§ 105-282.1. Applications for property tax exemption or exclusion; annual review of property exempted or excluded from property tax. - North Carolina Statutes

§ 105‑282.1. Applications for property tax exemption or exclusion; annual review of propertyexempted or excluded from property tax.

(a)        Application. – Everyowner of property claiming exemption or exclusion from property taxes under theprovisions of this Subchapter has the burden of establishing that the propertyis entitled to it. If the property for which the exemption or exclusion isclaimed is appraised by the Department of Revenue, the application shall befiled with the Department. Otherwise, the application shall be filed with theassessor of the county in which the property is situated. An application mustcontain a complete and accurate statement of the facts that entitle theproperty to the exemption or exclusion and must indicate the municipality, ifany, in which the property is located. Each application filed with theDepartment of Revenue or an assessor shall be submitted on a form approved bythe Department. Application forms shall be made available by the assessor andthe Department, as appropriate.

Except as provided below, anowner claiming an exemption or exclusion from property taxes must file anapplication for the exemption or exclusion annually during the listing period.

(1)        No applicationrequired. – Owners of the following exempt or excluded property do not need tofile an application for the exemption or exclusion to be entitled to receiveit:

a.         Property exempt fromtaxation under G.S. 105‑278.1 or G.S. 105‑278.2.

b.         Special classes ofproperty excluded from taxation under G.S. 105‑275(15), (16), (26), (31),(32a), (33), (34), (37), (40), (42), or (44).

c.         Property classifiedfor taxation at a reduced valuation under G.S. 105‑277(g) or G.S. 105‑277.9.

(2)        (Effective fortaxes imposed for taxable years beginning before July 1, 2009) Singleapplication required. – An owner of one or more of the following propertieseligible to be exempted or excluded from taxation must file an application forexemption or exclusion to receive it. Once the application has been approved,the owner does not need to file an application in subsequent years unless newor additional property is acquired or improvements are added or removed,necessitating a change in the valuation of the property, or there is a changein the use of the property or the qualifications or eligibility of the taxpayernecessitating a review of the exemption or exclusion:

a.         Property exemptedfrom taxation under G.S. 105‑278.3, 105‑278.4, 105‑278.5, 105‑278.6, 105‑278.7, or 105‑278.8.

b.         Special classes ofproperty excluded from taxation under G.S. 105‑275(3), (7), (8), (12),(17), (18), (19), (20), (21), (31e), (35), (36), (38), (39), (41), or (45) orunder G.S. 131A‑21.

c.         Special classes ofproperty classified for taxation at a reduced valuation under G.S. 105‑277(h),105‑277.1, 105‑277.10, 105‑277.13, or 105‑278.

d.         Property owned by anonprofit homeowners' association but where the value of the property isincluded in the appraisals of property owned by members of the associationunder G.S. 105‑277.8.

(2)        (Effective fortaxes imposed for taxable years beginning on or after July 1, 2009 and beforeJuly 1, 2010) Single application required. – An owner of one or more of thefollowing properties eligible for a property tax benefit must file anapplication for the benefit to receive it. Once the application has beenapproved, the owner does not need to file an application in subsequent yearsunless new or additional property is acquired or improvements are added orremoved, necessitating a change in the valuation of the property, or there is achange in the use of the property or the qualifications or eligibility of thetaxpayer necessitating a review of the benefit.

a.         Property exemptedfrom taxation under G.S. 105‑278.3, 105‑278.4, 105‑278.5, 105‑278.6,105‑278.7, or 105‑278.8.

b.         Special classes ofproperty excluded from taxation under G.S. 105‑275(3), (7), (8), (12),(17), (18), (19), (20), (21), (31e), (35), (36), (38), (39), (41), or (45) orunder G.S. 131A‑21.

c.         Special classes ofproperty classified for taxation at a reduced valuation under G.S. 105‑277(h),105‑277.1, 105‑277.1C, 105‑277.10, 105‑277.13, 105‑277.14,or 105‑278.

d.         Property owned by anonprofit homeowners' association but where the value of the property isincluded in the appraisals of property owned by members of the associationunder G.S. 105‑277.8.

e.         Repealed by SessionLaws 2008‑35, s. 1.2, effective for taxes imposed for taxable yearsbeginning on or after July 1, 2008.

