§ 105-277.4. Agricultural, horticultural and forestland - Application; appraisal at use value; appeal; deferred taxes. - North Carolina Statutes

§ 105‑277.4. Agricultural, horticultural and forestland – Application; appraisal at usevalue; appeal; deferred taxes.

(a)        Application. – Propertycoming within one of the classes defined in G.S. 105‑277.3 is eligiblefor taxation on the basis of the value of the property in its present use if atimely and proper application is filed with the assessor of the county in whichthe property is located. The application must clearly show that the propertycomes within one of the classes and must also contain any other relevantinformation required by the assessor to properly appraise the property at itspresent‑use value. An initial application must be filed during theregular listing period of the year for which the benefit of this classificationis first claimed, or within 30 days of the date shown on a notice of a changein valuation made pursuant to G.S. 105‑286 or G.S. 105‑287. A newapplication is not required to be submitted unless the property is transferredor becomes ineligible for use‑value appraisal because of a change in useor acreage. An application required due to transfer of the land may besubmitted at any time during the calendar year but must be submitted within 60days of the date of the property's transfer.

(a1)      Late Application. – Upona showing of good cause by the applicant for failure to make a timelyapplication as required by subsection (a) of this section, an application maybe approved by the board of equalization and review or, if that board is not insession, by the board of county commissioners. An untimely application approvedunder this subsection applies only to property taxes levied by the county ormunicipality in the calendar year in which the untimely application is filed.Decisions of the county board may be appealed to the Property Tax Commission.

(b)        Appraisal atPresent‑use Value. – Upon receipt of a properly executed application, theassessor must appraise the property at its present‑use value asestablished in the schedule prepared pursuant to G.S. 105‑317. Inappraising the property at its present‑use value, the assessor mustappraise the improvements located on qualifying land according to the schedulesand standards used in appraising other similar improvements in the county. Ifall or any part of a qualifying tract of land is located within the limits ofan incorporated city or town, or is property annexed subject to G.S. 160A‑37(f1)or G.S. 160A‑49(f1), the assessor must furnish a copy of the propertyrecord showing both the present‑use appraisal and the valuation upon whichthe property would have been taxed in the absence of this classification to thecollector of the city or town. The assessor must also notify the tax collectorof any changes in the appraisals or in the eligibility of the property for thebenefit of this classification. Upon a request for a certification pursuant toG.S. 160A‑37(f1) or G.S.160A‑49(f1), or any change in thecertification, the assessor for the county where the land subject to theannexation is located must, within 30 days, determine if the land meets therequirements of G.S. 160A‑37(f1)(2) or G.S. 160A‑49(f1)(2) andreport the results of its findings to the city.

(b1)      Appeal. – Decisionsof the assessor regarding the qualification or appraisal of property under thissection may be appealed to the county board of equalization and review or, ifthat board is not in session, to the board of county commissioners. An appealmust be made within 60 days after the decision of the assessor. If an ownersubmits additional information to the assessor pursuant to G.S. 105‑296(j),the appeal must be made within 60 days after the assessor's decision based onthe additional information. Decisions of the county board may be appealed tothe Property Tax Commission.

(c)        (Effective fortaxes imposed for taxable years beginning before July 1, 2008) DeferredTaxes. – Land meeting the conditions for classification under G.S. 105‑277.3must be taxed on the basis of the value of the land for its present use. Thedifference between the taxes due on the present‑use basis and the taxesthat would have been payable in the absence of this classification, togetherwith any interest, penalties, or costs that may accrue thereon, are a lien onthe real property of the taxpayer as provided in G.S. 105‑355(a). Thedifference in taxes must be carried forward in the records of the taxing unitor units as deferred taxes. The taxes become due and payable when the landfails to meet any condition or requirement for classification. Failure to havean application approved is ground for disqualification. The tax for the fiscalyear that opens in the calendar year in which deferred taxes become due iscomputed as if the land had not been classified for that year, and taxes forthe preceding three fiscal years that have been deferred are immediatelypayable, together with interest as provided in G.S. 105‑360 for unpaidtaxes. Interest accrues on the deferred taxes due as if they had been payableon the dates on which they originally became due. If only a part of thequalifying tract of land fails to meet a condition or requirement forclassification, the assessor must determine the amount of deferred taxesapplicable to that part and that amount becomes payable with interest asprovided above. Upon the payment of any taxes deferred in accordance with thissection for the three years immediately preceding a disqualification, all liensarising under this subsection are extinguished. The deferred taxes for anygiven year may be paid in that year without the qualifying tract of landbecoming ineligible for deferred status.

(c)        (Effective fortaxes imposed for taxable years beginning on or after July 1, 2008)Deferred Taxes. – Land meeting the conditions for classification under G.S. 105‑277.3must be taxed on the basis of the value of the land for its present use. Thedifference between the taxes due on the present‑use basis and the taxesthat would have been payable in the absence of this classification, togetherwith any interest, penalties, or costs that may accrue thereon, are a lien onthe real property of the taxpayer as provided in G.S. 105‑355(a). Thedifference in taxes must be carried forward in the records of the taxing unitor units as deferred taxes. The deferred taxes for the preceding three fiscalyears are due and payable in accordance with G.S. 105‑277.1F when theproperty loses its eligibility for deferral as a result of a disqualifyingevent. A disqualifying event occurs when the land fails to meet any conditionor requirement for classification or when an application is not approved.

(d)        Exceptions. – Notwithstandingthe provisions of subsection (c) of this section, if property loses itseligibility for present use value classification solely due to one of thefollowing reasons, no deferred taxes are due and the lien for the deferredtaxes is extinguished:

(1)        There is a change inincome caused by enrollment of the property in the federal conservation reserveprogram established under 16 U.S.C. Chapter 58.

(2)        The property isconveyed by gift to a nonprofit organization and qualifies for exclusion fromthe tax base pursuant to G.S. 105‑275(12) or G.S. 105‑275(29).

(3)        The property isconveyed by gift to the State, a political subdivision of the State, or theUnited States.

(e)        Repealed by SessionLaws 1997‑270, s. 3, effective July 3, 1997.  (1973, c. 709, s. 1; c. 905;c. 906, ss. 1, 2; 1975, c. 62; c. 746, ss. 3‑7; 1981, c. 835; 1985, c.518, s. 1; c. 667, ss. 5, 6; 1987, c. 45, s. 1; c. 295, s. 5; c. 698, s. 6;1987 (Reg. Sess., 1988), c. 1044, s. 13.2; 1995, c. 443, s. 4; c. 454, s. 3;1997‑270, s. 3; 1998‑98, s. 23; 1998‑150, s. 1; 2001‑499,s. 2; 2002‑184, s. 3; 2005‑313, s. 4; 2006‑30, s. 4; 2008‑35,s. 2.3.)