North CarolinaCities must allow qualifying home-based businesses
Once effective, cities must let qualifying home businesses operate without bans or city approvals, while narrow safety rules and private property restrictions still apply.
What it does
Qualifying home businesses may operate without a city ban or approval requirement. They still must meet limits on activity, traffic, visibility, and residential use, and private property rules may prohibit them.
Cities may keep narrow health, safety, and residential-use rules, but cannot demand commercial rezoning or residential fire sprinklers as a condition of operating.
Argument forHomeowners who meet the limits could run small businesses without waiting for city permits, rezoning, or other local approvals.
Argument againstCities may have fewer tools to respond to neighborhood concerns because they generally cannot ban qualifying businesses or require prior approval.
More detail
Cities must allow no-impact home-based businesses without requiring a permit, license, registration, variance, or other city approval. A no-impact home-based business is run from a home by its owner or occupant, stays within the residential occupancy limit, uses lawful goods or services, and operates inside the home or its yard without visible outdoor storage. The business must not create on-street parking or a substantial increase in neighborhood traffic. The business must remain secondary to residential use, compatible with nearby homes, and compliant with state and federal law, including applicable taxes. The rule does not apply when a deed, land-use agreement, or homeowners association documents prohibit the business. The rule is effective when the act becomes law; the act was approved on July 7, 2026.
Cities may impose only narrowly focused rules for public health and safety, residential compatibility, legal compliance, or excluding specified illegal or adult-oriented activities. The rules apply to no-impact home-based businesses within city limits. A city may not require the owner to seek commercial rezoning or install fire sprinklers in a building covered by the North Carolina Residential Code as a condition of operating. Cities may limit businesses involving illegal drugs, liquor, structured sober living homes, pornography, obscenity, nude or topless dancing, or other adult-oriented businesses. These rules are effective when the act becomes law; the act was approved on July 7, 2026.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jul 8Ch. SL 2026-51Latest
- Jul 7Signed by Gov. 7/7/2026Became Law
- Jul 2Pres. To Gov. 7/2/2026To Governor
- Jul 1Ratified
- Jun 30Concurred In S Com SubMajor
- Vote recorded M11 Concur. Result: pass.Lower
- Jun 30Ordered Enrolled
- Jun 29Cal Pursuant 36(b)
- Jun 29Placed On Cal For 06/30/2026
- Jun 25Regular Message Sent To House
- Jun 25Regular Message Received For Concurrence in S Com Sub
- Jun 24Passed 2nd ReadingMinor
- Vote recorded Second Reading. Result: pass.Upper
- Jun 24Passed 3rd ReadingPassed Senate
- Jun 23Reptd FavMinor
- Jun 17Reptd Fav Com SubstituteMinor
- Jun 17Com Substitute Adopted
- Jun 17Re-ref Com On Rules and Operations of the SenateMinor
- 2025
- Jun 11Reptd Fav Com SubstituteMinor
- Jun 11Com Substitute Adopted
- Jun 11Re-ref Com On JudiciaryMinor
- Jun 9Withdrawn From Com
- Jun 9Re-ref to State and Local Government. If fav, re-ref to Judiciary. If fav, re-ref to Rules and Operations of the SenateMinor
- Apr 30Regular Message Sent To Senate
- Apr 30Regular Message Received From House
- Apr 30Passed 1st ReadingMinor
- Apr 30Ref To Com On Rules and Operations of the SenateMinor
- Apr 29Passed 2nd ReadingMinor
- Vote recorded Second Reading. Result: pass.Lower
- Apr 29Passed 3rd ReadingPassed House
- Apr 28Reptd FavMinor
- Apr 28Cal Pursuant Rule 36(b)
- Apr 28Placed On Cal For 04/29/2025
- Apr 15Reptd Fav Com Sub 2Minor
- Apr 15Re-ref Com On Rules, Calendar, and Operations of the HouseMinor
- Apr 1Reptd Fav Com SubstituteMinor
- Apr 1Re-ref Com On State and Local GovernmentMinor
- Mar 12Passed 1st ReadingMinor
- Mar 12Ref to the Com on Commerce and Economic Development, if favorable, State and Local Government, if favorable, Rules, Calendar, and Operations of the HouseMinor
- Mar 11FiledIntroduced
Economy & JobsHousingGovernment & Ethics