North Carolina SB 1187: Expand PUV.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2009
S 1
SENATE BILL 1187

Short Title: Expand PUV. (Public)
Sponsors: Senators Tillman, Clodfelter, Blue, Brunstetter, Hartsell, Hoyle, Jenkins, Stein;
and East.
Referred to: Finance.
May 18, 2010
*S1187-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO EXPAND THE EXCEPTIONS TO OWNERSHIP REQUIREMENTS FOR 2
AGRICULTURAL LAND UNDER THE PROPERTY TAX PRESENT-USE VALUE 3
PROGRAM. 4
The General Assembly of North Carolina enacts: 5
SECTION 1. G.S. 105-277.3(b2) reads as rewritten: 6
"§ 105-277.3. Agricultural, horticultural, and forestland – Classifications. 7
... 8
(b2) (Effective for taxes imposed for taxable years beginning on or after July 1, 9
2008) Exceptions to Ownership Requirements. – Notwithstanding the provisions of subsections 10
(b) and (b1) of this section, land may qualify for classification in the hands of the new owner if 11
all of the conditions listed in either subdivision of this subsection are is met, even if the new 12
owner does not meet all of the ownership requirements of subsections (b) and (b1) of this 13
section with respect to the land. 14
(1) Continued use. – If the land qualifies for classification in the hands of the 15
new owner under the provisions of this subdivision, then any deferred taxes 16
remain a lien on the land under G.S. 105-277.4(c), the new owner becomes 17
liable for the deferred taxes, and the deferred taxes become payable if the 18
land fails to meet any other condition or requirement for classification. Land 19
qualifies for classification in the hands of the new owner if all of the 20
following conditions are met: 21
a. The land was appraised at its present use value at the time title to the 22
land passed to the new owner. 23
b. The new owner acquires the land and continues to use the land for 24
the purpose for which it was classified under subsection (a) of this 25
section while under previous ownership. 26
c. The new owner has timely filed an application as required by 27
G.S. 105-277.4(a) and has certified that the new owner accepts 28
liability for any deferred taxes and intends to continue the present use 29
of the land. 30
(2) Expansion of existing unit. – Land qualifies for classification in the hands of 31
the new owner if, atif one of the following conditions listed in this 32
subdivision is met. The new owner must timely file an application as 33
required by G.S. 105-277.4(a). The conditions are: 34
a. At the time title passed to the new owner, the land was not appraised 35
at its present-use value but was being used for the same purpose and 36

General Assembly of North Carolina Session 2009
Page 2 Senate Bill 1187-First Edition
was eligible for appraisal at its present-use value as other land 1
already owned by the new owner and classified under subsection (a) 2
of this section. 3
b. At the time title passed to the new owner, the land was not eligible 4
for appraisal at present-use value, but the new owner owns other land 5
that is classified as agricultural land under subsection (a) of this 6
section and acquires the new land for agricultural use. The recently 7
acquired land loses its present-use value eligibility, if the new owner 8
does not begin using the land as agricultural land within one year 9
from the date of acquisition." 10
SECTION 2. This act becomes effective for taxes imposed for taxable years 11
beginning on or after July 1, 2011, and applies to property acquired on or after January 1, 2010. 12