GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H D
HOUSE BILL DRH40215-NIxf-13B
Short Title: Farmers' Assistance Grant Program. (Public)
Sponsors: Representative McNeely.
Referred to:
*DRH40215 -NIxf-13B*
A BILL TO BE ENTITLED 1
AN ACT TO INCREASE THE CARRYFORWARD OF DEFERRED PROPERTY TAX ES 2
FOR PRESENT-USE VALUE PROPERTIES FROM THREE YEARS TO SIX YEARS , TO 3
CREATE A LOCAL GRANT PROGRAM USING THE EXCESS FUNDS CREATED 4
THEREBY TO PROVIDE GRANTS TO ELIGIBLE FARMERS, AND TO PROVIDE 5
THAT PRIOR TO ANNEXING CERTAIN PRESENT -USE VALUE PROPERTY, A CITY 6
MUST OBTAIN APPROVAL FROM THE BOARD OF COUNTY COMMISSIONERS . 7
The General Assembly of North Carolina enacts: 8
SECTION 1. G.S. 105-277.4 reads as rewritten: 9
"§ 105-277.4. Agricultural, horticultural and forestland – Application; appraisal at use 10
value; notice and appeal; deferred taxes. 11
… 12
(c) Deferred Taxes. – Land meeting the conditions for classification under 13
G.S. 105-277.3 must be taxed on the basis of the value of the land for its present use. The 14
difference between the taxes due on the present-use basis and the taxes that would have been 15
payable in the absence of this classification, together with any interest, penalties, or costs that 16
may accrue thereon, are a lien on the real property of the taxpayer as provided in G.S. 105-355(a). 17
The difference in taxes must be carried forward in the records of the taxing unit or units as 18
deferred taxes. The deferred taxes for the preceding three six fiscal years are due and payable in 19
accordance with G.S. 105-277.1F when the property loses its eligibility for deferral as a result of 20
a disqualifying event. event; provided, however, that the deferred taxes due and payable for each 21
year after the most recent preceding three fiscal years, and ending with the most recent preceding 22
sixth fiscal year, shall be deposited to the funds created by G.S. 153A-466 or G.S. 160A-499.11, 23
as appropriate. A disqualifying event occurs when the land fails to meet any condition or 24
requirement for classification or when an application is not approved. 25
…." 26
SECTION 2.(a) Article 23 of Chapter 153A of the General Statutes is amended by 27
adding a new section to read: 28
"§ 153A-466. Farmers' Assistance Grant Program. 29
(a) Definitions. – The following definitions apply in this section: 30
(1) Agricultural land. – As defined in G.S. 105-277.2. 31
(2) Board. – A board of county commissioners. 32
(3) County. – As defined in G.S. 153A-1. 33
(4) Eligible farmer. – An owner of agricultural land, horticultural land, or 34
forestland that is taxed at its present-use value in accordance with 35
G.S. 105-277.4. 36
H.B. 348
Mar 10, 2025
HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
Page 2 DRH40215-NIxf-13B
(5) Forestland. – As defined in G.S. 105-277.2. 1
(6) Fund. – A fund created by a board in accordance with subsection (b) of this 2
section. 3
(7) Horticultural land. – As defined in G.S. 105-277.2. 4
(b) Creation and Purpose of Fund. – The board of every county shall create a fund, in 5
accordance with the requirements of the Local Government Budget and Fiscal Control Act, as 6
amended, to provide grants to eligible farmers located within that county to support the continued 7
vitality of the State's unique and historic agricultural, horticultural, and forestry-related 8
economies, in accordance with this section. 9
(c) Source. – A fund created by a county under this section shall consist of the deferred 10
taxes paid to that county in accordance with G.S. 105-277.4(c). 11
(d) Application Required. – Grants from the fund may only be awarded to eligible farmers 12
that have submitted an application. A board shall use an application created by the Department 13
of Revenue for purposes of complying with this subsection. 14
(e) Administration. – The board of each county shall administer its respective fund and 15
shall develop guidelines providing for the administration of the fund. The guidelines shall include 16
the following provisions, which shall apply to each grant from the fund: 17
(1) Grants shall only be awarded on an application-by-application basis. 18
(2) No eligible farmer may receive more than one grant from the fund during a 19
budget year. 20
