AN ACT to provide that the governing body of a taxing unit may collect property taxes for certain newly annexed property over a three‑year period and delay the accrual of interest accordingly.

The General Assembly of North Carolina enacts:

SECTION 1.  A taxing unit's governing body may by resolution provide that, notwithstanding the provisions of G.S. 105‑360 regarding the due date and accrual of interest, G.S. 105‑380 and G.S. 105‑381 regarding the release, refund, and compromise of taxes, and G.S. 160A‑58.10 regarding the taxation of newly annexed property, property taxes for the partial fiscal year October 1, 2005, through June 30, 2006, shall be collected over a three‑year period with one‑third due and payable on September 1, 2006, one‑third due and payable on September 1, 2007, and the remaining one‑third due and payable on September 1, 2008. The resolution may provide that interest accrues on unpaid property taxes only to the extent that the property taxes have become due and payable under the payment schedule set out in the resolution. To the extent property taxes are due and payable pursuant to a resolution adopted under this act, interest accruing on taxes that remain unpaid shall be computed according to the schedule stated in G.S. 105‑360. A resolution adopted pursuant to this act applies only to taxes for the partial fiscal year October 1, 2005, through June 30, 2006, on property located in an area that was annexed between January 1, 2003, and January 1, 2006, and for which effective date of the annexation was set by judicial order.
SECTION 2.  If a resolution adopted by a taxing unit's governing body pursuant to this act delays the due date, accrual of interest, or both for any property taxes, the tax collector's obligations under G.S. 160A‑58.10 and G.S. 105‑360 with respect to those taxes are delayed to the same extent.  
SECTION 3.  This act is effective when it becomes law.
In the General Assembly read three times and ratified this the 30th day of June, 2006.

	s/ Beverly E. Perdue
	 President of the Senate

	s/ Richard T. Morgan
	 Speaker Pro Tempore of the House of Representatives

	s/ Michael F. Easley
	 Governor

Approved 2:59 p.m. this 10th day of July, 2006