HomeMy WebLinkAboutAgenda - 04-12-2005-6cORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 12, 2005
Action Agenda
Item No. ~- G
SUBJECT: Resolution Expressing Orange County's Position on Legislative Items
DEPARTMENT: Ccunty Manager PUBLIC HEARING: (Y/N) No
County Attorney
ATTACHMENT(S):
Resolution with Exhibits
INFORMATION CONTACT:
.John Link, ext.. 2300
Geof Gledhill, County Attorney, 732-2196
TELEPHONE NUMBERS:
Hillsborough
Chapel Hill
Durham
Mebane
732-8181
968-4501
688-7331
336-227-2031
PURPOSE: To consider approval of a resolution expressing Orange County's positions on two
legislative items.
BACKGROUND: The BOCC held a public hearing on March 1, 2005 on potential items for
inclusion in Orange County's legislative agenda package for the 2005 North Carolina General
Assembly Session. After the public hearing, the Board reviewed and approved three
resolutions (with associated materials) that requested Orange County's legislative delegation
introduce certain bills and that expressed Orange County's positions on various legislative
issues. It was noted at that time that the work of the Legislative Issues Task Force had been
based on the current information available and that new issues may arise in the ensuing months
necessitating additional BOCC review.
Since that time, staff has identified two issues on which the Board may wish to express its
positions. Those items are detailed in the attached draft resolution and are as follows:
1) House Bill 900 -Enhance On-Site Wastewater System Approvals, which seeks to
remove domestic wastewater system evaluation responsibility from local
governments, place that authority in the private sector, and leave local
governments with the liability if privately-approved wastewater systems fail..
2) Senate Bill 508 and House Bill 648, both entitled "Exempt Builder's Inventory",
which seek to exclude from taxation any increase in value of property attributable
to the subdivision of or other improvements made to property by a builder as long
as the builder continues to hold the property for sale.
After the BOCC reviews and considers approval of the attached resolution, it is suggested that
the resolution be forwarded with a cover letter to Orange County's legislative delegation,
leaders of the North Carolina General Assembly, the Governor, and the North Carolina
Association of County Commissioners. Providing a copy of the resolution to the North Carolina
Association of Local Health Directors may also be appropriate.
FINANCIAL IMPACT: There is no financial impact associated with consideration of the
resolution,
RECOMMENDATION(S): The Manager recommends that the Board review the attached draft
resolution, make changes as necessary, approve the resolution, and authorize the Clerk and
Chair to forward the resolutions, along with a cover letter, to Orange County's legislative
delegation, leaders of the General Assembly, the Governor, the North Carolina Association of
County Commissioners, and the North Carolina Association of Local Health Directors.
3
NORTH CAROLINA
ORANGE COUNTY
RESOLUTION REGARDING
LEGISLATIVE MATTERS
BE IT RESOLVED by the Board of County Commissioners of
Orange County that the Board hereby requests the Senator and
Representatives representing Orange County take the following
positions on legislation regarding the following matters:
1) Oppose House Bill 900 - Enhance On-Site Wastewater System
Approvals, a copy of the current version of which is
attached at Exhibit A, and any successor versions or
other similar bills (i.e. Companion Senate Bill 902),
which seek to remove domestic wastewater system
evaluation responsibility from local governments, place
that authority in the private sector, and leave local
governments with the liability if privately-approved
wastewater systems fail (a letter from the North Carolina
Association of Local Health Directors and a summary of
talking points on House Bill 900 are provided at Exhibits
B and C);
2) Oppose Senate Bill 508 and House Bill 648, both entitled
"Exempt Builder's Inventory", and for which copies of the
current versions of each are attached at Exhibits D and
1
4
E, and further oppose any successor versions or other
similar bills, which seek to exclude from taxation any
increase in value of property attributable to the
subdivision of or other improvements made to property by
a builder as long as the builder continues to hold the
property for sale;
Upon motion of Commissioner seconded by
Commissioner the foregoing resolution was adopted
this the day of
2005.
I, Donna Baker, Clerk to the Board of Commissioners for the
County of Orange, North Carolina, DO HEREBY CERTIFY that the
foregoing is a true copy of so much of the proceedings of said
Board at a meeting held on
2005 as relates in any
way to the adoption of the foregoing and that said proceedings
are recorded in Minute Book No. of the minutes of said
Board.
WITNESS my hand and the seal of said County, this day
of 2005.
