§ 105-312. Discovered property; appraisal; penalty. - North Carolina Statutes

§105‑312.  Discovered property; appraisal; penalty.

(a)        Repealed by SessionLaws 1991, c. 34, s. 4.

(b)        Duty to Discoverand Assess Unlisted Property. – It shall be the duty of the assessor to seethat all property not properly listed during the regular listing period belisted, assessed and taxed as provided in this Subchapter. The assessor shallfile reports of such discoveries with the board of commissioners in such manneras the board may require.

(c)        Carrying ForwardReal Property. – At the close of the regular listing period each year, theassessor shall compare the tax lists submitted during the listing period justended with the lists for the preceding year, and he shall carry forward to thelists of the current year all real property that was listed in the precedingyear but that was not listed for the current year. When carried forward, thereal property shall be listed in the name of the taxpayer who listed it in thepreceding year unless, under the provisions of G.S. 105‑302, it must belisted in the name of another taxpayer. Real property carried forward in thismanner shall be deemed to be discovered property, and the procedures prescribedin subsection (d), below, shall be followed unless the property discovered islisted in the name of the taxpayer who listed it for the preceding year and theproperty is not subject to appraisal under either G.S. 105‑286 or G.S.105‑287 in which case no notice of the listing and valuation need be sentto the taxpayer.

(d)        Procedure forListing, Appraising, and Assessing Discovered Property. – Subject to theprovisions of subsection (c), above, and the presumptions established bysubsection (f), below, discovered property shall be listed by the assessor inthe name of the person required by G.S. 105‑302 or G.S. 105‑306.The discovery shall be deemed to be made on the date that the abstract is madeor corrected pursuant to subsection (e) of this section. The assessor shallalso make a tentative appraisal of the discovered property in accordance withthe best information available to him.

When a discovery is made, theassessor shall mail a notice to the person in whose name the discoveredproperty has been listed. The notice shall contain the following information:

(1)        The name and addressof the person in whose name the property is listed;

(2)        A brief descriptionof the property;

(3)        A tentativeappraisal of the property;

(4)        A statement to theeffect that the listing and appraisal will become final unless writtenexception thereto is filed with the assessor within 30 days from date of thenotice.

Upon receipt of a timelyexception to the notice of discovery, the assessor shall arrange a conferencewith the taxpayer to afford him the opportunity to present any evidence orargument he may have regarding the discovery. Within 15 days after theconference, the assessor shall give written notice to the taxpayer of his finaldecision. Written notice shall not be required, however, if the taxpayer signsan agreement accepting the listing and appraisal. In cases in which agreementis not reached, the taxpayer shall have 15 days from the date of the notice torequest review of the decision of the assessor by the board of equalization andreview or, if that board is not in session, by the board of commissioners.Unless the request for review by the county board is given at the conference,it shall be made in writing to the assessor. Upon receipt of a timely requestfor review, the provisions of G.S. 105‑322 or G.S. 105‑325, asappropriate, shall be followed.

(e)        Record of DiscoveredProperty. – When property is discovered, the taxpayer's original abstract (ifone was submitted) may be corrected or a new abstract may be prepared toreflect the discovery. If a new abstract is prepared, it may be filed with theabstracts that were submitted during the regular listing period, or it may befiled separately with abstracts designated "Late Listings."Regardless of how filed, the listing shall have the same force and effect as ifit had been submitted during the regular listing period.

(f)         Presumptions. –When property is discovered and listed to a taxpayer in any year, it shall bepresumed that it should have been listed by the same taxpayer for the precedingfive years unless the taxpayer shall produce satisfactory evidence that theproperty was not in existence, that it was actually listed for taxation, orthat it was not his duty to list the property during those years or some ofthem under the provisions of G.S. 105‑302 and G.S. 105‑306. If itis shown that the property should have been listed by some other taxpayerduring some or all of the preceding years, the property shall be listed in thename of the appropriate taxpayer for the proper years, but the discovery shallstill be deemed to have been made as of the date that the assessor first listedit.

