North Carolina 2025-2026 Regular Session

North Carolina House Bill H348 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1		GENERAL ASSEMBLY OF NORTH CAROLINA
2	2		SESSION 2025
3		-	H 1
4		-	HOUSE BILL 348
	3	+	H D
	4	+	HOUSE BILL DRH40215-NIxf-13B
	5	+
5	6
6	7
7	8		Short Title: Farmers' Assistance Grant Program. (Public)
8		-	Sponsors: Representatives McNeely, Penny, Huneycutt, and Jeffers (Primary Sponsors).
9		-	For a complete list of sponsors, refer to the North Carolina General Assembly web site.
10		-	Referred to: Agriculture and Environment, if favorable, Finance, if favorable, Rules, Calendar,
11		-	and Operations of the House
12		-	March 11, 2025
13		-	H348 -v-1
	9	+	Sponsors: Representative McNeely.
	10	+	Referred to:
	11	+
	12	+	DRH40215 -NIxf-13B
14	13		A BILL TO BE ENTITLED 1
15	14		AN ACT TO INCREASE THE CARRYFORWARD OF DEFERRED PROPERTY TAX ES 2
16	15		FOR PRESENT-USE VALUE PROPERTIES FROM THREE YEARS TO SIX YEARS , TO 3
17	16		CREATE A LOCAL GRANT PROGRAM USING THE EXCESS FUNDS CREATED 4
18	17		THEREBY TO PROVIDE GRANTS TO ELIGIBLE FARMERS, AND TO PROVIDE 5
19	18		THAT PRIOR TO ANNEXING CERTAIN PRESENT -USE VALUE PROPERTY, A CITY 6
20	19		MUST OBTAIN APPROVAL FROM THE BOARD OF COUNTY COMMISSIONERS . 7
21	20		The General Assembly of North Carolina enacts: 8
22	21		SECTION 1. G.S. 105-277.4 reads as rewritten: 9
23	22		"§ 105-277.4. Agricultural, horticultural and forestland – Application; appraisal at use 10
24	23		value; notice and appeal; deferred taxes. 11
25	24		… 12
26	25		(c) Deferred Taxes. – Land meeting the conditions for classification under 13
27	26		G.S. 105-277.3 must be taxed on the basis of the value of the land for its present use. The 14
28	27		difference between the taxes due on the present-use basis and the taxes that would have been 15
29	28		payable in the absence of this classification, together with any interest, penalties, or costs that 16
30	29		may accrue thereon, are a lien on the real property of the taxpayer as provided in G.S. 105-355(a). 17
31	30		The difference in taxes must be carried forward in the records of the taxing unit or units as 18
32	31		deferred taxes. The deferred taxes for the preceding three six fiscal years are due and payable in 19
33	32		accordance with G.S. 105-277.1F when the property loses its eligibility for deferral as a result of 20
34	33		a disqualifying event. event; provided, however, that the deferred taxes due and payable for each 21
35	34		year after the most recent preceding three fiscal years, and ending with the most recent preceding 22
36	35		sixth fiscal year, shall be deposited to the funds created by G.S. 153A-466 or G.S. 160A-499.11, 23
37	36		as appropriate. A disqualifying event occurs when the land fails to meet any condition or 24
38	37		requirement for classification or when an application is not approved. 25
39	38		…." 26
40	39		SECTION 2.(a) Article 23 of Chapter 153A of the General Statutes is amended by 27
41	40		adding a new section to read: 28
42	41		"§ 153A-466. Farmers' Assistance Grant Program. 29
43	42		(a) Definitions. – The following definitions apply in this section: 30
44	43		(1) Agricultural land. – As defined in G.S. 105-277.2. 31
45	44		(2) Board. – A board of county commissioners. 32
46		-	(3) County. – As defined in G.S. 153A-1. 33 General Assembly Of North Carolina Session 2025
47		-	Page 2 House Bill 348-First Edition
48		-	(4) Eligible farmer. – An owner of agricultural land, horticultural land, or 1
49		-	forestland that is taxed at its present-use value in accordance with 2
50		-	G.S. 105-277.4. 3
51		-	(5) Forestland. – As defined in G.S. 105-277.2. 4
52		-	(6) Fund. – A fund created by a board in accordance with subsection (b) of this 5
53		-	section. 6
54		-	(7) Horticultural land. – As defined in G.S. 105-277.2. 7
55		-	(b) Creation and Purpose of Fund. – The board of every county shall create a fund, in 8
56		-	accordance with the requirements of the Local Government Budget and Fiscal Control Act, as 9
57		-	amended, to provide grants to eligible farmers located within that county to support the continued 10
58		-	vitality of the State's unique and historic agricultural, horticultural, and forestry-related 11
59		-	economies, in accordance with this section. 12