Clerk to the Board of Commissioner
2
House Bi11900*-First Edition
~~~1sBST ,~ ~
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
H
HOUSE BILL 900*
Short Title: Enhance On-Site Wastewater System Approvals. (Public
Sponsors: Representatives Goforth and Brubaker (Primary Sponsors).
Referred to: Health.
March 28, 2005
A BILL TO BE ENTITLED
AN ACT TO AMEND THE PROCESS FOR THE ISSUANCE OF AN IMPROVEMENT
PERMIT FOR AN ON-SITE SUBSURFACE WASTEWATER SYSTEM BY REQUIRING
THE COMPLETION OF A SOIL AND SITE EVALUATION PRIOR TO THE ISSUANCE
OF AN IMPROVEMENT PERMIT; TO AUTHORIZE LOCAL HEALTH
DEPARTMENTS, AUTHORIZED AGENTS OF THE DEPARTMENT OF
ENVIRONMENT AND NATURAL RESOURCES, LICENSED SOIL SCIENTISTS, AND
PROFESSIONAL ENGINEERS TO COMPLETE SOIL AND SITE EVALUATIONS;
AND TO MAKE OTHER CHANGES.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 1.30A-334 reads as rewritten:
"§ 130A-334. Definitions.
The following definitions shall apply throughout this Article:
(7c) 'Professional engineer' has the same meaning as in G.S. 89C-3(8)_
(13b) 'Licensed soil scientist' has the same meaning as in G.S. 89F-3(3),
~~
SECTION 2. G.S. 130A-3.36 reads as rewritten:
"§ 130A-336. Improvement permit and authorization for wastewater system construction
required.
(a) Any proposed site for a residence, place of business, or place of public assembly in an
area not served by an approved wastewater system shall be evaluated by either (i) the local
health department,_(i)_a licensed sail scientist, or (iii) a professional engineer in accordance with
rules adopted pursuant to this Article. An improvement permit shall be issued in compliance
with the rules adopted pursuant to this Article. The local health department shall issue an
improvement permit after one of the follow.ing_has occurred:
(1) A soil and site evaluation_has_been completed by_an authorized agent of the
Department or local health department.
(2) The local health department receives a completed soil and site evaluation that
http://www.ncgastate.nc.us/Sessions/2005/Bills/House/HTML/H900vl.html 4/7/2005
House Bill 900x-First Edition
V
has been_ signed and sealed__by__(i) alicensed soil scientist or ii) a licensed soil
scientist and_a professional engineer in compliance with rules adopted by__the
Commission__pursuant to this _Article_uwA_ny_ complete application for an
improvement permit that has been ey_aluated_by_..Oalcensed soil scientist or
(i)__a__licensed soil scientist and a professional engineer shall___be_ deemed
permitted if the. local health department does not approve or deny the
improvement permit within 10 calend_a_r_days after receipt.of the application.
(al) An improvement permit shall include:
(1) For permits that are valid without expiration, a plat or, for permits that are
valid for five years, a site -plan_drawn to scale.
(2) A description of the facility the proposed site is to sere-serve and any factors
that would affect the wastewater load.
(3) The type and layout of the proposed wastewater system and its location.
(4) The design wastewater flow and characteristics,
(5) . A detailed soil profile_deseription of
(Sa) Any_proposed landscape, site, drama e or soil modifications.
(6) Any other information required by the rules of the Commission.
(a2 _ The improvement permit shall not be affected by change in ownership of the site for
the wastewater system provided both the site for the wastewater system and the facility the
system serves are unchanged and remain under the ownership or control of the person owning
the facility, No person shall commence or assist in the construction, location, or relocation of a
residence, place of business, or place of public assembly in an area not served by an approved
wastewater system unless an improvement permit and an authorization for wastewater system
construction are obtained from the local health department, This requirement shall not apply to a
manufactured residence exhibited for sale or stored for later sale and intended to be located at
another site after sale.