(2)        (Effective fortaxes imposed for taxable years beginning on or after July 1, 2010) Singleapplication required. – An owner of one or more of the following propertieseligible for a property tax benefit must file an application for the benefit toreceive it. Once the application has been approved, the owner does not need tofile an application in subsequent years unless new or additional property isacquired or improvements are added or removed, necessitating a change in thevaluation of the property, or there is a change in the use of the property orthe qualifications or eligibility of the taxpayer necessitating a review of thebenefit.

a.         Property exemptedfrom taxation under G.S. 105‑278.3, 105‑278.4, 105‑278.5, 105‑278.6,105‑278.7, or 105‑278.8.

b.         Special classes ofproperty excluded from taxation under G.S. 105‑275(3), (7), (8), (12),(17), (18), (19), (20), (21), (31e), (35), (36), (38), (39), (41), or (45) orunder G.S. 131A‑21.

c.         Special classes ofproperty classified for taxation at a reduced valuation under G.S. 105‑277(h),105‑277.1, 105‑277.1C, 105‑277.10, 105‑277.13, 105‑277.14,105‑277.15, 105‑277.17, or 105‑278.

d.         Property owned by anonprofit homeowners' association but where the value of the property isincluded in the appraisals of property owned by members of the associationunder G.S. 105‑277.8.

e.         Repealed by SessionLaws 2008‑35, s. 1.2, effective for taxes imposed for taxable yearsbeginning on or after July 1, 2008.

(a1)      Late Application. – Upona showing of good cause by the applicant for failure to make a timelyapplication, an application for exemption or exclusion filed after the close ofthe listing period may be approved by the Department of Revenue, the board ofequalization and review, the board of county commissioners, or the governingbody of a municipality, as appropriate. An untimely application for exemption orexclusion approved under this subsection applies only to property taxes leviedby the county or municipality in the calendar year in which the untimelyapplication is filed.

(b)        Approval and AppealProcess. –  The Department of Revenue or the assessor to whom an applicationfor exemption or exclusion is submitted must review the application and eitherapprove or deny the application. Approved applications shall be filed and madeavailable to all taxing units in which the exempted or excluded property is situated.If the Department denies an application for exemption or exclusion, it shallnotify the taxpayer, who may appeal the denial to the Property Tax Commission.

If an assessor denies anapplication for exemption or exclusion, the assessor must notify the owner ofthe decision and the owner may appeal the decision to the board of equalizationand review or the board of county commissioners, as appropriate, and from thecounty board to the Property Tax Commission. If the notice of denial coversproperty located within a municipality, the assessor shall send a copy of thenotice and a copy of the application to the governing body of the municipality.The municipal governing body shall then advise the owner whether it will adoptthe decision of the county board or require the owner to file a separate appealwith the municipal governing body. In the event the owner is required to appealto the municipal governing body and that body renders an adverse decision, theowner may appeal to the Property Tax Commission. Nothing in this subsectionshall prevent the governing body of a municipality from denying an applicationwhich has been approved by the assessor or by the county board provided theowner's rights to notice and hearing are not abridged. Applications handledseparately by a municipality shall be filed in the office of the persondesignated by the governing body, or in the absence of such designation, in theoffice of the chief fiscal officer of the municipality.

(c)        Discovery ofProperty. – When an owner of property that may be eligible for exemption orexclusion neither lists the property nor files an application for exemption orexclusion, the assessor or the Department of Revenue, as appropriate, shallproceed to discover the property. If, upon appeal, the owner demonstrates thatthe property meets the conditions for exemption or exclusion, the body hearingthe appeal may approve the exemption or exclusion. Discovery of the property bythe Department or the county shall automatically constitute a discovery by anytaxing unit in which the property has a taxable situs.

(d)        Roster of Exemptedand Excluded Property. – The assessor shall prepare and maintain a roster ofall property in the county that is granted tax relief through classification orexemption. On or before November 1 of each year, the assessor must send areport to the Department of Revenue summarizing the information contained inthe roster. The report must be in the format required by the Department. Theassessor must also send the Department a copy of the roster upon the request ofthe Department. As to affected real and personal property, the roster shall setforth:

(1)        The name of theowner of the property.

(2)        A brief descriptionof the property.

(3)        A statement of theuse to which the property is put.

(4)        A statement of thevalue of the property.

(5)        The total value ofexempt property in the county and in each municipality therein.

(e)        Annual Review ofExempted or Excluded Property. – Pursuant to G.S. 105‑296(l), theassessor must annually review at least one‑eighth of the parcels in thecounty exempted or excluded from taxation to verify that the parcels qualifyfor the exemption or exclusion.  (1973, c. 695, s. 8; c. 1252; 1981, c. 54, ss. 2, 3;c. 86, s. 2; c. 915; 1985 (Reg. Sess., 1986), c. 982, s. 22; 1987, c. 45, s. 1;c. 295, ss. 5, 6; c. 680, ss. 1‑3; c. 813, s. 13; 1989, c. 674, s. 2; c.723, s. 2; 1991, c. 34, s. 1; 1991 (Reg. Sess., 1992), c. 975, s. 3; 1993, c.459, s. 3; 1995, c. 41, s. 7; 1995 (Reg. Sess., 1996), c. 646, s. 16; 1997‑23,s. 4; 2000‑140, s. 72(b); 2001‑139, s. 1; 2007‑484, s.43.7T(b); 2007‑497, s. 2.4; 2008‑35, s. 1.3; 2008‑107, s.28.11(g); 2008‑171, ss. 3, 7(c); 2009‑445, s. 23(a), (c)‑(e);2009‑481, s. 3.)