60		-	(c) Source. – A fund created by a county under this section shall consist of the deferred 13
61		-	taxes paid to that county in accordance with G.S. 105-277.4(c). 14
62		-	(d) Application Required. – Grants from the fund may only be awarded to eligible farmers 15
63		-	that have submitted an application. A board shall use an application created by the Department 16
64		-	of Revenue for purposes of complying with this subsection. 17
65		-	(e) Administration. – The board of each county shall administer its respective fund and 18
66		-	shall develop guidelines providing for the administration of the fund. The guidelines shall include 19
67		-	the following provisions, which shall apply to each grant from the fund: 20
68		-	(1) Grants shall only be awarded on an application-by-application basis. 21
69		-	(2) No eligible farmer may receive more than one grant from the fund during a 22
70		-	budget year. 23
71		-	(3) Grant awards to an eligible farmer during a budget year shall be limited to the 24
72		-	lesser of (i) ten thousand dollars ($10,000) or (ii) ten percent (10%) of the then 25
73		-	available balance in the fund. 26
74		-	(4) An eligible farmer may not receive a total of more than five grants from the 27
75		-	fund. 28
76		-	(5) Grants shall only be awarded and used for purposes consistent with the growth 29
77		-	and sustainability of the State's agricultural, horticultural, or forestland 30
78		-	economies. 31
79		-	(6) Boards shall prioritize awarding grant funding under this section to eligible 32
80		-	farmers that demonstrate the greatest financial need." 33
81		-	SECTION 2.(b) Article 21 of Chapter 160A of the General Statutes is amended by 34
82		-	adding a new section to read: 35
83		-	"§ 160A-499.11. Farmers' Assistance Grant Program. 36
84		-	(a) Definitions. – The following definitions apply in this section: 37
85		-	(1) Agricultural land. – As defined in G.S. 105-277.2. 38
86		-	(2) City. – As defined in G.S. 160A-1. 39
87		-	(3) Council. – As defined in G.S. 160A-1. 40
88		-	(4) Eligible farmer. – An owner of agricultural land, horticultural land, or 41
89		-	forestland that is taxed at its present-use value in accordance with 42
90		-	G.S. 105-277.4. 43
91		-	(5) Forestland. – As defined in G.S. 105-277.2. 44
92		-	(6) Fund. – A fund created by a council in accordance with subsection (b) of this 45
93		-	section. 46
94		-	(7) Horticultural land. – As defined in G.S. 105-277.2. 47
95		-	(b) Creation and Purpose of Fund. – The council of every city shall create a fund, in 48
96		-	accordance with the requirements of the Local Government Budget and Fiscal Control Act, as 49
97		-	amended, to provide grants to eligible farmers located within that city to support the continued 50 General Assembly Of North Carolina Session 2025
98		-	House Bill 348-First Edition Page 3
99		-	vitality of the State's unique and historic agricultural, horticultural, and forestry-related 1
100		-	economies, in accordance with this section. 2
101		-	(c) Source. – A fund created by a city under this section shall consist of the deferred taxes 3
102		-	paid to that city in accordance with G.S. 105-277.4(c). 4
103		-	(d) Application Required. – Grants from the fund may only be awarded to eligible farmers 5
104		-	that have submitted an application. A council shall use an application created by the Department 6
105		-	of Revenue for purposes of complying with this subsection. 7
106		-	(e) Administration. – The council of each city shall administer its respective fund and 8
107		-	shall develop guidelines providing for the administration of the fund. The guidelines shall include 9
108		-	the following provisions, which shall apply to each grant from the fund: 10
109		-	(1) Grants shall only be awarded on an application-by-application basis. 11
110		-	(2) No eligible farmer may receive more than one grant from the fund during a 12
111		-	budget year. 13
112		-	(3) Grant awards to an eligible farmer during a budget year shall be limited to the 14
113		-	lesser of (i) ten thousand dollars ($10,000) or (ii) ten percent (10%) of the then 15
114		-	available balance in the fund. 16
115		-	(4) An eligible farmer may not receive a total of more than five grants from the 17
116		-	fund. 18
117		-	(5) Grants shall only be awarded and used for purposes consistent with the growth 19
