North CarolinaNorth Carolina law gives builders a tax exclusion in approved districts
For tax years beginning on or after July 1, 2027, builders may apply to exclude 90% of qualifying property value in locally approved districts.
What it does
Builders may apply to exclude 90% of the appraised value of qualifying new development held for sale in an approved district. The district must follow local approval rules.
Argument forBuilders could pay less property tax on qualifying new development held for sale, which may make building in approved districts more attractive.
Argument againstLocal governments could collect less property tax from qualifying property while the exclusion applies, for up to ten years or until the property is sold.
More detail
The law excludes 90% of qualifying property’s appraised value from property taxes. The property must be held for sale by a builder in a locally approved district. Districts may cover no more than 5% of a local government’s area; a county needs a municipality’s approval to include land inside it. The builder must apply for the exclusion. Qualifying development includes land and unoccupied new improvements, but not remodeling or other work on existing buildings. Property receiving this exclusion cannot also receive the relief described in G.S. 105-277.02. The law applies to taxes imposed for tax years beginning on or after July 1, 2027. The exclusion ends ten years after the property first receives it or when it is sold, whichever comes first.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Jun 22Signed by Gov. 6/22/2026Became Law
- Jun 22Ch. SL 2026-12Major
- Jun 18Pres. To Gov. 6/18/2026To Governor
- Jun 17Ratified
- Jun 16Concurred In H Com SubMajor
- Vote recorded Motion 9 To Concur. Result: pass.Upper
- Jun 16Ordered Enrolled
- Jun 15Withdrawn From Com
- Jun 15Placed On Cal For 06/16/2026
- Jun 11Regular Message Sent To Senate
- Jun 11Regular Message Received For Concurrence in H Com Sub
- Jun 11Ref To Com On Rules and Operations of the SenateMinor
- Jun 10Amend Adopted A1Major
- Vote recorded Second Reading. Result: pass.Lower
- Jun 10Passed 2nd ReadingMinor
- Jun 10Passed 3rd ReadingPassed House
- Jun 10Ordered Engrossed
- Jun 9Reptd Fav Com SubstituteMinor
- Jun 9Re-ref Com On Rules, Calendar, and Operations of the HouseMinor
- Jun 9Reptd FavMinor
- Jun 9Cal Pursuant Rule 36(b)
- Jun 9Placed On Cal For 06/10/2026
- 2025
- Jun 25Reptd FavMinor
- Jun 25Re-ref Com On FinanceMinor
- Jun 24Withdrawn From Com
- Jun 24Re-ref to the Com on State and Local Government, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the HouseMinor
- Jun 19Passed 2nd ReadingMinor
- Jun 19Passed 3rd ReadingPassed Senate
- Jun 19Special Message Sent To House
- Jun 19Special Message Received From Senate
- Jun 19Passed 1st ReadingMinor
- Jun 19Ref To Com On Rules, Calendar, and Operations of the HouseMinor
- Jun 18Reptd FavMinor
- Jun 17Reptd FavMinor
- Jun 17Re-ref Com On Rules and Operations of the SenateMinor
- May 22Reptd Fav Com SubstituteMinor
- May 22Com Substitute Adopted
- May 22Re-ref Com On FinanceMinor
- Apr 28Withdrawn From Com
- Apr 28Re-ref to State and Local Government. If fav, re-ref to Finance. If fav, re-ref to Rules and Operations of the SenateMinor
- Mar 26Passed 1st ReadingMinor
- Mar 26Ref To Com On Rules and Operations of the SenateMinor
- Mar 25FiledIntroduced
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