(b) The local health department shall issue an authorization for wastewater system
construction authorizing work to proceed and the installation or repair of a wastewater system
when it has determined after a field investigation that the system can be installed and operated in
compliance with this Article and rules adopted pursuant to this Article. This authorization for
wastewater system construction shall be valid for a period equal to the period of validity of the
improvement permit, not to exceed five years, and may be issued at the same time the
improvement permit is issued. No person shall commence or assist in the installation,
construction, or repair of a wastewater system unless an improvement permit and an
authorization for wastewater system construction have been obtained from the Department or
the local health department, No improvement permit or authorization for wastewater system
construction shall be required for maintenance of a wastewater system. The Department and the
local health department may impose conditions on the issuance of an improvement permit and
an authorization for wastewater system construction,
(c) Unless the Commission otherwise provides by rule, plans, and specifications for all
wastewater systems designed for the collection, treatment, and disposal of industrial process
wastewater shall be reviewed and approved by the Department prior to the issuance of an
authorization for wastewater system construction by the local health department.
http://www.ncgastate.nc,us/Sessions/2005Bills/House/HTML/H900vl.lrtml 4/7/2005
House Bill 900*-First Edition
(d) If a local health department repeatedly fails to issue or deny improvement permitO r
conventional septic tank systems within F8-20 c__alendar_days of receiving completed applications
for the permits, then the Department of Enviromnent and Natural Resources may withhold
public health funding from that local health department.
(_e) When a local health department_.ssues___an improvement permit or authorization to
construct based upon work performed by_a licensed soil scientist,- the improv_emept_permit or
authorization to construct shall bear a statement that reads: 'The soil s?te, and system evaluation
license. number____...__________.__(license number).'.
(fl When a local health department issues an improvement permit or authonzation_to
construct based upon_work_performed~by a licensed soil scientist and a professional engineer,
the improvement permit, or authorization to_construct shall bear a statement that reads: 'The soih
number).'.
(g)
and a professional engineer, the denial shall include_a_written report that specifically identifies
the_provisions of this Article or rules adopted_pursuant_to this_Article_on._which the denial is
based.
(h) A local health department shall not deny a complete application for an improvement
permit or authorization to construct th-at is submitted by (i) a licensed soil scientist or (ii) a
licensed soil scientist and a professional _engireer_unless the denial is__based on pernt
application review prepared by___(i)_a licensed soil scientist or (ii) a licensed soil scientist and a
professional engineer employed by or -under contract with the _ local health department. The
Commission shall adopt rules that specify uniform statewide procedures and allowable reasons
for denial of an application prepared by_(i)_a licensed_sol_~scientist_or (ii)_alicensed soil scientist
and a professional engineer, establishes t_he necessary_documentation_that must be included in
the application establishes the necessary- documentation that must be included in the local health
department's written permit application_rev_ ew report, and specify the rights and obligations of
each party-"
SECTION 3. G.S. 130A-337 reads as rewritten:
"§ 130A-337. Inspection; operation permit required.
(a) No system of wastewater collection, treatment and disposal shall be covered or placed
into use by any person until an inspection by (i)_the local health department,_(i) alicensed soil
scientist,.. or_._(iii) a licensed soil scientist and professional engineer has determined that the
system has been installed or repaired in accordance with any conditions of the improvement
permit, the rules, and this Article.
(b) Upon rxi~ri~ng-a dete_rminaton.by__O the local health_department,,_(ii) alicensed
soil scientist, or (iii) a licensed soil scientist a__nd._p_rofessional_engmeer__that the system is
properly installed or repaired and that the system is capable of being operated in accordance
with the conditions of the improvement permit, the rules, this Article and any conditions to be
imposed in the operation permit, as applicable, the local health deparhnent shall issue an
operation permit authorizing the residence, place of business or place of public assembly to be
http://www.negastate,nc.us/Sessions/2005/Bills/House/HTML/H900vL.htm1 4/7/2005
House Bill 900*-First Edition
occupied and for the system to be placed into use or reuse, If the determination is_completed
statement of certification to the local health department,. and. the local.. health department shall
issue the operations permit or deny the permit application within 10 business days_.of its receipt
or the operation permit shall be_d_eemed_pezmitted.
(c) Upon determination that an existing wastewater system has a valid operation permit
and is operating properly in a manufactured home park, the local health department shall issue
authorization in writing for a manufactured home to be connected to the existing system and to
be occupied, Notwithstanding G.S. 130A-336, an improvement permit is not required for the
connection of a manufactured home to an existing system with a valid operation permit in a
manufactured home park.
(d) No person shall occupy a residence, place of business or place of public assembly, or
place a wastewater system into use or reuse for a residence, place of business or place of public
assembly until an operation permit has been issued or deemed permitted pursuant to certif cation
of (i) _a__ licensed sail scientist or ii a licensed soil scientist and a professional. engineer, or
authorization has been obtained pursuant to G,S. 130A-.337(c)."
SECTION 4. G.S. 1.30A-3.38 reads as rewritten:
"§ 130A-338. Authorization for wastewater system construction required before other
permits to be issued.
