Builder Inventory Tax Exemption Bill Heads To Governor
The Independence Day holiday made for a short week at the General Assembly last week. While the leaders in the House chose not to meet and come back this week, the Senate maintained business as usual on both Monday and Tuesday. The Senate was able to move several bills last week, before turning their attention back to the vetoed budget. One of those bills will be greatly beneficial to the home building industry.
On Tuesday, the Senate unanimously passed HB 492 (Simplify Builder Inventory Exclusion) 43-0. The bill is sponsored by Representatives Mark Brody (R-Union), Julia Howard (R-Davie), and Brian Turner (D-Buncombe). As previously stated in last week’s report, the bill would eliminate the yearly administrative hurdle in claiming a tax reduction on a builder’s inventory. In 2015, NCHBA legislative staff worked with House and Senate members for the passage of HB 168 (Exempt Builders’ Inventory) which allowed a builder to claim an exemption from higher property taxes on land and houses held for sale by a builder to the extent that the increase is attributable to subdivision or other improvement. This law excludes from the annual tax bill any increased assessment arising from the improvements on any land or home held for sale.
Currently, a builder is required to file for this exemption every January in the tax office of the county where the property is located. This bill would relieve the builder from having to file for this exemption every year after filing the first year as long as the property continues to be held as the builder’s inventory.
Both the House and Senate are expected back in Raleigh this week to address the recently vetoed budget. NCHBA’s legislative team will continue to push forward on our proactive legislative agenda, while guarding against any last minute challenges.
Legislator of the Week
Senator Jim Burgin (R-Harnett, Johnston, Lee)
We would like to thank our Legislator of the Week, Senator Jim Burgin. Senator Burgin is currently serving his first term in the North Carolina Senate and has worked with NCHBA’s legislative team in supporting our agenda from day one. Senator Burgin serves as Chairman of the Board to New Horizon Insurance Group, which sells Builders Mutual insurance products. Thank you, Senator Burgin, for being an ardent supporter of housing affordability and the home building industry.