Frequently Asked Questions
Transfer
of Property
Q: A municipality purchases a parcel of real
property from a land developer on April 1, 2004. What
portion of the 2004-05 taxes on the land is the municipality
responsible for paying?
A: The municipality must deduct from the purchase
price all taxes that are a lien on the property
and all special assessments and pay those amounts
to the proper taxing units. GS 105-385(c) provides:
"(c) Governmental Purchasers.--Any agency,
department, or institution of the State of North
Carolina and any county or municipal corporation
that purchases real property shall satisfy all taxes
constituting a lien upon the property purchased
and all special assessments or installments thereof
then due by deducting the amount of the taxes and
special assessments from the purchase price and
paying it to the proper taxing unit or units. Any
agency, department, or institution of the State
and any county or municipal corporation that fails
to make the deductions and payments required by
this subsection (c) shall be liable to the taxing
unit or units to which the taxes and special assessments
are owed for the amount thereof. This liability
may be enforced in a civil action brought by the
taxing unit or units to which the taxes and special
assessments are owed in the appropriate trial division
of the General Court of Justice of the county in
which the property is located; this remedy shall
be in addition to any remedies the taxing unit may
have against the grantor of the property."
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