NORTH CAROLINA GENERAL ASSEMBLY
1977 SESSION

CHAPTER 517
HOUSE BILL 1194

AN ACT TO MODIFY THE PROVISIONS OF ARTICLE 4A of G.S. CHAPTER 160A, REGARDING THE PRORATION OF MUNICIPAL TAXES UPON ANNEXATION.

The General Assembly of North Carolina enacts:

Section 1.  Unless otherwise required by context, all references in this act to sections of G.S. Chapter 160A refer to those sections as they appear in the 1976 Replacement Volume 3D of the General Statutes.
Sec. 2.  G.S. 160A-24 is amended by striking the final four sentences thereof, which begin with the words "If territory is annexed", and inserting in lieu thereof the following: "Real and personal property in the newly annexed territory on the January 1 immediately preceding the beginning of the fiscal year in which the annexation becomes effective is subject to municipal taxes as provided in G.S. 160A-58.10."
Sec. 3.  G.S. 160A-28 is amended by striking the final sentence thereof and inserting in lieu thereof the following: "Real and personal property in the newly annexed territory on the January 1 immediately preceding the beginning of the fiscal year in which the annexation becomes effective is subject to municipal taxes as provided in G.S. 160A-58.10."
Sec. 4.  G.S. 160A-31(e) is amended by striking the second through sixth sentences thereof (leaving only the first and final sentences) and inserting in lieu thereof the following: "Real and personal property in the newly annexed territory on the January 1 immediately preceding the beginning of the fiscal year in which the annexation becomes effective is subject to municipal taxes as provided in G.S. 160A-58.10."
Sec. 5.  G.S. 160A-37(f) is amended by striking the second through sixth sentences thereof (leaving only the first and final sentences) and inserting in lieu thereof the following: "Real and personal property in the newly annexed territory on the January 1 immediately preceding the beginning of the fiscal year in which the annexation becomes effective is subject to municipal taxes as provided in G.S. 160A-58.10."
Sec. 6.  G.S. 160A-49(f) is amended by striking the second through fifth sentences thereof and inserting in lieu thereof the following: "Real and personal property in the newly annexed territory on the January 1 immediately preceding the beginning of the fiscal year in which the annexation becomes effective is subject to municipal taxes as provided in G.S. 160A‑58.10."
G.S. 160A-49(f) is further amended by striking the eighth sentence thereof, which deals with the municipality obtaining property tax listing records from the county.
Sec. 7.  G.S. 160A-58.3 is amended by striking the second through sixth sentences thereof (leaving only the first and final sentences) and inserting in lieu thereof the following: "Real and personal property in the newly annexed territory on the January 1 immediately preceding the beginning of the fiscal year in which the annexation becomes effective is subject to municipal taxes as provided in G.S. 160A-58.10."
Sec. 8.  General Statutes Sections 160A-58.7 through 160A-58.9 are reserved for future codification purposes.
Sec. 9.  G.S. Chapter 160A, Article 4A, is amended by adding a new Part 5, to read as follows:
"PART 5.
"Property Tax Liability of Newly Annexed Territory.
"§ 160A-58.10.  Tax of newly annexed territory. — (a) Applicability of section. Real and personal property in territory annexed pursuant to this Article is subject to municipal taxes as provided in this section.
(b)	Prorated taxes. Real and personal property in the newly annexed territory on the January 1 immediately preceding the beginning of the fiscal year in which the annexation becomes effective is subject to prorated municipal taxes levied for that fiscal year as provided in this subsection. The amount of municipal taxes that would have been due on the property had it been within the municipality for the full fiscal year shall be multiplied by the following fraction: the denominator shall be 12 and the numerator shall be the number of full calendar months remaining in the fiscal year, following the day on which the annexation becomes effective. The product of the multiplication is the amount of prorated taxes due. The lien for prorated taxes levied on a parcel of real property shall attach to the parcel taxed on the listing date, as provided in G.S. 105-285, immediately preceding the fiscal year in which the annexation becomes effective. The lien for prorated taxes levied on personal property shall attach on the same date to all real property of the taxpayer in the taxing unit, including the newly annexed territory. If the annexation becomes effective after June 30 and before September 2, the prorated taxes shall be due and payable on the first day of September of the fiscal year for which the taxes are levied. If the annexation becomes effective after September 1 and before the following July 1, the prorated taxes shall be due and payable on the first day of September of the next succeeding fiscal year. The prorated taxes are subject to collection and foreclosure in the same manner as other taxes levied for the fiscal year in which the prorated taxes become due.
(c)	Taxes in subsequent fiscal years. In fiscal years subsequent to the fiscal year in which an annexation becomes effective, real and personal property in the newly annexed territory is subject to municipal taxes on the same basis as is the preexisting territory of the municipality.
(d)	Transfer of tax records. For purposes of levying prorated taxes the municipality shall obtain from the county a record of property in the area being annexed that was listed for taxation on the January 1 immediately preceding the fiscal year for which the prorated taxes are levied. In addition, if the effective date of annexation falls between January 1 and June 30, the municipality shall, for purposes of levying taxes for the fiscal year beginning July 1 following the date of annexation, obtain from the county a record of property in the area being annexed that was listed for taxation as of said January 1."
Sec. 10.  If an annexation became or becomes effective after December 31, 1975, and before July 1, 1977, and newly annexed property was or is taxed under the procedures of G.S. 160A-24, G.S. 160A-31(e), G.S. 160A-37(f), G.S. 160A-49(f), or G.S. 160A-58.3, as those sections read immediately before the effective date of Chapter 576 of the 1975 Session Laws, that method of taxation is hereby validated. No person may be held liable under G.S. 105-380 or any other statute because those procedures were followed rather than the procedures established by Chapter 576 of the 1975 Session Laws.
Sec. 11.  This act becomes effective upon ratification. However, any annexation already adopted on or before July 3, 1977, may be implemented under the provisions of Chapter 576 of the 1975 Session Laws.
In the General Assembly read three times and ratified, this the 9th day of June, 1977.