AN ACT to Exclude from property tax real and personal property that is subject to a capital lease with a local school administrative unit.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑275 is amended by adding a new subdivision to read:
"§ 105‑275.  Property classified and excluded from the tax base.
The following classes of property are hereby designated special classes under authority of Article V, Sec. 2(2), of the North Carolina Constitution and shall not be listed, appraised, assessed, or taxed:
…
(43)	Real or tangible personal property that is subject to a capital lease pursuant to G.S. 115C‑531."
SECTION 2.  This act is effective for taxes imposed for taxable years beginning on or after July 1, 2007.
In the General Assembly read three times and ratified this the 1st day of August, 2007.

	s/	 Beverly E. Perdue
	 President of the Senate

	s/	 Joe Hackney
	 Speaker of the House of Representatives

	s/	 Michael F. Easley
	 Governor

Approved 2:41 p.m. this 29th day of August, 2007