Special Property Tax Rules for Affordable Housing

<p>North Carolina law offers a variety of exemptions, exclusions, and appraisal benefits for property used to provide housing for low- or moderate-income residents. Here is a quick summary of those special rules with links to the full statutes and to more-detailed blog posts on related issues.</p> <p>Exemption for Government-Owned Low-Income Housing Property (G.S. 105-278.1):</p> <p>All property owned by a government (local, state, or federal) is entirely exempt from property taxes.  If a low-income housing project is owned by a government, it is exempt. This exemption is available even if the property is technically owned and listed for taxation by a private business entity so long as a government is the ultimate controlling owner of that entity.  (See this blog post for more details about ownership structures.)</p> <p>No application is required for this exemption, as the assessor should automatically exempt all government-owned property.</p> <p>Exemption for Privately Owned Low- or Moderate-Income Housing (G.S. 105-278.6)</p> <p>Property owned by a non-profit organization and used for low- or moderate-income housing is entirely exempt from local property taxes.  A non-profit can share ownership with for-profit entities without destroying the property’s exemption under this provision.  (See this blog post for more details about ownership structures.)</p> <p>This exemption also applies to property that is held for future use as low- or moderate-income housing.  In this situation, taxes on the property are deferred rather than exempted and will become payable if the property is not used for low- or moderate-income housing within ten years of the year in which the property first received the deferral.  G.S. 105-278.6(e).</p> <p>This exemption is not automatic; to receive the [...]</p>