(3) Grant awards to an eligible farmer during a budget year shall be limited to the 21
lesser of (i) ten thousand dollars ($10,000) or (ii) ten percent (10%) of the then 22
available balance in the fund. 23
(4) An eligible farmer may not receive a total of more than five grants from the 24
fund. 25
(5) Grants shall only be awarded and used for purposes consistent with the growth 26
and sustainability of the State's agricultural, horticultural, or forestland 27
economies. 28
(6) Boards shall prioritize awarding grant funding under this section to eligible 29
farmers that demonstrate the greatest financial need." 30
SECTION 2.(b) Article 21 of Chapter 160A of the General Statutes is amended by 31
adding a new section to read: 32
"§ 160A-499.11. Farmers' Assistance Grant Program. 33
(a) Definitions. – The following definitions apply in this section: 34
(1) Agricultural land. – As defined in G.S. 105-277.2. 35
(2) City. – As defined in G.S. 160A-1. 36
(3) Council. – As defined in G.S. 160A-1. 37
(4) Eligible farmer. – An owner of agricultural land, horticultural land, or 38
forestland that is taxed at its present-use value in accordance with 39
G.S. 105-277.4. 40
(5) Forestland. – As defined in G.S. 105-277.2. 41
(6) Fund. – A fund created by a council in accordance with subsection (b) of this 42
section. 43
(7) Horticultural land. – As defined in G.S. 105-277.2. 44
(b) Creation and Purpose of Fund. – The council of every city shall create a fund, in 45
accordance with the requirements of the Local Government Budget and Fiscal Control Act, as 46
amended, to provide grants to eligible farmers located within that city to support the continued 47
vitality of the State's unique and historic agricultural, horticultural, and forestry-related 48
economies, in accordance with this section. 49
(c) Source. – A fund created by a city under this section shall consist of the deferred taxes 50
paid to that city in accordance with G.S. 105-277.4(c). 51 General Assembly Of North Carolina Session 2025
DRH40215-NIxf-13B Page 3
(d) Application Required. – Grants from the fund may only be awarded to eligible farmers 1
that have submitted an application. A council shall use an application created by the Department 2
of Revenue for purposes of complying with this subsection. 3
(e) Administration. – The council of each city shall administer its respective fund and 4
shall develop guidelines providing for the administration of the fund. The guidelines shall include 5
the following provisions, which shall apply to each grant from the fund: 6
(1) Grants shall only be awarded on an application-by-application basis. 7
(2) No eligible farmer may receive more than one grant from the fund during a 8
budget year. 9
(3) Grant awards to an eligible farmer during a budget year shall be limited to the 10
lesser of (i) ten thousand dollars ($10,000) or (ii) ten percent (10%) of the then 11
available balance in the fund. 12
(4) An eligible farmer may not receive a total of more than five grants from the 13
fund. 14
(5) Grants shall only be awarded and used for purposes consistent with the growth 15
and sustainability of the State's agricultural, horticultural, or forestland 16
economies. 17
(6) Councils shall prioritize awarding grant funding under this section to eligible 18
farmers that demonstrate the greatest financial need." 19
SECTION 3. No later than December 1, 2025, the Department of Revenue shall 20
create and provide counties and local governments with copies of the application required under 21
G.S. 153A-466(d) and G.S. 160A-499.11(d), as created by Sections 2(a) and 2(b) of this act. The 22
Department may consult with any other relevant State agency or local government for the purpose 23
of creating applications under this section. The applications created by the Department under this 24
section shall be uniform statewide and shall, at a minimum, provide for the following: 25
(1) Certification that the applicant is an eligible farmer as defined in 26
G.S. 153A-466 and G.S. 160A-499.11. 27
(2) Certification that any grant funding awarded under G.S. 153A-466 or 28
G.S. 160A-499.11 will be used by the applicant for purposes consistent with 29
the growth and sustainability of the State's agricultural, horticultural, or 30
forestland economies. 31
