§ 131A-21. Tax exemption. - North Carolina Statutes

§ 131A‑21.  Taxexemption.

The exercise of the powersgranted by this Chapter will be in all respects for the benefit of the peopleof the State and will promote their health and welfare. If bonds or notes areissued by the Commission to provide or improve a health care facility, thenuntil the bonds or notes are retired, the facility for which bonds or notes areissued is exempt from property taxes to the extent provided in this section. Ifrefunding bonds or notes are issued to refund bonds or notes issued to provideor improve a health care facility, the facility will continue to be exempt fromproperty taxes as provided in this section until such time as the refundingbonds or notes are retired, provided that the final maturity of the refundingbonds or notes does not extend beyond the final maturity of the original bondsor notes.

Property may be exempt fromproperty taxes as provided in this section if a timely application for theexemption is filed with the assessor of the county in which the property islocated as required under G.S. 105‑282.1. The property tax exemptionunder this section shall not exceed the lesser of the original principal amountof the bonds or notes or the assessed value for ad valorem tax purposes of thefacility. If bonds or notes are issued to finance more than one health carefacility, only that portion of the principal amount of the bonds or notes usedto provide or improve the particular facility, including any allocable reservesand financing costs, may be considered for the purpose of determining theamount of the exemption allowable under this section. The exemption authorizedby this section shall begin with the first full tax year of the taxpayerfollowing the issuance of the bonds and notes. This section does not affect ahealth care facility's eligibility for a property tax exemption underSubchapter II of Chapter 105 of the General Statutes.

Any bonds or notes issued bythe Commission under the provisions of this Chapter shall at all times be freefrom taxation by the State or any local unit or political subdivision or otherinstrumentality of the State, excepting inheritance, estate, or gift taxes,income taxes on the gain from the transfer of the bonds and notes, andfranchise taxes. The interest on the bonds and notes is not subject to taxationas income. (1975,c. 766, s. 1; 1995, c. 46, s. 12; 2000‑20, s. 1; 2001‑139, s. 10.)