GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H D
HOUSE BILL DRH10265-NIf-15B
Short Title: Ag. PUV Conservation. (Public)
Sponsors: Representative Balkcom.
Referred to:
*DRH10265 -NIf-15B*
A BILL TO BE ENTITLED 1
AN ACT TO ALLOW PROPERTY OWNED BY CERTAIN CONSERVATION ENTITIES TO 2
BE TAXED AT PRESENT-USE VALUE. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. G.S. 105-277.2 reads as rewritten: 5
"§ 105-277.2. Agricultural, horticultural, and forestland – Definitions. 6
The following definitions apply in G.S. 105-277.3 through G.S. 105-277.7: 7
… 8
(1b) Conservation holder. – A nonprofit or private corporation that qualifies as a 9
"holder" pursuant to G.S. 121-35(2) and that (i) meets the definition of a 10
"charitable corporation" under G.S. 55A-1-40 and (ii) is organized to receive 11
and administer agricultural land, horticultural land, or forestland, for the 12
purpose of preserving the uses of such land in perpetuity. 13
… 14
(4) Individually owned. – Owned by one of the following: 15
… 16
f. A conservation holder. 17
…." 18
SECTION 2. G.S. 105-277.3 reads as rewritten: 19
"§ 105-277.3. Agricultural, horticultural, and forestland – Classifications. 20
(a) Classes Defined. – The following classes of property are designated special classes 21
of property under authority of Section 2(2) of Article V of the North Carolina Constitution and 22
must be appraised, assessed, and taxed as provided in G.S. 105-277.2 through G.S. 105-277.7. 23
… 24
(b2) Exceptions to Ownership Requirements. – Notwithstanding the provisions of 25
subsections (b) and (b1) of this section, land may qualify for classification in the hands of the 26
new owner if all of the conditions listed in either any subdivision of this subsection are met, even 27
if the new owner does not meet all of the ownership requirements of subsections (b) and (b1) of 28
this section with respect to the land. 29
(1) Continued use. – If the land qualifies for classification in the hands of the new 30
owner under the provisions of this subdivision, then any deferred taxes remain 31
a lien on the land under G.S. 105-277.4(c), the new owner becomes liable for 32
the deferred taxes, and the deferred taxes become payable if the land fails to 33
meet any other condition or requirement for classification. Land qualifies for 34
classification in the hands of the new owner if all of the following conditions 35
are met: 36
H.B. 647
Apr 1, 2025
HOUSE PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
Page 2 DRH10265-NIf-15B
a. The land was appraised at its present use present-use value at the time 1
title to the land passed to the new owner. 2
… 3
(3) Use by conservation holder. – If the land qualifies for classification in the 4
hands of the new owner under the provisions of this subdivision, then any 5
deferred taxes remain a lien on the land under G.S. 105-277.4(c), the new 6
owner becomes liable for the deferred taxes, and the deferred taxes become 7
payable if the land fails to meet any other condition or requirement for 8
classification. Land qualifies for classification in the hands of the new owner 9
if all of the following conditions are met: 10
a. The new owner is a conservation holder. 11
b. The land was appraised at its present-use value at the time title to the 12
land passed to the new owner. 13
c. The new owner uses the land for purposes consistent with the owner's 14
qualification as a conservation holder. 15
d. The new owner has timely filed an application as required by 16
G.S. 105-277.4(a) and has certified that the new owner accepts 17
liability for any deferred taxes and intends to use the land for purposes 18
consistent with sub-subdivision c. of this subdivision. 19
… 20
(d1) Conservation Easement Exception. – Property that is appraised at its present-use 21
value under G.S. 105-277.4(b) shall continue to qualify for appraisal, assessment, and taxation 22
as provided in G.S. 105-277.2 through G.S. 105-277.7 without regard to actual production or 23
income requirements of this section as long as (i) the property is subject to a qualifying 24
conservation easement that meets the requirements of G.S. 113A-235(a); and (ii) the taxpayer 25
received no more than seventy-five percent (75%) of the fair market value of the donated property 26
interest in compensation. Notwithstanding G.S. 105-277.3(b) and (b1), subsequent transfer of the 27
property does not extinguish its present-use value eligibility as long as the property remains 28
subject to a qualifying conservation easement. The exception provided in this subsection applies 29
only to that part of the property that is subject to the easement. 30
… 31
(d4) Conservation Holder Exception. – Property that is appraised at its present-use value 32
under G.S. 105-277.4(b) shall continue to qualify for appraisal, assessment, and taxation as 33
provided in G.S. 105-277.2 through G.S. 105-277.7 without regard to the actual production or 34
income requirements of this section as long as (i) the taxpayer remains a conservation holder and 35
(ii) the taxpayer continues to use the land for purposes consistent with its qualification as a 36
conservation holder. 37
…." 38
SECTION 3. This act is effective for taxes imposed for taxable years beginning on 39
or after July 1, 2026. 40