(g)        Taxation ofDiscovered Property. – When property is discovered, it shall be taxed for theyear in which discovered and for any of the preceding five years during whichit escaped taxation in accordance with the assessed value it should have beenassigned in each of the years for which it is to be taxed and the rate of taximposed in each such year. The penalties prescribed by subsection (h) of thissection shall be computed and imposed regardless of the name in which thediscovered property is listed. If the discovery is based upon an understatementof value, quantity, or other measurement rather than an omission from the taxlist, the tax shall be computed on the additional valuation fixed upon theproperty, and the penalties prescribed by subsection (h) of this section shallbe computed on the basis of the additional tax.

(h)        Computation ofPenalties. – Having computed each year's taxes separately as provided insubsection (g), above, there shall be added a penalty of ten percent (10%) ofthe amount of the tax for the earliest year in which the property was notlisted, plus an additional ten percent (10%) of the same amount for eachsubsequent listing period that elapsed before the property was discovered. Thispenalty shall be computed separately for each year in which a failure to listoccurred; and the year, the amount of the tax for that year, and the total ofpenalties for failure to list in that year shall be shown separately on the taxrecords; but the taxes and penalties for all years in which there was a failureto list shall be then totalled on a single tax receipt.

(h1)      Repealed by SessionLaws 1991, c. 624, s. 8.

(i)         Collection. – Forpurposes of tax collection and foreclosure, the total figure obtained andrecorded as provided in subsection (h) of this section shall be deemed to be atax for the fiscal year beginning on July 1 of the calendar year in which theproperty was discovered. The schedule of discounts for prepayment and interestfor late payment applicable to taxes for the fiscal year referred to in thepreceding sentence shall apply when the total figure on the single tax receiptis paid. Notwithstanding the time limitations contained in G.S. 105‑381,any property owner who is required to pay taxes on discovered property asherein provided shall be entitled to a refund of any taxes erroneously paid onthe same property to other taxing jurisdictions in North Carolina. Claim forrefund shall be filed in the county where such tax was erroneously paid asprovided by G.S. 105‑381.

(j)         Tax ReceiptsCharged to Collector. – Tax receipts prepared as required by subsections (h)and (i) of this section for the taxes and penalties imposed upon discoveredproperty shall be delivered to the tax collector, and he shall be charged with theircollection. Such receipts shall have the same force and effect as if they hadbeen delivered to the collector at the time of the delivery of the regular taxreceipts for the current year, and the taxes charged in the receipts shall be alien upon the property in accordance with the provisions of G.S. 105‑355.

(k)        Power toCompromise. – After a tax receipt computed and prepared as required bysubsections (g) and (h) of this section has been delivered and charged to thetax collector as prescribed in subsection (j), above, the board of countycommissioners, upon the petition of the taxpayer, may compromise, settle, oradjust the county's claim for taxes arising therefrom. The board ofcommissioners may, by resolution, delegate the authority granted by thissubsection to the board of equalization and review, including any board createdby resolution pursuant to G.S. 105‑322(a) and any special boardestablished by local act.

(l)         MunicipalCorporations. – The provisions of this section shall apply to all cities,towns, and other municipal corporations having the power to tax property. Suchgovernmental units shall designate an appropriate municipal officer to exercisethe powers and duties assigned by this section to the assessor, and the powersand duties assigned to the board of county commissioners shall be exercised bythe governing body of the unit. When the assessor discovers property having ataxable situs in a municipal corporation, he shall send a copy of the notice ofdiscovery required by subsection (d) to the governing body of the municipalitytogether with such other information as may be necessary to enable themunicipality to proceed. The governing board of a municipality may, byresolution, delegate the power to compromise, settle, or adjust tax claimsgranted by this subsection and by subsection (k) of this section to the countyboard of equalization and review, including any board created by resolutionpursuant to G.S. 105‑322(a) and any special board established by localact. (1939, c. 310, s. 1109; 1971, c. 806, s. 1; 1973, c.476, s. 193; c. 787; 1977, c. 864; 1981, c. 623, ss. 1, 2; 1987, c. 45, s. 1;c. 743, ss. 1, 2; 1989, c. 522; 1991, c. 34, s. 4; c. 624, s. 8; 1991 (Reg.Sess., 1992), c. 961, s. 12; 1999‑297, s. 2.)