118		-	and sustainability of the State's agricultural, horticultural, or forestland 20
119		-	economies. 21
120		-	(6) Councils shall prioritize awarding grant funding under this section to eligible 22
121		-	farmers that demonstrate the greatest financial need." 23
122		-	SECTION 3. No later than December 1, 2025, the Department of Revenue shall 24
123		-	create and provide counties and local governments with copies of the application required under 25
124		-	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 26
125		-	Department may consult with any other relevant State agency or local government for the purpose 27
126		-	of creating applications under this section. The applications created by the Department under this 28
127		-	section shall be uniform statewide and shall, at a minimum, provide for the following: 29
128		-	(1) Certification that the applicant is an eligible farmer as defined in 30
129		-	G.S. 153A-466 and G.S. 160A-499.11. 31
130		-	(2) Certification that any grant funding awarded under G.S. 153A-466 or 32
131		-	G.S. 160A-499.11 will be used by the applicant for purposes consistent with 33
132		-	the growth and sustainability of the State's agricultural, horticultural, or 34
133		-	forestland economies. 35
134		-	(3) Certification that the applicant intends to remain an eligible farmer for a 36
135		-	minimum of one year following receipt of each grant awarded to the applicant 37
136		-	under G.S. 153A-466 or G.S. 160A-499.11, as appropriate. 38
137		-	(4) A requirement that the applicant submit documentation detailing the 39
138		-	applicant's need for grant funding and the intended uses by the applicant of 40
139		-	any funds awarded. 41
140		-	(5) A requirement that the applicant provide the county or local government, as 42
141		-	appropriate, with any relevant financial or other documentation necessary to 43
142		-	determine the applicant's eligibility and appropriateness for a grant under 44
143		-	G.S. 153A-466 or G.S. 160A-499.11. 45
144		-	SECTION 4. G.S. 160A-58.2 reads as rewritten: 46
145		-	"§ 160A-58.2. Public hearing. 47
146		-	(a) Upon receipt of a petition for annexation under this Part, the city council shall cause 48
147		-	the city clerk to investigate the petition, and to certify the results of his investigation. If the clerk 49
148		-	certifies that upon investigation the petition appears to be valid, the council shall fix a date for a 50 General Assembly Of North Carolina Session 2025
149		-	Page 4 House Bill 348-First Edition
150		-	public hearing on the annexation. Notice of the hearing shall be published once at least 10 days 1
151		-	before the date of hearing. 2
152		-	(b) At the hearing, any person residing in or owning property in the area proposed for 3
153		-	annexation and any resident of the annexing city may appear and be heard on the questions of 4
154		-	the sufficiency of the petition and the desirability of the annexation. If the council then finds and 5
155		-	determines that (i) the area described in the petition meets all of the standards set out in 6
156		-	G.S. 160A-58.1(b), (ii) the petition bears the signatures of all of the owners of real property 7
157		-	within the area proposed for annexation (except those not required to sign by G.S. 160A-58.1(a)), 8
158		-	(iii) the petition is otherwise valid, and (iv) the public health, safety and welfare of the inhabitants 9
159		-	of the city and of the area proposed for annexation will be best served by the annexation, the 10
160		-	council may adopt an ordinance annexing the area described in the petition. The ordinance may 11
161		-	be made effective immediately or on any specified date within six months from the date of 12
162		-	passage. 13
163		-	(c) Notwithstanding the provisions of subsection (b) of this section, prior to the public 14
164		-	hearing, the city council shall direct the planning department to determine whether zoning the 15
165		-	area for residential use will increase the number of students attending public school in the county 16
166		-	in which the area is located to more than one hundred percent (100%) of the county's current 17
167		-	capacity if the area meets all of the following: 18
168		-	(1) Is agricultural land, forestland, or horticultural land, as defined in 19
169		-	G.S. 105-277.2. 20