(3) Certification that the applicant intends to remain an eligible farmer for a 32
minimum of one year following receipt of each grant awarded to the applicant 33
under G.S. 153A-466 or G.S. 160A-499.11, as appropriate. 34
(4) A requirement that the applicant submit documentation detailing the 35
applicant's need for grant funding and the intended uses by the applicant of 36
any funds awarded. 37
(5) A requirement that the applicant provide the county or local government, as 38
appropriate, with any relevant financial or other documentation necessary to 39
determine the applicant's eligibility and appropriateness for a grant under 40
G.S. 153A-466 or G.S. 160A-499.11. 41
SECTION 4. G.S. 160A-58.2 reads as rewritten: 42
"§ 160A-58.2. Public hearing. 43
(a) Upon receipt of a petition for annexation under this Part, the city council shall cause 44
the city clerk to investigate the petition, and to certify the results of his investigation. If the clerk 45
certifies that upon investigation the petition appears to be valid, the council shall fix a date for a 46
public hearing on the annexation. Notice of the hearing shall be published once at least 10 days 47
before the date of hearing. 48
(b) At the hearing, any person residing in or owning property in the area proposed for 49
annexation and any resident of the annexing city may appear and be heard on the questions of 50
the sufficiency of the petition and the desirability of the annexation. If the council then finds and 51 General Assembly Of North Carolina Session 2025
Page 4 DRH40215-NIxf-13B
determines that (i) the area described in the petition meets all of the standards set out in 1
G.S. 160A-58.1(b), (ii) the petition bears the signatures of all of the owners of real property 2
within the area proposed for annexation (except those not required to sign by G.S. 160A-58.1(a)), 3
(iii) the petition is otherwise valid, and (iv) the public health, safety and welfare of the inhabitants 4
of the city and of the area proposed for annexation will be best served by the annexation, the 5
council may adopt an ordinance annexing the area described in the petition. The ordinance may 6
be made effective immediately or on any specified date within six months from the date of 7
passage. 8
(c) Notwithstanding the provisions of subsection (b) of this section, prior to the public 9
hearing, the city council shall direct the planning department to determine whether zoning the 10
area for residential use will increase the number of students attending public school in the county 11
in which the area is located to more than one hundred percent (100%) of the county's current 12
capacity if the area meets all of the following: 13
(1) Is agricultural land, forestland, or horticultural land, as defined in 14
G.S. 105-277.2. 15
(2) Is not contiguous to the city's primary corporate limits. 16
(3) Is not within the city's extraterritorial planning jurisdiction. 17
(d) If the planning department finds that zoning the area for residential use will increase 18
the number of students as provided in subsection (c) of this section, the board of county 19
commissioners with jurisdiction over the area must approve the annexation prior to the city 20
council adopting the annexation ordinance. If the board of county commissioners does not 21
approve the annexation, the city council may not proceed with the adoption of the annexation 22
ordinance unless it is willing to pay the county the amount necessary to come back into 23
compliance with school capacity." 24
SECTION 5. The extended carryforward of deferred property taxes under 25
G.S. 105-277.4(c), as amended by Section 1 of this act, becomes effective for taxes imposed for 26
taxable years beginning on or after July 1, 2026. Properties already having three or more years 27
of deferred taxes under G.S. 105-277.4(c) as of the date this act becomes law shall phase in to 28
the first year of the extended carryforward (year four of six), beginning July 1, 2026. Sections 2 29
and 3 of this act become effective upon the earlier of (i) the date this act becomes law or (ii) 30
October 1, 2025. Section 4 of this act becomes effective July 1, 2025, and applies to petitions for 31
annexation received on or after that date. Except as otherwise provided, this act is effective when 32
it becomes law. 33