Important Tax Exclusion for Builders
NCHBA Builder Members:
If you are holding in inventory for sale a single-family or duplex house or land which you have improved for residential or commercial purposes, you are eligible to have the value of these improvements exempted from local property taxes. This exclusion, which can last up to three years if the house or land continues to be held for sale, also applies to single-family and duplex houses under construction or land currently being developed.
Formerly, a builder was required to file for this exemption every January in the tax office where the property is located. However, in 2019 NCHBA successfully sought an amendment to the law applicable to the 2020 tax year and beyond, so that builders need only apply once to obtain the three-year exclusion.
If you successfully applied for this exemption in 2020, you will NOT need to file again for that same property this year (or in 2022) if it still qualifies for an exemption. However, it would be wise to check with your local county tax office to make sure they are correctly applying the exclusion for the 2021 tax year.
For qualifying property newly improved, an application is due by January 31 in the tax office where the property is located. If you failed to take advantage of this exclusion last year, you can still file for an exclusion for tax years two and/or three.
For more information and details on this law, click on this link
Don’t leave your money on the table! Apply by January 31 for this exemption.
FOR MORE INFORMATION CONTACT:
Mike Carpenter, firstname.lastname@example.org
Tim Minton, email@example.com
or call NCHBA at (800) 662-7129