§ 159-108. Agreements with property owners. - North Carolina Statutes

§ 159‑108.  Agreementswith property owners.

(a)        Authorization. – Aunit of local government that issues project development financing debtinstruments may enter into agreements with the owners of real property in thedevelopment financing district for which the instruments were issued underwhich the owners agree to a minimum value at which their property will beassessed for taxation. Such an agreement may extend for the life of thedevelopment financing district or for a shorter period agreed to by the parties.The agreement may vary the agreed‑upon minimum assessed value from yearto year.

(b)        Filing andRecording Agreement. – The unit shall file a copy of any agreement entered intopursuant to this section with the tax assessor for the county in which thedevelopment financing district is located. In addition, the unit shall causethe agreement to be recorded in the office of the register of deeds of thatcounty, and the register of deeds shall index the agreement in the grantor'sindex under the name of the property owner. Once the agreement has beenrecorded in the office of the register of deeds, as required by thissubsection, it is binding, according to its terms and for its duration, on anysubsequent owner of the property.

(c)        Minimum Assessmentof Property. – An agreement entered into pursuant to this section establishes aminimum assessment of the real property subject to the agreement. If the countytax assessor determines that the real property has a true value less than theminimum established by the agreement, the assessor shall nevertheless assessthe property at the minimum set out in the agreement. If the assessor, however,determines that the real property has a true value greater than the minimumestablished by the agreement, the assessor shall assess the property at thetrue value.

(d)        Effect ofReappraisal. – If an agreement entered into pursuant to this section continuesin effect after a reappraisal of property conducted pursuant to G.S. 105‑286,the minimum assessment established in the agreement shall be adjusted asprovided in this subsection. After the issuing unit of local government hasadopted its budget ordinance and levied taxes for the fiscal year that beginsnext after the effective date of the reappraisal, it shall certify to thecounty tax assessor the total rate of ad valorem taxes levied by the unit andapplicable to the property subject to the agreement. It shall also certify tothe assessor the total rate of ad valorem taxes levied by the unit andapplicable to the property in the immediately preceding fiscal year. Theassessor shall determine the total amount of ad valorem taxes levied by theunit on the property in the immediately preceding fiscal year, based on the taxrate certified by the issuing unit. The assessor shall then determine a valueof the property that would provide the same total amount of ad valorem taxesbased on the tax rate certified for the fiscal year beginning next after theeffective date of the reappraisal. The value so determined is the new minimumassessment for the property subject to the agreement.

(e)        Agreement EffectiveRegardless of Improvements. – An agreement entered into pursuant to thissection remains in effect according to its terms regardless of whether theimprovements anticipated in the development financing plan are completed orwhether those improvements continue to exist during the duration of theagreement. However, if any part of the property subject to the agreement isacquired by a public agency, the agreement is automatically modified byremoving the acquired property from the agreement and reducing the minimumassessment accordingly. (2003‑403, s. 2.)