A BILL TO BE ENTITLED
AN ACT to freeze the appraised value of the permanent residence of certain seniors and to amend the constitution to permit a limitation on the increase in the appraised value of certain residences.
The General Assembly of North Carolina enacts:
SECTION 1.  Section 2 of Article V of the North Carolina Constitution is amended by adding a new subsection to read:
"(8)	Notwithstanding subsections (2) and (5) of this section, the General Assembly may both enact general laws uniformly applicable throughout the State requiring that during a general reappraisal a county may not increase the growth in the assessed value of a permanent residence by more than an amount specified in the law and enact general laws uniformly applicable throughout the State requiring that during a general reappraisal a county may vary the increase of the growth in the assessed value of a permanent residence on the basis of whether the owner has occupied the property as a permanent residence for at least five years."
SECTION 2.  The amendment set out in Section 1 of this act shall be submitted to the qualified voters of the State at the general election to be held in November 2007.  The qualified election shall be conducted under the laws then governing elections in the State.  Ballots, voting systems, or both may be used in accordance with Chapter 163 of the General Statutes.  The question to be used in the voting systems and ballots shall be:
"[ ]FOR	[ ]AGAINST
Constitutional amendment authorizing the General Assembly to limit the growth in the assessed value of a permanent residence owned and occupied by a qualifying owner."
SECTION 3.  If the majority of the votes cast on the question are in favor of the amendment set out in Section 1 of this act, the State Board of Elections shall certify that amendment to the Secretary of State.  The amendment becomes effective upon this certification.  The Secretary of State shall enroll the amendment so certified among the permanent records of that office.
SECTION 4.  G.S. 105‑283 reads as rewritten:
"§ 105‑283.  Uniform appraisal standards.
Except as provided in G.S. 105‑277.1B, all property, real and personal, shall as far as practicable be appraised or valued at its true value in money. When used in this Subchapter, the words "true value" shall be interpreted as meaning market value, that is, the price estimated in terms of money at which the property would change hands between a willing and financially able buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of all the uses to which the property is adapted and for which it is capable of being used. For the purposes of this section, the acquisition of an interest in land by an entity having the power of eminent domain with respect to the interest acquired shall not be considered competent evidence of the true value in money of comparable land."
SECTION 5.  Article 12 of Chapter 105 of the General Statutes is amended by adding a new section to read:
"§ 105‑277.1B. Senior homestead tax relief.
(a)	Classification. – A permanent residence owned and occupied by a qualifying owner is designated a special class of property under Article V, Section 2(2) of the North Carolina Constitution and is taxable in accordance with this section.
(b)	Definitions. – The definitions provided in G.S. 105‑277.1 apply to this section.
(c)	Qualifying Owner. – For the purpose of qualifying for the senior homestead tax relief under this section, a qualifying owner is an owner who meets all of the following requirements as of January 1 preceding the taxable year for which the benefit is claimed:
(1)	The owner is at least 70 years of age.
(2)	The owner has occupied the property as a permanent residence for at least five years.
(3)	The owner is a North Carolina resident.
(d)	Limitation. – Except as provided in subsection (e) of this section, the appraised value of the permanent residence of a qualifying owner shall not increase at the time of subsequent general reappraisals conducted pursuant to G.S. 105‑286 after July 1, 2008. 
(e)	Exceptions. – The county shall reappraise the permanent residence of a qualifying owner at its true value in a year in which any of the following conditions are met:
(1)	There is a physical change in the land or to improvements on the land other than a change listed in G.S. 105‑287(b). A residence reappraised at its true value under this subdivision shall be subject to subsection (d) of this section at the time of subsequent reappraisals conducted pursuant to G.S. 105‑286.
(2)	Except as provided in subsection (f) of this section, the qualifying owner no longer occupies the residence as a permanent residence. 
(f)	Temporary Absence. –  An otherwise qualifying owner does not lose the benefit of this tax relief because of a temporary absence from his or her permanent residence for reasons of health, or because of an extended absence while confined to a rest home or nursing home, so long as the residence is unoccupied or occupied by the owner's spouse or other dependent.
(g)	Application. – An application for property tax relief provided by this section should be filed during the regular listing period, but may be filed and must be accepted at any time up to and through June 1 preceding the tax year for which the relief is claimed. Persons may apply for this property tax relief by entering the appropriate information on a form made available by the assessor under G.S. 105‑282.1.
(h)	Multiple Ownership. – When a permanent residence is owned and occupied by two or more persons other than husband and wife, no property tax relief is allowed under this section unless all of the owners qualify."
SECTION 6.  G.S. 150‑282.1(a)(2) reads as rewritten:
"(2)	Single application required. – An owner of one or more of the following properties eligible for a property tax benefit must file an application for the benefit to receive it. Once the application has been approved, the owner does not need to file an application in subsequent years unless new or additional property is acquired or improvements are added or removed, necessitating a change in the valuation of the property, or there is a change in the use of the property or the qualifications or eligibility of the taxpayer necessitating a review of the benefit.
a.	Property exempted from taxation under G.S. 105‑278.3, 105‑278.4, 105‑278.5, 105‑278.6, 105‑278.7, or 105‑278.8.
b.	Special classes of property excluded from taxation under G.S. 105‑275(3), (7), (8), (12), (17), (18), (19), (20), (21), (35), (36), (38), (39), or (41) or under G.S. 131A‑21.
c.	Special classes of property classified for taxation at a reduced valuation under G.S. 105‑277(h), 105‑277.1, 105‑277.10, 105‑277.13, 105‑278.
d.	Property owned by a nonprofit homeowners' association but where the value of the property is included in the appraisals of property owned by members of the association under G.S. 105‑277.8.
e.	Special classes of property eligible for tax relief under G.S. 105‑277.1B."
SECTION 7.  G.S. 105‑309(f) reads as rewritten:
"(f)	The assessor must print a homestead tax relief notice on each abstract or on an information sheet distributed with the abstract. The abstract or sheet must include the address and telephone number of the assessor below the notice required by this section. The notice must be in the form required by the Department of Revenue designed to notify the taxpayer of his or her rights and responsibilities under the homestead property tax exclusion provided in G.S. 105‑277.1 and the senior homestead tax relief provided in G.S. 105‑277.1B.
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SECTION 8.  Sections 2, 4, 5, and 6 of this act become effective only if the constitutional amendment proposed by Section 1 of this act is approved as provided in Sections 2 and 3 of this act.  If the constitutional amendment is approved, Sections 4 through 7 of this act become effective for taxes imposed for taxable years beginning on or after July 1, 2008.  The remainder of this act is effective when it becomes law.