If the county has provided for electronic listing of personal property under G.S. 105‑304, the period for electronic listing of business personal property may be extended up to June 1.
(c)	Individual Extensions. – The board of county commissioners shall grant individual extensions of time for the listing of real and personal property upon written request and for good cause shown. The request must be filed with the assessor no later than the ending date of the regular listing period. The board may delegate the authority to grant extensions to the assessor. Extensions granted under this subsection shall not extend beyond April 15. If the county has provided for electronic listing of personal property under G.S. 105‑304, the period for electronic listing of business personal property is as provided in subsection (b) of this section.
(d)	Preliminary Work. – The assessor may conduct preparatory work before the listing period begins, but may not make a final appraisal of property before the day as of which the value of the property is to be determined under G.S. 105‑285."
SECTION 3.  G.S. 105‑330.10 reads as rewritten:
"§ 105‑330.10.  (Effective until July 1, 2009) Disposition of interest.
Sixty percent (60%) of the first month's interest collected on unpaid taxes pursuant to G.S. 105‑330.4 shall be transferred on a monthly basis to the Combined Motor Vehicle and Registration Account created within the Treasurer's Office. The North Carolina Association of County Commissioners shall direct the Treasurer to distribute the funds in the Account to the Division of Motor Vehicles for the purpose of developing and implementing an integrated computer system within the Division of Motor Vehicles that would allow for the combined assessment, billing, and collection of property taxes on motor vehicles and the issuance of registration plates. The Treasurer shall report to the Revenue Laws Study Committee semiannually with the first report due by April 30, 2006. The report shall contain a detailed description of the amount of moneys transferred to the Account and distributed from the Account."
SECTION 4.  G.S. 105‑277.4 is amended by adding a new subsection to read:
"(a1)	Late Application. – Upon a showing of good cause by the applicant for failure to make a timely application as required by subsection (a) of this section, an application may be approved by the board of equalization and review or, if that board is not in session, by the board of county commissioners. An untimely application approved under this subsection applies only to property taxes levied by the county or municipality in the calendar year in which the untimely application is filed. Decisions of the county board may be appealed to the Property Tax Commission."
SECTION 5.  G.S. 105‑321(d) is repealed.
SECTION 6.  G.S. 105‑378 is amended adding a new subsection to read:
"(d)	Enforcement and Collection Delayed Pending Appeal. –  When the board of county commissioners or municipal governing body delivers a tax receipt to a tax collector for any assessment that has been or is subsequently appealed to the Property Tax Commission, the tax collector may not seek collection of taxes or enforcement of a tax lien resulting from the assessment until the appeal has been finally adjudicated. The tax collector, however, may send an initial bill or notice to the taxpayer."
SECTION 7.  G.S. 105‑373(a) reads as rewritten:
"(a)	Annual Settlement of Tax Collector. –
(1)	Preliminary Report. – After July 1 and before he is charged with taxes for the current fiscal year, the tax collector shall make a sworn report to the governing body of the taxing unit showing:
a.	A list of the persons owning real property whose taxes for the preceding fiscal year remain unpaid and the principal amount owed by each person; and
b.	A list of the persons not owning real property whose personal property taxes for the preceding fiscal year remain unpaid and the principal amount owed by each person. (To this list the tax collector shall append his statement under oath that he has made diligent efforts to collect the taxes due from the persons listed out of their personal property and by other means available to him for collection, and he shall report such other information concerning these taxpayers as may be of interest to or required by the governing body, including a report of his efforts to make collection outside the taxing unit under the provisions of G.S. 105‑364.) The governing body of the taxing unit may publish this list in any newspaper in the taxing unit. The cost of publishing this list shall be paid by the taxing unit.
(2)	Insolvents. – Upon receiving the report required by subdivision (a)(1), above the governing body of the taxing unit shall enter upon its minutes the names of persons owing taxes (but who listed no real property) whom it finds to be insolvent, and it shall by resolution designate the list entered in its minutes as the insolvent list to be credited to the tax collector in his settlement.
(3)	Settlement for Current Taxes. – After July 1 and before he is charged with taxes for the current fiscal year, the tax collector shall make full settlement with the governing body of the taxing unit for all taxes in his hands for collection for the preceding fiscal year.
a.	In the settlement the tax collector shall be charged with:
1.	The total amount of all taxes in his hands for collection for the year, including amounts originally charged to him and all amounts subsequently charged on account of discoveries;
2.	All penalties, interest, and costs collected by him in connection with taxes for the current year; and
3.	All other sums collected by him.
b.	The tax collector shall be credited with:
1.	All sums representing taxes for the year deposited by him to the credit of the taxing unit or receipted for by a proper official of the unit;
2.	Releases duly allowed by the governing body;
3.	The principal amount of taxes constituting liens on real property;
4.	The principal amount of taxes included in the insolvent list determined in accordance with subdivision (a)(2), above;
5.	Discounts allowed by law;  
6.	Commissions (if any) lawfully payable to the tax collector as compensation; and
7.	The principal amount of taxes for any assessment appealed to the Property Tax Commission when the appeal has not been finally adjudicated.
		The tax collector shall be liable on his bond for both honesty and faithful performance of duty; for any deficiencies; and, in addition, for all criminal penalties provided by law.
		The settlement, together with the action of the governing body with respect thereto, shall be entered in full upon the minutes of the governing body.
(4)	Disposition of Tax Receipts after Settlement. – Uncollected taxes allowed as credits in the settlement prescribed in subdivision (a)(3), above, whether represented by tax liens held by the taxing unit or included in the list of insolvents, shall, for purposes of collection, be recharged to the tax collector or charged to some other person designated by the governing body of the taxing unit under statutory authority. The person charged with uncollected taxes shall:
a.	Give bond satisfactory to the governing body;
b.	Receive the tax receipts and tax records representing the uncollected taxes;
c.	Have and exercise all powers and duties conferred or imposed by law upon tax collectors; and
d.	Receive compensation as determined by the governing body."
SECTION 8.  This act is effective when it becomes law.