§ 105-278.6. Real and personal property used for charitable purposes. - North Carolina Statutes

§ 105‑278.6.  Real andpersonal property used for charitable purposes.

(a)        Real and personalproperty owned by:

(1)        A Young Men'sChristian Association or similar organization;

(2)        A home for the aged,sick, or infirm;

(3)        An orphanage orsimilar home;

(4)        A Society for thePrevention of Cruelty to Animals;

(5)        A reformatory orcorrectional institution;

(6)        A monastery,convent, or nunnery;

(7)        A nonprofit, life‑saving,first aid, or rescue squad organization;

(8)        A nonprofitorganization providing housing for individuals or families with low or moderateincomes

shall be exempted from taxationif: (i) As to real property, it is actually and exclusively occupied and used,and as to personal property, it is entirely and completely used, by the ownerfor charitable purposes; and (ii) the owner is not organized or operated forprofit.

(b)        A charitablepurpose within the meaning of this section is one that has humane andphilanthropic objectives; it is an activity that benefits humanity or asignificant rather than limited segment of the community without expectation ofpecuniary profit or reward. The humane treatment of animals is also acharitable purpose.

(c)        The fact that abuilding or facility is incidentally available to and patronized by the generalpublic, so long as there is no material amount of business or patronage withthe general public, shall not defeat the exemption granted by this section.

(d)        Notwithstanding theexclusive‑use requirements of this section, if part of a property thatotherwise meets the section's requirements is used for a purpose that wouldrequire exemption under subsection (a), above, if the entire property were soused, the valuation of the part so used shall be exempted from taxation.

(e)        (Effective fortaxes imposed for taxable years beginning before July 1, 2008) Realproperty held by an organization described in subdivision (a)(8) is held for acharitable purpose under this section if it is held for no more than five yearsas a future site for housing for individuals or families with low or moderateincomes. The taxes that would otherwise be due on real property exempt underthis subsection shall be a lien on the property as provided in G.S. 105‑355(a).The taxes shall be carried forward in the records of the taxing unit as deferredtaxes and shall be payable five years after the tax year the exemption is firstclaimed unless the organization has constructed low‑ or moderate‑incomehousing on the site. If this condition has not been met, the deferred taxes forthe preceding five fiscal years shall be payable immediately, together withinterest as provided in G.S. 105‑360 for unpaid taxes that accrues on thedeferred taxes as if they had been payable on the dates they would haveoriginally become due. All liens arising under this subsection are extinguishedupon one of the following:

(1)        Payment of alldeferred taxes under this subsection.

(2)        Construction by theorganization of low‑ or moderate‑income housing on the site withinfive years after the tax year the exemption is first claimed.

(e)        (Effective fortaxes imposed for taxable years beginning on or after July 1, 2008, and beforeJuly 1, 2010) Real property held by an organization described insubdivision (a)(8) for a charitable purpose under this section as a future sitefor housing for individuals or families with low or moderate incomes may beclassified under this section for no more than five years. The taxes that wouldotherwise be due on real property exempt under this subsection shall be a lienon the property as provided in G.S. 105‑355(a). The taxes shall becarried forward in the records of the taxing unit as deferred taxes. Thedeferred taxes are due and payable in accordance with G.S. 105‑277.1Fwhen the property loses its eligibility for deferral as a result of a disqualifyingevent. A disqualifying event occurs when the organization fails to constructlow‑ or moderate‑income housing on the site within five years fromthe first day of the fiscal year the property was classified under thissubsection.

(e)        (Effective fortaxes imposed for taxable years beginning on or after July 1, 2010) Realproperty held by an organization described in subdivision (a)(8) for acharitable purpose under this section as a future site for housing forindividuals or families with low or moderate incomes may be classified underthis section for no more than five years. The taxes that would otherwise be dueon real property exempt under this subsection shall be a lien on the propertyas provided in G.S. 105‑355(a). The taxes shall be carried forward in therecords of the taxing unit as deferred taxes. The deferred taxes are due andpayable in accordance with G.S. 105‑277.1F when the property loses itseligibility for deferral as a result of a disqualifying event. A disqualifyingevent occurs when the property was not used for low‑ or moderate‑incomehousing within five years from the first day of the fiscal year the propertywas classified under this subsection.  (1973, c. 695, s. 4; 1975, c. 808; 1993, c. 230, s.1; 2008‑35, s. 2.6; 2009‑481, s. 2.)