§ 105-273. (Effective for taxes imposed for taxable years beginning before July 1, 2008) Definitions. - North Carolina Statutes

§ 105‑273.  (Effectivefor taxes imposed for taxable years beginning before July 1, 2008) Definitions.

When used in this Subchapter(unless the context requires a different meaning):

(1)        "Abstract"means the document on which the property of a taxpayer is listed for ad valoremtaxation and on which the appraised and assessed values of the property arerecorded.

(2)        "Appraisal"means both the true value of property and the process by which true value isascertained.

(3)        "Assessment"means both the tax value of property and the process by which the assessment isdetermined.

(4)        Repealed by SessionLaws 1973, c. 695, s. 15, effective January 1, 1974.

(4a)      "Code" [is]defined in G.S. 105‑228.90.

(5)        "Collector"or "tax collector" means any person charged with the duty ofcollecting taxes for a county or municipality.

(5a)      "Contractor"means a taxpayer who is regularly engaged in building, installing, repairing,or improving real property.

(6)        "Corporation"includes nonprofit corporation and every type of organization having capitalstock represented by shares.

(6a)      "Discoveredproperty" includes all of the following:

a.         Property that wasnot listed during a listing period.

b.         Property that waslisted but the listing included a substantial understatement.

c.         Property that hasbeen granted an exemption or exclusion and does not qualify for the exemptionor exclusion.

(6b)      "To discoverproperty" means to determine any of the following:

a.         Property has notbeen listed during a listing period.

b.         A taxpayer made asubstantial understatement of listed property.

c.         Property was grantedan exemption or exclusion and the property does not qualify for an exemption orexclusion.

(7)        "Document"includes book, paper, record, statement, account, map, plat, film, picture,tape, object, instrument, and any other thing conveying information.

(7a)      "Failure to listproperty" includes all of the following:

a.         Failure to listproperty during a listing period.

b.         A substantialunderstatement of listed property.

c.         Failure to notifythe assessor that property granted an exemption or exclusion under anapplication for exemption or exclusion does not qualify for the exemption orexclusion.

(8)        "Intangiblepersonal property" means patents, copyrights, secret processes, formulae,good will, trademarks, trade brands, franchises, stocks, bonds, cash, bankdeposits, notes, evidences of debt, leasehold interests in exempted realproperty, bills and accounts receivable, and other like property.

(8a)      "Inventories"means (i) goods held for sale in the regular course of business bymanufacturers, retail and wholesale merchants, and contractors, and (ii) goodsheld by contractors to be furnished in the course of building, installing,repairing, or improving real property. As to manufacturers, the term includesraw materials, goods in process, and finished goods, as well as other materialsor supplies that are consumed in manufacturing or processing, or that accompanyand become a part of the sale of the property being sold. The term alsoincludes a modular home as defined in G.S. 105‑164.3(21b) that is usedexclusively as a display model and held for eventual sale at the retailmerchant's place of business. The term also includes crops, livestock, poultry,feed used in the production of livestock and poultry, and other agricultural orhorticultural products held for sale, whether in process or ready for sale. Theterm does not include fuel used in manufacturing or processing, nor does itinclude materials or supplies not used directly in manufacturing or processing.As to retail and wholesale merchants and contractors, the term includes, inaddition to articles held for sale, packaging materials that accompany andbecome a part of the sale of the property being sold.

(9)        "List" or"listing," when used as a noun, means abstract.

(10)      Repealed by SessionLaws 1987, c. 43, s. 1.

(10a)    "Local taxofficial" includes a county assessor, an assistant county assessor, amember of a county board of commissioners, a member of a county board ofequalization and review, a county tax collector, and the municipal equivalentsof these officials.

(10b)    "Manufacturer"means a taxpayer who is regularly engaged in the mechanical or chemicalconversion or transformation of materials or substances into new products forsale or in the growth, breeding, raising, or other production of new productsfor sale. The term does not include delicatessens, cafes, cafeterias,restaurants, and other similar retailers that are principally engaged in theretail sale of foods prepared by them for consumption on or off their premises.

(11)      "Municipalcorporation" and "municipality" mean city, town, incorporatedvillage, sanitary district, rural fire protection district, rural recreationdistrict, mosquito control district, hospital district, metropolitan seweragedistrict, watershed improvement district, or other district or unit of localgovernment by or for which ad valorem taxes are levied. The terms also includea consolidated city‑county as defined by G.S. 160B‑2(1).

(12)      "Person"and "he" include any individual, trustee, executor, administrator,other fiduciary, corporation, limited liability company, unincorporatedassociation, partnership, sole proprietorship, company, firm, or other legalentity.

(13)      "Realproperty," "real estate," and "land" mean not only theland itself, but also buildings, structures, improvements, and permanentfixtures on the land, and all rights and privileges belonging or in any wayappertaining to the property. These terms also mean a manufactured home asdefined in G.S. 143‑143.9(6) if it is a residential structure; has themoving hitch, wheels, and axles removed; and is placed upon a permanentfoundation either on land owned by the owner of the manufactured home or onland in which the owner of the manufactured home has a leasehold interestpursuant to a lease with a primary term of at least 20 years for the realproperty on which the manufactured home is affixed and where the leaseexpressly provides for disposition of the manufactured home upon termination ofthe lease. A manufactured home as defined in G.S. 143‑143.9(6) that doesnot meet all of these conditions is considered tangible personal property.

