A BILL TO BE ENTITLED
AN ACT to reduce the discrepancy between the property tax value of property and its market value and to treat mobile homes the same as other homes with respect to property tax liens.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑286 reads as rewritten: 
"§ 105‑286.  Time for general reappraisal of real property.
(a)	Quadrennial Plan. – Unless the date shall be postponed as provided in subdivision (a)(2), below, each county of the State, as of January 1 of the year prescribed in the schedule set out in subdivision (a)(1), below, and every fourth year thereafter, shall reappraise all real property in accordance with the provisions of G.S. 105‑283 and 105‑317.(1)	Schedule of Initial Reappraisals. – 
Division One – 1972: Avery, Camden, Cherokee, Cleveland, Cumberland, Guilford, Harnett, Haywood, Lee, Montgomery, Northampton, and Robeson.
Division Two – 1973: Caldwell, Carteret, Columbus, Currituck, Davidson, Gaston, Greene, Hyde, Lenoir, Madison, Orange, Pamlico, Pitt, Richmond, Swain, Transylvania, and Washington.
Division Three – 1974: Ashe, Buncombe, Chowan, Franklin, Henderson, Hoke, Jones, Pasquotank, Rowan, and Stokes.
Division Four – 1975: Alleghany, Bladen, Brunswick, Cabarrus, Catawba, Dare, Halifax, Macon, New Hanover, Surry, Tyrrell, and Yadkin.
Division Five – 1976: Bertie, Caswell, Forsyth, Iredell, Jackson, Lincoln, Onslow, Person, Perquimans, Rutherford, Union, Vance, Wake, Wilson, and Yancey.
Division Six – 1977: Alamance, Durham, Edgecombe, Gates, Martin, Mitchell, Nash, Polk, Randolph, Stanly, Warren, and Wilkes.
Division Seven – 1978: Alexander, Anson, Beaufort, Clay, Craven, Davie, Duplin, and Granville.
Division Eight – 1979: Burke, Chatham, Graham, Hertford, Johnston, McDowell, Mecklenburg, Moore, Pender, Rockingham, Sampson, Scotland, Watauga, and Wayne.
(2)	Postponing Scheduled Quadrennial Reappraisal. – If, at the time for reappraisal of real property as required by subsection (a), the sales assessment ratio defined in G.S. 105‑289(h) exceeds .90 for a county, that county may postpone a reappraisal of real property upon adoption by the board of county commissioners of a resolution until the time for the next subsequent reappraisal of real property as required by subsection (a) for that county. A county passing a resolution under this subsection shall promptly submit a copy to the Department of Revenue.
	(c)	Value to Be Assigned Real Property When Not Subject to Appraisal. – In years in which real property within a county is not subject to reappraisal under subsection (a), above, or under G.S. 105‑287, it shall be listed at the value assigned when last appraised under this section or under G.S. 105‑287."
SECTION 2.  G.S. 105‑287 reads as rewritten:
"§ 105‑287.  Changing appraised value of real property in years in which general reappraisal is not made.
(a)	In a year in which a general reappraisal of real property in the county is not made, the assessor shall increase or decrease the appraised value of real property, as determined under G.S. 105‑286, to recognize a change in the property's value resulting from one or more of the reasons listed in this subsection. The reason necessitating a change in the property's value need not be under the control of or at the request of the owner of the affected property.
(1)	Correct a clerical or mathematical error.
(2)	Correct an appraisal error resulting from a misapplication of the schedules, standards, and rules used in the county's most recent general reappraisal.
(2a)	Recognize an increase or decrease in the value of the property resulting from a conservation or preservation agreement subject to Article 4 of Chapter 121 of the General Statutes, the Conservation and Historic Preservation Agreements Act.
(2b)	Recognize an increase or decrease in the value of the property resulting from a physical change to the land or to the improvements on the land, other than a change listed in subsection (b) of this section.
(2c)	Recognize an increase or decrease in the value of the property resulting from a change in the legally permitted use of the property.
(3)	Recognize an increase or decrease in the value of the property resulting from a factor other than one listed in subsection (b).
(b)	In a year in which a general reappraisal of real property in the county is not made, the assessor may not increase or decrease the appraised value of real property, as determined under G.S. 105‑286, to recognize a change in value caused by:
(1)	Normal, physical depreciation of improvements;
(2)	Inflation, deflation, or other economic changes affecting the county in general; or
(3)	Betterments to the property made by:
a.	Repainting buildings or other structures;
b.	Terracing or other methods of soil conservation;
c.	Landscape gardening;
d.	Protecting forests against fire; or
e.	Impounding water on marshland for non‑commercial purposes to preserve or enhance the natural habitat of wildlife.
(c)	An increase or decrease in the appraised value of real property authorized by this section shall be made in accordance with the schedules, standards, and rules used in the county's most recent general reappraisal. An increase or decrease in appraised value made under this section is effective as of January 1 of the year in which it is made and is not retroactive. This section does not modify or restrict the provisions of G.S. 105‑312 concerning the appraisal of discovered property.
(d)	Notwithstanding subsection (a), if a tract of land has been subdivided into lots and more than five acres of the tract remain unsold by the owner of the tract, the assessor may appraise the unsold portion as land acreage rather than as lots. A tract is considered subdivided into lots when the lots are located on streets laid out and open for travel and the lots have been sold or offered for sale as lots since the last appraisal of the property."
SECTION 3.  G.S. 105‑355 reads as rewritten:
"§ 105‑355.  Creation of tax lien; date as of which lien attaches.
(a)	Lien on Real Property. – Regardless of the time at which liability for a tax for a given fiscal year may arise or the exact amount thereof be determined, the lien for taxes levied on a parcel of real property shall attach to the parcel taxed on the date as of which property is to be listed under G.S. 105‑285, and the lien for taxes levied on personal property shall attach to all real property of the taxpayer in the taxing unit on the same date. All penalties, interest, and costs allowed by law shall be added to the amount of the lien and shall be regarded as attaching at the same time as the lien for the principal amount of the taxes. For purposes of this subsection (a):
(1)	Taxes levied on real property listed in the name of a life tenant under G.S. 105‑302 (c)(8) shall be a lien on the fee as well as the life estate.
(2)	Taxes levied on improvements on or separate rights in real property owned by one other than the owner of the land, whether or not listed separately from the land under G.S. 105‑302 (c)(11), shall be a lien on both the improvements or rights and on the land.
(b)	Lien on Mobile Home Listed as Personal Property. – The lien for taxes levied on a mobile home listed as personal property shall attach to the mobile home and to all real property of the taxpayer in the taxing unit on the date as of which property is to be listed under G.S. 105‑285.
(c)	Lien on Personal Property. – Taxes levied on real and personal property (including penalties, interest, and costs allowed by law) shall be a lien on personal property from and after levy or attachment and garnishment of the personal property levied upon or attached."
SECTION 4.  This act is effective for taxes imposed for taxable years beginning on or after July 1, 2008.  The reappraisal schedule in G.S. 105‑286, determined without regard to the amendment to that statute made by Section 1 of this act, applies to a county until the county conducts its next general reappraisal.  When a county conducts its next general reappraisal, the schedule in G.S. 105‑286, as amended by Section 1 of this act, applies to that county.