Builders Inventory Exemption

The Builders Inventory Exemption program requires an annual application to be filed with the County Assessor during the annual listing period which ends January 31 each year.

Definition of Builder


"Builder" means a taxpayer engaged in the business of buying real property, making improvements to it, and then reselling it.

Types of Property Eligible for Exemption


  • Residential Property - Increase in value of real property due to:
    • Land subdivided by a builder
    • Non-building improvements made by a builder
    • A new single-family residence or a duplex
  • Commercial Property - Increase in value of real property due to:
    • Land subdivided by a builder
    • Non-building improvements made by a builder
Please note: Commercial buildings are not eligible for the exemption.

Time Limitation for Exemption


  • Residential - 3 years beginning on the January 1 date that the property was first required to be listed by the builder
  • Commercial - 5 years beginning on the January 1 date that the property was first required to be listed by the builder

Disqualifications


Events that will disqualify the property from the exemption are as follows:
  • Residential:
    • Used for commercial purposes
    • Occupied by a tenant
    • Sale of the property
    • Failure to file an annual application
  • Commercial:
    • Issuance of building permit
    • Sale of property
    • Failure to file an annual application

NCGS 105-285


NCGS 105-285 applies to this exemption, and state: (paraphrased)

When real property that was exempt as of January 1 changes status prior to July 1, it becomes taxable for the entire fiscal year that begins on July 1.