(13a)    "RetailMerchant" means a taxpayer who is regularly engaged in the sale oftangible personal property, acquired by a means other than manufacture,processing, or producing by the merchant, to users or consumers.

(13b)    "Substantialunderstatement" means the omission of a material portion of the value,quantity, or other measurement of taxable property. The determination ofmateriality in each case shall be made by the assessor, subject to thetaxpayer's right to review of the determination by the county board ofequalization and review or board of commissioners and appeal to the PropertyTax Commission.

(14)      "Tangiblepersonal property" means all personal property that is not intangible andthat is not permanently affixed to real property.

(15)      "Tax" and"taxes" include the principal amount of any tax, costs, penalties,and interest imposed upon property tax or dog license tax.

(16)      "Taxingunit" means a county or municipality authorized to levy ad valoremproperty taxes.

(17)      "Taxpayer"means any person whose property is subject to ad valorem property taxation byany county or municipality and any person who, under the terms of thisSubchapter, has a duty to list property for taxation. For purposes ofcollecting delinquent ad valorem taxes assessed on real property under G.S. 105‑366through G.S. 105‑375, "taxpayer" means the owner of record onthe date the taxes become delinquent and any subsequent owner of record of thereal property if conveyed after that date.

(18)      "Valuation"means appraisal and assessment.

(19)      "WholesaleMerchant" means a taxpayer who is regularly engaged in the sale oftangible personal property, acquired by a means other than manufacture,processing, or producing by the merchant, to other retail or wholesalemerchants for resale or to manufacturers for use as ingredient or componentparts of articles being manufactured for sale.  (1939, c. 310, s. 2; 1971, c. 806, s. 1; 1973, c.695, ss. 14, 15; 1985, c. 656, s. 20; 1985 (Reg. Sess., 1986), c. 947, ss. 3,4; 1987, c. 43, s. 1; c. 440, s. 2; c. 805, s. 3; c. 813, ss. 1‑4; 1991,c. 34, s. 3; 1991 (Reg. Sess., 1992), c. 975, s. 1; c. 1004, s. 1; 1993, c.354, s. 23; c. 459, s. 1; 1995, c. 461, s. 15; 1998‑212, s. 29A.18(c);2001‑506, s. 1; 2002‑156, s. 4; 2003‑400, s. 4; 2006‑106,ss. 1, 8.)

§ 105‑273.  (Effectivefor taxes imposed for taxable years beginning on or after July 1, 2008)Definitions.

The following definitionsapply in this Subchapter:

(1)        Abstract. – Thedocument on which the property of a taxpayer is listed for ad valorem taxationand on which the appraised and assessed values of the property are recorded.

(2)        Appraisal. – Thetrue value of property or the process by which true value is ascertained.

(3)        Assessment. – Thetax value of property or the process by which the assessment is determined.

(3a)      (Effective fortaxes imposed for taxable years beginning on or after July 1, 2010. See notefor repeal.) "Builder" means a taxpayer licensed as a generalcontractor under G.S. 87‑1 and engaged in the business of buying realproperty, making improvements to it, and then reselling it.

(4)        Repealed by SessionLaws 1973, c. 695, s. 15, effective January 1, 1974.

(4a)      Code. – Defined inG.S. 105‑228.90.

(5)        Collector or taxcollector. – A person charged with the duty of collecting taxes for a county ormunicipality.

(5a)      Constructioncontractor. – A taxpayer who is regularly engaged in building, installing,repairing, or improving real property.

(6)        Corporation. – Anorganization having capital stock represented by shares or an incorporated,nonprofit organization.

(6a)      Discovered property.– Any of the following:

a.         Property that wasnot listed during a listing period.

b.         Property that waslisted but the listing included a substantial understatement.

c.         Property that hasbeen granted an exemption or exclusion and does not qualify for the exemptionor exclusion.

(6b)      Discover property. – Determineany of the following:

a.         Property has notbeen listed during a listing period.

b.         A taxpayer made asubstantial understatement of listed property.

c.         Property was grantedan exemption or exclusion and the property does not qualify for an exemption orexclusion.

(7)        Document. – A book,paper, record, statement, account, map, plat, film, picture, tape, object,instrument, or any other thing conveying information.

(7a)      Failure to listproperty. – Any of the following:

a.         Failure to listproperty during a listing period.

b.         A substantialunderstatement of listed property.

c.         Failure to notifythe assessor that property granted an exemption or exclusion under anapplication for exemption or exclusion does not qualify for the exemption orexclusion.

(8)        Intangible personalproperty. – Patents, copyrights, secret processes, formulae, good will,trademarks, trade brands, franchises, stocks, bonds, cash, bank deposits,notes, evidences of debt, leasehold interests in exempted real property, billsand accounts receivable, or other like property.