Where construction, location or relocation is proposed to be done upon a residence, place of
business or place of public assembly, no permit required for electrical, plumbing, heating, air
conditioning or other construction, location or relocation activity under any provision of general
or special law shall be issued until an authorization for wastewater system construction has been
issued or_deemed permitted under G,S. 130A-336 or authorization has been obtained under
G,S. 130A-.337(c),"
SECTION 5. G,S. 1.30A-340 reads as rewritten:
"§ 130A-340. Review procedures and a~enls:appeals; violations.
(a) The Department, upon request by an applicant for an improvement permit, shall
provide a technical review of any scientific data and system design submitted by the applicant.
The data and system design shall be evaluated by professional peers of those who prepared the
data and system design. The results of the technical review shall be available prior to a decision
by the local health department and shall not affect an applicant's right to a contested hearing
under Chapter 150B of the General Statutes,
(b) Any__person may__file a complaint before the Commission if the person believes that
any person has.._violated_this Artiele,_rules adopted pursuant to this Article the tenns__or
conditions of_any pennit_ tssued_pursuant to this Article, has failed to take all reasonable steps to
ensure the competence_of services rendered by_any_person pursuant to a pennit issued pursuant
to_this Article, or has materially misrepresented~his. or her_professional_credentials.
(c,) The Commission may assess a civil_penalty_of_not.more thann._ten thousand dollars
($10~000)_against any person if the Commission Ends that the person has violated this Article
rules adopted pursuant to this. Article, the terms or conditions of any permit issued_pursuant.to
this Article, has failed to take. a_ll reasonable steps to ensure the competence of services rendered
by any person _p_u_r_s_uant to_,. a ,_pennit_ issued pursuant , to this Article,,__ or has materially.
misrepresented his or_her professional credentials~A.civil.penalty assessed under this subsection
for misrepresentation_of professional credentials_is in addition to any penalty assessed or
imposed purslant ,haptnr $9C or hapter 8~F of the General Statutes."
http://www..ncgastate, na us/Sessions/2005Bills/House/HTML/H900v l .htm1 4/7/2005
House Bill 900*-First Edition
U
SECTION 6. The Commission for Health Services shall adopt rules to implement
the provisions of this act on or before 1 July 2006.
SECTION 7. Sections 1 through S of this act become effective 1 .luly 2006, except
that G.S. 130A-336(al), as amended by Section 2 ofthis act, becomes effective 1 January 2006.
Sections 6 and 7 of this act are effective when it becomes law.
http://www.ncgastate.naus/Sessions/2005Bills/House/HTML/H900vl.html 4/7/2005
NORTH CAROLINA
~XN=BIT 6 io
ASSOCIATION of LOCAL HEALTH DIRECTORS
Ara Affiliate of tlae Nortl: Carolina Association of County Conanrissioners
P.O. Box 41487, Raleigh, North Carolina 27629-1487
April 4, 2005
Honorable Members of the House Health Committee:
The North Carolina Association of Local Health Directors requests your consideration of our concerns with H900 "Enhance On-site
Wastewater System Approvals". This is a major restructure of the On-Site Wastewater Program. The State Division of
Environmental Health and your local health departments were not consulted, though both state and local governments will be greatly
impacted. We are concerned with the liability, accountability, longevity and public service issues in the bill:
1. The permitting process for on-site wastewater disposal systems has long been a public agency mandate, These agencies have
permanence and a responsibility to the public that does not have an equivalent in the private sector.. There is no provision for
financial surety.. There is no guarantee that a private entity will be in business, or remain so, if problems should occur with a
wastewater system, and the facility owner seeks financial remedies.. Public agencies, on the other hand, are permanent and
responsible and accountable to the public. Local government would be lefr to deal with the problem and potential liability
should a system failure occur because of negligent evaluation/permitting. Under the proposed bill, the health department
(county/state) will retain the liability.
2. The Bill does not adequately address the issue of accountability of private consultants and the oversight of their work
performance. It is very difficult to maintain total objectivity in a process by wlilch one pays a private entity with the assumed
outcome to be the issuance of a permit. Public agencies have no vested interest in this process that would interfere with
objectivity. There is also potentially a great deal of pressure that would be brought upon the private consultant to issue a
permit, The Bill provides that the ultimate determination of accountability and penalty would be vested in the Commission.
The Commission, as currently structured, does not provide for the technical expertise or the time to effectively deal with
these issues. It would seem to require a completely new bureaucracy or major overhaul of current Commission agency
structure to address these issues.