170		-	(2) Is not contiguous to the city's primary corporate limits. 21
171		-	(3) Is not within the city's extraterritorial planning jurisdiction. 22
172		-	(d) If the planning department finds that zoning the area for residential use will increase 23
173		-	the number of students as provided in subsection (c) of this section, the board of county 24
174		-	commissioners with jurisdiction over the area must approve the annexation prior to the city 25
175		-	council adopting the annexation ordinance. If the board of county commissioners does not 26
176		-	approve the annexation, the city council may not proceed with the adoption of the annexation 27
177		-	ordinance unless it is willing to pay the county the amount necessary to come back into 28
178		-	compliance with school capacity." 29
179		-	SECTION 5. The extended carryforward of deferred property taxes under 30
180		-	G.S. 105-277.4(c), as amended by Section 1 of this act, becomes effective for taxes imposed for 31
181		-	taxable years beginning on or after July 1, 2026. Properties already having three or more years 32
182		-	of deferred taxes under G.S. 105-277.4(c) as of the date this act becomes law shall phase in to 33
183		-	the first year of the extended carryforward (year four of six), beginning July 1, 2026. Sections 2 34
184		-	and 3 of this act become effective upon the earlier of (i) the date this act becomes law or (ii) 35
185		-	October 1, 2025. Section 4 of this act becomes effective July 1, 2025, and applies to petitions for 36
186		-	annexation received on or after that date. Except as otherwise provided, this act is effective when 37
187		-	it becomes law. 38
	45	+	(3) County. – As defined in G.S. 153A-1. 33
	46	+	(4) Eligible farmer. – An owner of agricultural land, horticultural land, or 34
	47	+	forestland that is taxed at its present-use value in accordance with 35
	48	+	G.S. 105-277.4. 36
	49	+	H.B. 348
	50	+	Mar 10, 2025
	51	+	HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
	52	+	Page 2 DRH40215-NIxf-13B
	53	+	(5) Forestland. – As defined in G.S. 105-277.2. 1
	54	+	(6) Fund. – A fund created by a board in accordance with subsection (b) of this 2
	55	+	section. 3
	56	+	(7) Horticultural land. – As defined in G.S. 105-277.2. 4
	57	+	(b) Creation and Purpose of Fund. – The board of every county shall create a fund, in 5
	58	+	accordance with the requirements of the Local Government Budget and Fiscal Control Act, as 6
	59	+	amended, to provide grants to eligible farmers located within that county to support the continued 7
	60	+	vitality of the State's unique and historic agricultural, horticultural, and forestry-related 8
	61	+	economies, in accordance with this section. 9
	62	+	(c) Source. – A fund created by a county under this section shall consist of the deferred 10
	63	+	taxes paid to that county in accordance with G.S. 105-277.4(c). 11
	64	+	(d) Application Required. – Grants from the fund may only be awarded to eligible farmers 12
	65	+	that have submitted an application. A board shall use an application created by the Department 13
	66	+	of Revenue for purposes of complying with this subsection. 14
	67	+	(e) Administration. – The board of each county shall administer its respective fund and 15
	68	+	shall develop guidelines providing for the administration of the fund. The guidelines shall include 16
	69	+	the following provisions, which shall apply to each grant from the fund: 17
	70	+	(1) Grants shall only be awarded on an application-by-application basis. 18
	71	+	(2) No eligible farmer may receive more than one grant from the fund during a 19
	72	+	budget year. 20
	73	+	(3) Grant awards to an eligible farmer during a budget year shall be limited to the 21
	74	+	lesser of (i) ten thousand dollars ($10,000) or (ii) ten percent (10%) of the then 22
	75	+	available balance in the fund. 23
	76	+	(4) An eligible farmer may not receive a total of more than five grants from the 24
	77	+	fund. 25
	78	+	(5) Grants shall only be awarded and used for purposes consistent with the growth 26
	79	+	and sustainability of the State's agricultural, horticultural, or forestland 27
	80	+	economies. 28
	81	+	(6) Boards shall prioritize awarding grant funding under this section to eligible 29
	82	+	farmers that demonstrate the greatest financial need." 30