(8a)      Inventories. – Any ofthe following:

a.         Goods held for salein the regular course of business by manufacturers, retail and wholesalemerchants, and construction contractors. As to retail and wholesale merchantsand construction contractors, the term includes packaging materials thataccompany and become a part of the goods sold.

b.         Goods held byconstruction contractors to be furnished in the course of building, installing,repairing, or improving real property.

c.         As to manufacturers,raw materials, goods in process, finished goods, or other materials or suppliesthat are consumed in manufacturing or processing or that accompany and become apart of the sale of the property being sold. The term does not include fuelused in manufacturing or processing and materials or supplies not used directlyin manufacturing or processing.

d.         A modular home asdefined in G.S. 105‑164.3(21b) that is used exclusively as a displaymodel and held for eventual sale at the retail merchant's place of business.

e.         Crops, livestock,poultry, feed used in the production of livestock and poultry, or otheragricultural or horticultural products held for sale, whether in process orready for sale.

(9)        List or listing. – Anabstract, when the term is used as a noun.

(10)      Repealed by SessionLaws 1987, c. 43, s. 1.

(10a)    Local tax official. – Acounty assessor, an assistant county assessor, a member of a county board ofcommissioners, a member of a county board of equalization and review, a countytax collector, or the municipal equivalent of one of these officials.

(10b)    Manufacturer. – Ataxpayer who is regularly engaged in the mechanical or chemical conversion ortransformation of materials or substances into new products for sale or in thegrowth, breeding, raising, or other production of new products for sale. Theterm does not include delicatessens, cafes, cafeterias, restaurants, and othersimilar retailers that are principally engaged in the retail sale of foodsprepared by them for consumption on or off their premises.

(11)      Municipal corporationor municipality. – A city, town, incorporated village, sanitary district, ruralfire protection district, rural recreation district, mosquito control district,hospital district, metropolitan sewerage district, watershed improvementdistrict, a consolidated city‑county as defined by G.S. 160B‑2, oranother district or unit of local government by or for which ad valorem taxesare levied.

(12)      Person. – Anindividual, a trustee, an executor, an administrator, another fiduciary, acorporation, a limited liability company, an unincorporated association, apartnership, a sole proprietorship, a company, a firm, or another legal entity.

(13)      Real property, realestate, or land. – Any of the following:

a.         The land itself.

b.         Buildings,structures, improvements, or permanent fixtures on land.

c.         All rights andprivileges belonging or in any way appertaining to the property.

d.         A manufactured homeas defined in G.S. 143‑143.9(6), unless it is considered tangiblepersonal property for failure to meet all of the following requirements:

1.         It is a residentialstructure.

2.         It has the movinghitch, wheels, and axles removed.

3.         It is placed upon apermanent foundation either on land owned by the owner of the manufactured homeor on land in which the owner of the manufactured home has a leasehold interestpursuant to a lease with a primary term of at least 20 years and the leaseexpressly provides for disposition of the manufactured home upon termination ofthe lease.

(13a)    Retail merchant. – Ataxpayer who is regularly engaged in the sale of tangible personal property,acquired by a means other than manufacture, processing, or producing by themerchant, to users or consumers.

(13b)    Substantialunderstatement. – The omission of a material portion of the value, quantity, orother measurement of taxable property. The determination of materiality in eachcase shall be made by the assessor, subject to the taxpayer's right to reviewof the determination by the county board of equalization and review or board ofcommissioners and appeal to the Property Tax Commission.

(14)      Tangible personalproperty. – All personal property that is not intangible and that is notpermanently affixed to real property.

(15)      Tax or taxes. – Theprincipal amount of any property tax or dog license tax and costs, penalties,and interest.

(16)      Taxing unit. – Acounty or municipality authorized to levy ad valorem property taxes.

(17)      Taxpayer. – A personwhose property is subject to ad valorem property taxation by any county ormunicipality and any person who, under the terms of this Subchapter, has a dutyto list property for taxation.

(18)      Valuation. – Appraisaland assessment.

(19)      Wholesale merchant. –A taxpayer who is regularly engaged in the sale of tangible personal property,acquired by a means other than manufacture, processing, or producing by themerchant, to other retail or wholesale merchants for resale or to manufacturersfor use as ingredient or component parts of articles being manufactured for sale.  (1939, c. 310, s. 2; 1971,c. 806, s. 1; 1973, c. 695, ss. 14, 15; 1985, c. 656, s. 20; 1985 (Reg. Sess.,1986), c. 947, ss. 3, 4; 1987, c. 43, s. 1; c. 440, s. 2; c. 805, s. 3; c. 813,ss. 1‑4; 1991, c. 34, s. 3; 1991 (Reg. Sess., 1992), c. 975, s. 1; c.1004, s. 1; 1993, c. 354, s. 23; c. 459, s. 1; 1995, c. 461, s. 15; 1998‑212,s. 29A.18(c); 2001‑506, s. 1; 2002‑156, s. 4; 2003‑400, s. 4;2006‑106, ss. 1, 8; 2008‑35, s. 1.1; 2009‑308, s. 1; 2009‑445,s. 20.)