3. There also exist several economic issues associated with this Bill. If the Local Health Department (LHD) does not, or cannot,
complete an evaluation of an application within the "10 day" time frame, a facility would likely be constmcted before the
LHD observed the site. If problems were encountered at tlils stage, the cost of any remedy to the homeowner could be quite
significant.
4. The Bill requires that a LHD contract with or employ a licensed soil scientist (LSS) in order to question the work of the
private L.SS, resulting in an additional economic burden on local government to assure the work of private sector.. The
majority of health departments do not have licensed soil scientists on staff. Local Health Departments do have environmental
health specialists who are trained in soils and on site sewage technology, and would be competent and capable of reviewing
data submitted by the private soil scientists and engineers
5. Monetary remedies in the proposed bill for individuals Found by the Commission to be in violation ($10,000) may not be
sufficient in dealing with problems associated with septic systems not working properly due to negligent evaluation
permitting. Repair permits for some residential systems can carry a $.30,000 price tag. Other situations may not allow a
repair option, resulting in the property owner having to vacate or perpetually pump and haul their waste, which is extremely
expensive, Again, Counties and the State will retain the liability.
Local Health Departments are required by statue to provide ten essential public health services including On-sight Domestic Sewage
Disposal. The public health perspective is the entire community, notjust an individual homeowner, and the protection of our
envirorunent in general. We ask that you support us in this effort by opposing this bill in the current form and allow us to work with
the bill sponsors to address the needs of the building industry, the liability issue and the protection of the public's health and the
environment,
Sincerely,
Donald Yousey, President
~XHTBS i C 6~
House Bill 900
Talking Points
1. The bill is poorly written and may conflict with itself in places and may also pose conflicts
with other existing statutes (e.g., RS Act and NCGS 130A).
2. There is a relatively recent enacted statutory framework for the licensing of Soil Scientists
(LSS) in North Carolina. However, there is no specialization requirement in this bill to
ensure that LSS's have any professional training or even working knowledge of on-site
wastewater systems.. Our experience has shown that many LSS's and engineers have no
clear understanding of the dynamics of siting or designing wastewater systems and
traditional formal education or field training is grossly insufficient to meet this demand.
The current authorization system for RS's in NC does provide for extensive training and
experience in on-site systems prior to having a legal ability to site, permit, inspect or
approve the systems.
3. In general, the "Deemed Permitted" clauses are problematic because they could allow
derelict work to proceed without oversight or correction in certain circumstances. For
example, think of the implications of a remiss private consultant who submits multiple
applications in the immediate aftermath of a natural disaster such as Hurricane Floyd.
Furthermore, counties with high development may also be pressed to meet the time
deadlines and they are the exact ones who will have higher densities with less regulatory
oversight. The use oftime-driven clauses in development/building statutes or codes is rare
in my experience and leads to undesired complications or end results.
4. The possibility exists in the framework of this bill for a wastewater system to be designed
(soil work and system design), permitted, installed, put into operation, and fail before the
local health department, or any other impartial expert for that matter) ever visited the site,
5. There will be great potentially liability for homeowners and local health departments for
those sites/systems that are evaluated by a private sector consultant and permitted by the
LHD and then fail. In cases where the LSS is no longer available or has little or no
financial security, the homeowner maybe left with little legal remedy other than to install a
new system (many time at great costs), abandon their home or to sue the LHD..
6. Under the proposal, LHD's without a LSS would have little to no legal ability to deny
applications even in situations with glazing defects.
7, Past experience has shown that processes involving private sector consultant work without
proper governmental oversight or ability to intervene created problems that eventually had
to be dealt with at great cost to homeowners and governments. The best example of this
was the North State Utilities fiasco where multiple subdivisions had community wastewater
systems that failed miserably and required lengthy extensions of public sewer lines as a
remedy„ The systems were sited, designed, installed uid operated with minimal
government involvement as the process allowed for self-certification of the sites and
systems by the private sector consultants. The sewer extensions were very expensive and
the costs were shared by the govenmients and homeowners because the utility had
insufficient financial surety to pay for the solution,
Senate Bill 508-First Edition
CX~z131.T D is
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
S
SENATE BILL 508
Short Title: Exempt Builders' Inventory. (Public)
Sponsors: Senators Dalton; Brown, Hartsell, Hoyle, Hunt, Swindell, and
Weinstein.
Referred to: Finance.
