Bill Summary – FastDemocracy

FILED SENATE
                                                                                          Mar 29, 2023
                          GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                 S.B. 408
                                      SESSION 2023           PRINCIPAL CLERK
     S                                                                    D
                               SENATE BILL DRS35159-MCf-27
     Short Title:   Property Tax Modifications.                                                  (Public)
     Sponsors:      Senators Moffitt, Hanig, and B. Newton (Primary Sponsors).
     Referred to:
                                     A BILL TO BE ENTITLED
 AN ACT TO MODIFY THE MACHINERY ACT OF NORTH CAROLINA.
 The General Assembly of North Carolina enacts:
              SECTION 1. G.S. 105-275 reads as rewritten:
 "§ 105-275. Property classified and excluded from the tax base.
     The following classes of property are designated special classes under Article V, Sec. 2(2),
 of the North Carolina Constitution and are excluded from tax:
              …
              (16) Non-business Qualified Personal Property. —As used in this subdivision, the
                     term "non-business "qualified personal property" means (i) personal property
                     that is used by the owner of the property for a purpose other than the
                     production of income and is not used in connection with a business. The term
                     includes household furnishings, clothing, pets, lawn tools, and lawn
                     equipment. business and (ii) personal property used by the owner of the
                     property for production of income or in connection with a business, or both,
                     provided the value of the property at the time of acquisition is equal to or less
                     than twenty thousand dollars ($20,000). The term does not include the
                     following items:
                     a.      motor vehicles, mobile homes, aircraft, watercraft, or engines for
                             watercraft.Motor vehicles, as defined in G.S. 20-4.01, that are
                             registered pursuant to G.S. 20-50 and not otherwise exempt under this
                             section.
                     b.      Mobile homes.
                     c.      Aircraft and watercraft required to be registered pursuant to State or
                             federal law and not otherwise exempt under this section.
              …."
              SECTION 2. G.S. 105-308 reads as rewritten:
 "§ 105-308. Duty to list; penalty for failure.
     Every person in whose name any property is to be listed under the terms of this Subchapter
 shall list any changes, additions, or subtractions with respect to the property with the assessor
 within the time allowed by law on an abstract setting forth the information required by this
 Subchapter. If a person does not timely list property, there is a presumption that no changes,
 additions, or subtractions with respect to the property to be listed have occurred.
     In addition to all other penalties prescribed by law, any person whose duty it is to list any
 changes, additions, or subtractions with respect to property who willfully fails or refuses to list
 the same within the time prescribed by law shall be guilty of a Class 2 misdemeanor. The If there
                                   *DRS35159-MCf-27*
     General Assembly Of North Carolina                                                       Session 2023
 is a duty to list under this section, the failure to list shall be prima facie evidence that the failure
 was willful.
      Any person who willfully attempts, or who willfully aids or abets any person to attempt, in
 any manner to evade or defeat the taxes imposed under this Subchapter, whether by removal or
 concealment of property or otherwise, shall be guilty of a Class 2 misdemeanor."
              SECTION 3. Notwithstanding G.S. 105-285 and G.S. 105-317, a county may
 change the value of real property after January 1, 2023, effective for the taxable year beginning
 July 1, 2023, based upon the schedule of values used to appraise real property in the county for
 its last reappraisal if the county adopted a resolution to postpone a 2023 reappraisal between
 January 1, 2023, and June 30, 2023. This authorization does not affect the requirement in
 G.S. 105-286 to reappraise property at least once every eight years. If a county changes its values
 of real property pursuant to this section, the schedule of values adopted by the board of county
 commissioners and used to appraise real property in the county for its last reappraisal will remain
 the schedule of values to be used to appraise real property until the county reappraises all real
 property in accordance with G.S. 105-286.
              SECTION 4. Sections 1 and 2 of this act are effective for taxes imposed for taxable
 years beginning on or after July 1, 2023. The remainder of this act is effective when it becomes
 law.
     Page 2                                                                            DRS35159-MCf-27
Statutes affected: 
Filed: 105-275, 105-308
Edition 1: 105-275, 105-308
Edition 2: 105-275, 105-308
Edition 3: 105-275, 105-308