	83	+	SECTION 2.(b) Article 21 of Chapter 160A of the General Statutes is amended by 31
	84	+	adding a new section to read: 32
	85	+	"§ 160A-499.11. Farmers' Assistance Grant Program. 33
	86	+	(a) Definitions. – The following definitions apply in this section: 34
	87	+	(1) Agricultural land. – As defined in G.S. 105-277.2. 35
	88	+	(2) City. – As defined in G.S. 160A-1. 36
	89	+	(3) Council. – As defined in G.S. 160A-1. 37
	90	+	(4) Eligible farmer. – An owner of agricultural land, horticultural land, or 38
	91	+	forestland that is taxed at its present-use value in accordance with 39
	92	+	G.S. 105-277.4. 40
	93	+	(5) Forestland. – As defined in G.S. 105-277.2. 41
	94	+	(6) Fund. – A fund created by a council in accordance with subsection (b) of this 42
	95	+	section. 43
	96	+	(7) Horticultural land. – As defined in G.S. 105-277.2. 44
	97	+	(b) Creation and Purpose of Fund. – The council of every city shall create a fund, in 45
	98	+	accordance with the requirements of the Local Government Budget and Fiscal Control Act, as 46
	99	+	amended, to provide grants to eligible farmers located within that city to support the continued 47
	100	+	vitality of the State's unique and historic agricultural, horticultural, and forestry-related 48
	101	+	economies, in accordance with this section. 49
	102	+	(c) Source. – A fund created by a city under this section shall consist of the deferred taxes 50
	103	+	paid to that city in accordance with G.S. 105-277.4(c). 51 General Assembly Of North Carolina Session 2025
	104	+	DRH40215-NIxf-13B Page 3
	105	+	(d) Application Required. – Grants from the fund may only be awarded to eligible farmers 1
	106	+	that have submitted an application. A council shall use an application created by the Department 2
	107	+	of Revenue for purposes of complying with this subsection. 3
	108	+	(e) Administration. – The council of each city shall administer its respective fund and 4
	109	+	shall develop guidelines providing for the administration of the fund. The guidelines shall include 5
	110	+	the following provisions, which shall apply to each grant from the fund: 6
	111	+	(1) Grants shall only be awarded on an application-by-application basis. 7
	112	+	(2) No eligible farmer may receive more than one grant from the fund during a 8
	113	+	budget year. 9
	114	+	(3) Grant awards to an eligible farmer during a budget year shall be limited to the 10
	115	+	lesser of (i) ten thousand dollars ($10,000) or (ii) ten percent (10%) of the then 11
	116	+	available balance in the fund. 12
	117	+	(4) An eligible farmer may not receive a total of more than five grants from the 13
	118	+	fund. 14
	119	+	(5) Grants shall only be awarded and used for purposes consistent with the growth 15
	120	+	and sustainability of the State's agricultural, horticultural, or forestland 16
	121	+	economies. 17
	122	+	(6) Councils shall prioritize awarding grant funding under this section to eligible 18
	123	+	farmers that demonstrate the greatest financial need." 19
	124	+	SECTION 3. No later than December 1, 2025, the Department of Revenue shall 20
	125	+	create and provide counties and local governments with copies of the application required under 21
	126	+	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
	127	+	Department may consult with any other relevant State agency or local government for the purpose 23
	128	+	of creating applications under this section. The applications created by the Department under this 24
	129	+	section shall be uniform statewide and shall, at a minimum, provide for the following: 25
	130	+	(1) Certification that the applicant is an eligible farmer as defined in 26
	131	+	G.S. 153A-466 and G.S. 160A-499.11. 27
	132	+	(2) Certification that any grant funding awarded under G.S. 153A-466 or 28
	133	+	G.S. 160A-499.11 will be used by the applicant for purposes consistent with 29
	134	+	the growth and sustainability of the State's agricultural, horticultural, or 30
	135	+	forestland economies. 31
	136	+	(3) Certification that the applicant intends to remain an eligible farmer for a 32
	137	+	minimum of one year following receipt of each grant awarded to the applicant 33
	138	+	under G.S. 153A-466 or G.S. 160A-499.11, as appropriate. 34
	139	+	(4) A requirement that the applicant submit documentation detailing the 35
