North CarolinaSix properties sit outside the boundaries of three North Carolina municipalities
Six listed properties lie outside Southport, Yadkinville, and Kannapolis, with city or town tax exemptions for tax years beginning on or after July 1, 2026.
What it does
Six listed properties sit outside Southport, Yadkinville, and Kannapolis. Property in those areas as of January 1, 2026, is exempt from city or town taxes for tax years beginning on or after July 1, 2026. Earlier secured debts for taxes or special property charges remain collectible.
Sunset Beach cannot use its planning authority outside town limits over one listed property. Its development rules and enforcement continue during the transition required by state law.
East Spencer is exempt from the rule limiting separate town areas to 10% of its main land area. Other requirements for adding land to the town still apply.
Argument forThe city and town tax exemptions could lower tax bills for owners of the six listed properties.
Argument againstAllowing separate areas beyond the cap could leave East Spencer with more spread-out territory, making town services harder to coordinate.
More detail
Six listed properties are outside the boundaries of Southport, Yadkinville, and Kannapolis. The parcels are Southport’s 221MB015, 221MB020, and 221MB02001; Yadkinville’s 5816103271; and Kannapolis’s 46928542120000 and 46927593330000. Yadkinville’s parcel is also outside its planning authority beyond town limits. The tax exemption covers property in the listed areas as of January 1, 2026. Earlier liens—claims against property for unpaid city or town taxes or special property charges—remain valid. The cities and towns may collect them or foreclose on the properties. The boundary provisions took effect June 30, 2026. The preserved property claims are those outstanding before that date.
Sunset Beach cannot exercise its planning authority outside town limits over the listed property. This provision covers Brunswick County parcel 2273A155. The town’s development rules and enforcement remain in effect until the transition point set by G.S. 160D-202(h). The town’s surrender of this authority took effect when the law became law on May 7, 2026.
East Spencer is exempt from the 10% land-area cap for adding areas that do not touch its main boundaries. The cap compares the combined size of separate town areas with the land inside the town’s main boundaries. The exemption applies only to the land-area cap; other requirements for adding separate areas still apply. This provision took effect when the law became law on May 7, 2026.
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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
- May 7RatifiedLatest
- May 7Ch. SL 2026-2Major
- May 6Conf Report Adopted 3rd
- Vote recorded R3 Ruled Mat'l C RPT Adoption. Result: pass.Lower
- May 6Ordered EnrolledTo Governor
- Apr 30Conf Report Adopted 3rd
- Vote recorded Conference Rpt Third Reading. Result: pass.Upper
- Apr 29Conf Report Adopted 2nd
- Apr 29Placed On Cal For 05/06/2026
- Apr 29Conf Report Passed 2nd
- Apr 28Conf Com #2 Reported
- Apr 28Ruled Material
- Apr 28Placed On Cal For 04/29/2026
- Apr 28Conf Rept Withdrawn
- Apr 28Conf Com #2 Reported
- Apr 28Placed On Cal For 04/29/2026
- Apr 27Withdrawn From Cal
- Apr 27Conf Rpt Withdrawn
- Apr 22Conf Report Passed 2nd
- Apr 22Placed On Cal For 04/28/2026
- Apr 22Withdrawn From Cal
- Apr 22Placed On Cal For 04/28/2026
- Apr 21Conf Com Reported
- Apr 21Held As Material
- Apr 21Placed On Cal For 04/22/2026
- Apr 21Conf Com Reported
- Apr 21Ruled Material
- Apr 21Placed On Cal For 04/22/2026
- 2025
- Oct 20Conf Com Appointed
- Oct 20Conf Com Appointed
- Sep 22Withdrawn From Com
- Sep 22Placed on Today's Calendar
- Sep 22Failed Concur In H Com Sub
- Jul 31Regular Message Sent To Senate
- Jul 31Regular Message Received For Concurrence in H Com Sub
- Jul 31Ref To Com On Rules and Operations of the SenateMinor
- Jul 30Passed 3rd ReadingPassed House
- Jul 29Passed 2nd ReadingMinor
- Jul 28Reptd FavMinor
- Jul 28Cal Pursuant Rule 36(b)
- Jul 28Placed On Cal For 07/29/2025
- Jun 24Reptd Fav Com Sub 2Minor
- Jun 24Ruled Material
- Jun 24Re-ref Com On Rules, Calendar, and Operations of the HouseMinor
- Jun 17Reptd Fav Com SubstituteMinor
- Jun 17Ruled Material
- Jun 17Re-ref Com On FinanceMinor
- Jun 11Withdrawn From Com
- Jun 11Re-ref to the Com on State and Local Government, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the HouseMinor
- Apr 1Passed 1st ReadingMinor
- Apr 1Ref To Com On Rules, Calendar, and Operations of the HouseMinor
- Mar 31Regular Message Sent To House
- Mar 31Regular Message Received From Senate
- Mar 27Passed 3rd ReadingPassed Senate
- Mar 26Passed 2nd ReadingMinor
- Mar 20Withdrawn From Cal
- Mar 20Placed On Cal For 03/26/2025
- Mar 19Reptd FavMinor
- Mar 18Reptd Fav Com SubstituteMinor
- Mar 18Com Substitute Adopted
- Mar 18Re-ref Com On Rules and Operations of the SenateMinor
- Mar 11Reptd FavMinor
- Mar 11Re-ref Com On FinanceMinor
- Mar 3Passed 1st ReadingMinor
- Mar 3Ref to State and Local Government. If fav, re-ref to Finance. If fav, re-ref to Rules and Operations of the SenateMinor
- Feb 27FiledIntroduced
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