The North Carolina legislature recently voted to lower the amount of property taxes homebuilders pay on homes in inventory waiting to be sold. Under the new law, the builder will only pay taxes based on the value of the land rather than paying property taxes based on the value of the stucture and improvements as well as the land. The impetus behind this change is that the new law should lower builders’ overall costs and generate more construction.
The builders would have to pay local property taxes only on the value of the land for up to three years as the home and lot is waiting to be sold. This law will apply to an individual who buys a lot to build on, as well as large commerical builders with hundreds of homes in inventory. Please contact our office if you have any questions or concerns about this change in the law.