	140	+	applicant's need for grant funding and the intended uses by the applicant of 36
	141	+	any funds awarded. 37
	142	+	(5) A requirement that the applicant provide the county or local government, as 38
	143	+	appropriate, with any relevant financial or other documentation necessary to 39
	144	+	determine the applicant's eligibility and appropriateness for a grant under 40
	145	+	G.S. 153A-466 or G.S. 160A-499.11. 41
	146	+	SECTION 4. G.S. 160A-58.2 reads as rewritten: 42
	147	+	"§ 160A-58.2. Public hearing. 43
	148	+	(a) Upon receipt of a petition for annexation under this Part, the city council shall cause 44
	149	+	the city clerk to investigate the petition, and to certify the results of his investigation. If the clerk 45
	150	+	certifies that upon investigation the petition appears to be valid, the council shall fix a date for a 46
	151	+	public hearing on the annexation. Notice of the hearing shall be published once at least 10 days 47
	152	+	before the date of hearing. 48
	153	+	(b) At the hearing, any person residing in or owning property in the area proposed for 49
	154	+	annexation and any resident of the annexing city may appear and be heard on the questions of 50
	155	+	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
	156	+	Page 4 DRH40215-NIxf-13B
	157	+	determines that (i) the area described in the petition meets all of the standards set out in 1
	158	+	G.S. 160A-58.1(b), (ii) the petition bears the signatures of all of the owners of real property 2
	159	+	within the area proposed for annexation (except those not required to sign by G.S. 160A-58.1(a)), 3
	160	+	(iii) the petition is otherwise valid, and (iv) the public health, safety and welfare of the inhabitants 4
	161	+	of the city and of the area proposed for annexation will be best served by the annexation, the 5
	162	+	council may adopt an ordinance annexing the area described in the petition. The ordinance may 6
	163	+	be made effective immediately or on any specified date within six months from the date of 7
	164	+	passage. 8
	165	+	(c) Notwithstanding the provisions of subsection (b) of this section, prior to the public 9
	166	+	hearing, the city council shall direct the planning department to determine whether zoning the 10
	167	+	area for residential use will increase the number of students attending public school in the county 11
	168	+	in which the area is located to more than one hundred percent (100%) of the county's current 12
	169	+	capacity if the area meets all of the following: 13
	170	+	(1) Is agricultural land, forestland, or horticultural land, as defined in 14
	171	+	G.S. 105-277.2. 15
	172	+	(2) Is not contiguous to the city's primary corporate limits. 16
	173	+	(3) Is not within the city's extraterritorial planning jurisdiction. 17
	174	+	(d) If the planning department finds that zoning the area for residential use will increase 18
	175	+	the number of students as provided in subsection (c) of this section, the board of county 19
	176	+	commissioners with jurisdiction over the area must approve the annexation prior to the city 20
	177	+	council adopting the annexation ordinance. If the board of county commissioners does not 21
	178	+	approve the annexation, the city council may not proceed with the adoption of the annexation 22
	179	+	ordinance unless it is willing to pay the county the amount necessary to come back into 23
	180	+	compliance with school capacity." 24
	181	+	SECTION 5. The extended carryforward of deferred property taxes under 25
	182	+	G.S. 105-277.4(c), as amended by Section 1 of this act, becomes effective for taxes imposed for 26
	183	+	taxable years beginning on or after July 1, 2026. Properties already having three or more years 27
	184	+	of deferred taxes under G.S. 105-277.4(c) as of the date this act becomes law shall phase in to 28
	185	+	the first year of the extended carryforward (year four of six), beginning July 1, 2026. Sections 2 29
	186	+	and 3 of this act become effective upon the earlier of (i) the date this act becomes law or (ii) 30
	187	+	October 1, 2025. Section 4 of this act becomes effective July 1, 2025, and applies to petitions for 31
	188	+	annexation received on or after that date. Except as otherwise provided, this act is effective when 32
	189	+	it becomes law. 33