North Carolina SB 427: Property Tax Modifications.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 427

Short Title: Property Tax Modifications. (Public)
Sponsors: Senators Moffitt, Hanig, and B. Newton (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 25, 2025
*S427-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY THE MACHINERY ACT OF NORTH CAROLINA. 2
The General Assembly of North Carolina enacts: 3
SECTION 1. G.S. 105-275 reads as rewritten: 4
"§ 105-275. Property classified and excluded from the tax base. 5
The following classes of property are designated special classes under Article V, Sec. 2(2), 6
of the North Carolina Constitution and are excluded from tax: 7
... 8
(16) Non-business Qualified Personal Property. – As used in this subdivision, the 9
term "non-business "qualified personal property" means (i) personal property 10
that is used by the owner of the property for a purpose other than the 11
production of income and is not used in connection with a business. The term 12
includes household furnishings, clothing, pets, lawn tools, and lawn 13
equipment. business and (ii) personal property used by the owner of the 14
property for production of income or in connection with a business, or both, 15
provided the value of the property at the time of acquisition is equal to or less 16
than twenty thousand dollars ($20,000). The term does not include motor 17
vehicles, mobile homes, aircraft, watercraft, or engines for watercraft.the 18
following items: 19
a. Motor vehicles, as defined in G.S. 20-4.01, that are registered pursuant 20
to G.S. 20-50 and not otherwise exempt under this section. 21
b. Mobile homes. 22
c. Aircraft and watercraft required to be registered pursuant to State or 23
federal law and not otherwise exempt under this section. 24
...." 25
SECTION 2. G.S. 105-308 reads as rewritten: 26
"§ 105-308. Duty to list; penalty for failure. 27
Every person in whose name any property is to be listed under the terms of this Subchapter 28
shall list any changes, additions, or subtractions with respect to the property with the assessor 29
within the time allowed by law on an abstract setting forth the information required by this 30
Subchapter. If a person does not timely list property, there is a presumption that no changes, 31
additions, or subtractions with respect to the property to be listed have occurred. 32
In addition to all other penalties prescribed by law, any person whose duty it is to list any 33
changes, additions, or subtractions with respect to property who willfully fails or refuses to list 34
the same within the time prescribed by law shall be guilty of a Class 2 misdemeanor. The If there 35

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 427-First Edition
is a duty to list under this section, the failure to list shall be prima facie evidence that the failure 1
was willful. 2
Any person who willfully attempts, or who willfully aids or abets any person to attempt, in 3
any manner to evade or defeat the taxes imposed under this Subchapter, whether by removal or 4
concealment of property or otherwise, shall be guilty of a Class 2 misdemeanor." 5
SECTION 3. Real and personal property located in the affected area, as defined in 6
Section 1A.4 of S.L. 2024-57, is designated a special class of property under Article V, Section 7
2(2) of the North Carolina Constitution and must have interest accruing on the property 8
administered in accordance with this section. Notwithstanding G.S. 105-360, interest on an 9
underpayment of property tax on real or personal property located in the affected area that (i) 10
accrues for the period of January 7, 2025, through December 31, 2026, and (ii) is due on 11
September 1, 2024, shall not be collected or, to the extent it is collected, shall be carried forward 12
as a credit against the tax due the following year. This section does not apply to classified motor 13
vehicles. 14
SECTION 4. Sections 1 and 2 of this act are effective for taxes imposed for taxable 15
years beginning on or after July 1, 2025. The remainder of this act is effective when it becomes 16
law. 17