Builder's Inventory Deferment
Effective for taxes imposed for the taxable years beginning on or after July 1, 2010, North Carolina General Statute 105-277.1D allows for the deferral of property taxes on a residence contracted by a builder or owned by the builder or a business entity of which the builder is a member.
A residence is defined as “an improvement, other than remodeling, renovation, rehabilitation, or refinishing by a builder to real property that is intended to be sold and used as an individual’s residence, that is unoccupied, and for which a Certificate of Occupancy authorized by law has been issued.”
A builder is defined by N.C.G.S. 105-273(3a) “A taxpayer licensed as a general contractor under G.S. 87-1 and engaged in the business of buying real property, making improvements to it, and then reselling it.”
A builder may choose to defer the portion of tax imposed on real property that represents the increase in value of the property attributable solely to improvements resulting from construction by the builder of a residence on the property. Land is not eligible under this program and will be taxed at market value.
Taxes deferred become a lien on the real property as provided by N.C.G.S. 105-355(a). Taxes may be deferred for the current year and up to three prior years. Deferred taxes, plus accrued interest, become due and payable when the property loses it eligibility. A property may lose its eligibility due to the following disqualifying events:
· Ownership of the residence is transferred from the builder to anyone
· The residence becomes occupied by the builder or someone other than the builder with the builders consent
· Five years from the time the improved property was first subject to taxation by the builder
· Three years from the time the imposed property first received the property tax benefit
Applications for Builder’s Inventory Deferral Program must be timely-filed during the regular listing period, January 1 through January 31, in order to be considered eligible.
It is the owner’s responsibility to notify the Assessor of any changes to the property.
Questions?
Dee Hill Exemption & Present-Use Appraiser dhill@hendersoncountync.org 828 698-4424
Send Us Your Comments!
We are always interested to receive feedback and suggestions from the community. Would you like to comment on your visit to our office or web site? Rate our service! Is there a new service you would like us to offer the community? CLICK HERE to fill out a form and let us know what you're thinking!
200 North Grove St,
Suite 102
Hendersonville NC, 28792
Phone: (828) 697-4870
Fax: (828) 697-4578