March 1 S, 2005
A BILL TO BE ENTITLED
AN ACT TO EXEMPT FROM PROPERTY TAX THE INCREASE IN VALUE OF REAL
PROPERTY HELD FOR SALE BY A BUILDER, TO THE EXTENT THE INCREASE
ATTRIBUTABLE TO SUBDIVISION OR IMPROVEMENTS BY THE BUILDER.
The General Assembly of North Carolina enacts:
SECTION 1. G.S, l OS-27.3 is amended by adding a new subdivision to read:
(3a) "Builder" means a taxpayer engaged in the business of buying real property
making improvements to it, and then reselline it."
SECTION 2. Article 12 of Chapter IOS of the General Statutes is amended by
adding a new section to read:
"§_._ 10$-27702. Certain real property held for sate classified _for .taxation at_redueed
valuation.
Real__property held for sale by a builder is designated a special_ class_of property under
authorty_ of_Article V~, Seo~2(2.) of the_.North Carolina__Constrtuhon_ Any_inerease in_value_of
this__ classif ed property attributable to _ subdivision_ of or other__improv_ements_made . to the
proper_tya_ by the builder, is excluded from taxation under thrs Subchapter as_ long_as the builder
continues to hold the_property_for sale. In no event shall this exclusion extend for_more than f v_e_
years froln_the time the improved property was_f rst subject to being fisted for taxatton. by the
builder. The_builder must apply__for this_ exclusion annually_as__pro_yded in G.S. lOS 282w1...In
appraising property classifed under_this section,_the assessor shall specify what portron of the
value is an increase attributable to subdivision or other improvement by the builder."
SECTION 3. G.S. lOS-287(d) reads as rewritten:
"(d) Notwithstanding subsection (a), if a tract of land has been subdivided into lots and
more than five acres of the tract remain unsold by the owner of the tract, the assessor ~a~+-shall
appraise the unsold portion as land acreage rather than as lots. A tract is considered subdivided
into lots when the lots are located on streets laid out and open for travel and the lots have been
sold or offered for sale as lots since the last appraisal of the property,"
SECTION 4. This act is effective for taxes unposed for taxable years beginning on
or after July 1, 2006,
http://www.ncgastate,naus/Sessions/2005/Bills/Senate/HTML/SS 08v L html 4/7/2005
House Bill 648-First Edition
~XNz1~TT ~ ~T
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2005
H
HOUSE BILL 648
Short Title: Exempt Builder's Inventory. (Public
Sponsors: Representatives Moore; Culp, Current, and Starnes.
Referred to: Finance.
March 16, 2005
A BILL TO BE ENTITLED
AN ACT TO EXEMPT FROM PROPERTY TAX TIIE INCREASE IN VALUE OF REAL
PROPERTY HELD FOR SALE BY A BUILDER, TO THE EXTENT 7HE INCREASE IS
ATTRIBUTABLE TO SUBDIVISION OR IMPROVEMENTS BY THE BUILDER.
The General Assembly of North Carolina enacts:
SECTION 1. G.S, 105-273 is amended by adding a new subdivision to read:
"(3a) 'Builder' means a taxpayer engaged in the business of buying real property,
making impro_v_ements_to it,_and then reselling_it."
SECTION 2. Article 12 of Chapter 10S of the General Statutes is amended by
adding a new section to read:
"§_105-277.02. Certain real property held for sale classified for taxation at reduced
valuation.
Real property held for sale by a builder is designated a special class of property under
authority of Section 2(2) of Article V of the North Carolina Constitution. Any increase in value
of this classified property attributable to subdivision of or other improvements made to the
property the builder is excluded from taxation under this Subchapter as long as the builder
continues to hold the property for sale. The builder must apply for this exclusion annually_as
provided in G.S. 105-282.1. In appraising_prop~ classified under this section the assessor
shall specify what portion of the value is an increase attributable to subdivision or other
improvement by the builder."
SECTION 3. G,S, 10.5-287(d) reads as rewritten:
"(d) Notwithstanding subsection (a), if a tract of land has been subdivided into lots and
more than five acres of the tract remain unsold by the owner of the tract, the assessor tHa~+-shall
appraise the unsold portion as land acreage rather than as lots, A tract is considered subdivided
into lots when the lots are located on streets laid out and open for travel and the lots have been
sold or offered for sale as lots since the last appraisal of the property,"
SECTION 4. This act becomes effective for taxable years beginning on or after
.Tanuary 1, 2006,
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