Bill Text: NC S508 | 2013-2014 | Regular Session | Amended
Bill Title: Eliminate Initial Ownership Req. For PUV
Sponsorship: Partisan Bill (Republican 3)
Status: (Introduced - Dead) 2013-03-28 - Ref To Com On Finance [S508 Detail]
Download: North_Carolina-2013-S508-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
S 1
SENATE BILL 508
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Short Title: Eliminate Initial Ownership Req. For PUV. |
(Public) |
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Sponsors: |
Senators Jackson, Brock (Primary Sponsors); and Meredith. |
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Referred to: |
Finance. |
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March 28, 2013
A BILL TO BE ENTITLED
AN ACT to eliminate the requirements for present‑use value property that relate to initial length of ownership.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105‑277.3 reads as rewritten:
"§ 105‑277.3. Agricultural, horticultural, and forestland � Classifications.
(a) Classes Defined. � The following classes of property are designated special classes of property under authority of Section 2(2) of Article V of the North Carolina Constitution and must be appraised, assessed, and taxed as provided in G.S. 105‑277.2 through G.S. 105‑277.7.
(1) Agricultural land. � Individually owned agricultural land consisting of one or more tracts, one of which satisfies the requirements of this subdivision. For agricultural land used as a farm for aquatic species, as defined in G.S. 106‑758, the tract must meet the income requirement for agricultural land and must consist of at least five acres in actual production or produce at least 20,000 pounds of aquatic species for commercial sale annually, regardless of acreage. For all other agricultural land, the tract must meet the income requirement for agricultural land and must consist of at least 10 acres that are in actual production. Land in actual production includes land under improvements used in the commercial production or growing of crops, plants, or animals.
To meet the income requirement, agricultural land must, for the three years preceding January 1 of the year for which the benefit of this section is claimed, have produced an average gross income of at least one thousand dollars ($1,000). Gross income includes income from the sale of the agricultural products produced from the land, any payments received under a governmental soil conservation or land retirement program, and the amount paid to the taxpayer during the taxable year pursuant to P.L. 108‑357, Title VI, Fair and Equitable Tobacco Reform Act of 2004.
(2) Horticultural land. � Individually owned horticultural land consisting of one or more tracts, one of which consists of at least five acres that are in actual production and that, for the three years preceding January 1 of the year for which the benefit of this section is claimed, have met the applicable minimum gross income requirement. Land in actual production includes land under improvements used in the commercial production or growing of fruits or vegetables or nursery or floral products. Land that has been used to produce evergreens intended for use as Christmas trees must have met the minimum gross income requirements established by the Department of Revenue for the land. All other horticultural land must have produced an average gross income of at least one thousand dollars ($1,000). Gross income includes income from the sale of the horticultural products produced from the land and any payments received under a governmental soil conservation or land retirement program.
(3) Forestland. � Individually owned forestland consisting of one or more tracts, one of which consists of at least 20 acres that are in actual production and are not included in a farm unit.
(b) Individual Ownership Requirements. � In
order to come within a classification described in subsection (a) of this
section, land owned by an individual must also satisfy one of the following
conditions:
(1) It is the owner's place of residence.
(2) It has been owned by the current owner or
a relative of the current owner for the four years preceding January 1 of the
year for which the benefit of this section is claimed.
(3) At the time of transfer to the current owner,
it qualified for classification in the hands of a business entity or trust that
transferred the land to the current owner who was a member of the business
entity or a beneficiary of the trust, as appropriate.
(b1) Entity Ownership Requirements. � In order
to come within a classification described in subsection (a) of this section,
land owned by a business entity must meet the requirements of subdivision (1)
of this subsection and land owned by a trust must meet the requirements of
subdivision (2) of this subsection.
(1) Land owned by a business entity must have
been owned by one or more of the following for the four years immediately
preceding January 1 of the year for which the benefit of this section is
claimed:
a. The business entity.
b. A member of the business entity.
c. Another business entity whose members
include a member of the business entity that currently owns the land.
(2) Land owned by a trust must have been
owned by the trust or by one or more of its creators for the four years
immediately preceding January 1 of the year for which the benefit of this
section is claimed.
(b2) Exceptions to Ownership Requirements. �
Notwithstanding the provisions of subsections (b) and (b1) of this section,
land may qualify for classification in the hands of the new owner if all of the
conditions listed in either subdivision of this subsection are met, even if the
new owner does not meet all of the ownership requirements of subsections (b)
and (b1) of this section with respect to the land.
(1) Continued use.Use Exception. �
If the land qualifies for classification in the hands of the new owner under
the provisions of this subdivision, then any deferred taxes remain a lien on
the land under G.S. 105‑277.4(c), the new owner becomes liable for
the deferred taxes, and the deferred taxes become payable if the land fails to
meet any other condition or requirement for classification. Land qualifies for
classification in the hands of the new owner if all of the following conditions
are met:
a.(1) The land was appraised at its present
use value at the time title to the land passed to the new owner.
b.(2) The new owner acquires the land and
continues to use the land for the purpose for which it was classified under
subsection (a) of this section while under previous ownership.
c.(3) The new owner has timely filed an
application as required by G.S. 105‑277.4(a) and has certified that
the new owner accepts liability for any deferred taxes and intends to continue
the present use of the land.
(2) Expansion of existing unit. � Land
qualifies for classification in the hands of the new owner if, at the time
title passed to the new owner, the land was not appraised at its present‑use
value but was being used for the same purpose and was eligible for appraisal at
its present‑use value as other land already owned by the new owner and
classified under subsection (a) of this section. The new owner must timely file
an application as required by G.S. 105‑277.4(a).
�."
SECTION 2. This act is effective for taxes imposed for taxable years beginning on or after July 1, 2013.
