North Carolina (Summary)
Last Updated: March 2020
Tax Type: Current Use and Severance Tax
Description: Certain forestland and open-space land is designated as a special class of property under the authority of the North Carolina Constitution and, as such, is excluded from taxation or is otherwise specially treated.
Law: NC G.S. § 105-277
Objective: The purpose of this classification is to encourage proper forest management practices and to develop and maintain North Carolina's forest resources.
Principal Forest Property Tax Incentive Programs:
1. Forestry Present Use Valuation Program
Objective: This favorable tax treatment is designed to protect these property owners from being pressured by the property tax burden to convert their land from agricultural use to residential or commercial use. Keep "the family farm in the hands of the farming family."
Program Requirements
Min/Max Acreage: 20 acres or more
Min. Stocking Growth: N/A
Forest Management Plan: N/A
Duration of Enrollment: N/A
Penalties for Use Change: The difference between the tax based on a present-use valuation and the amount that would otherwise be due over previous three fiscal years, together with any accrued interest, penalties or costs, is carried as a lien on the property as deferred tax.
Program Administration
State: North Carolina Department of Revenue
County Tax Assessor: Landowner must file application with county tax assessor.
University: N/A
Landowner: N/A
Other: North Carolina Use-Value Advisory Board
2. Wildlife Conservation Land Program (WCLP)
Program Requirements
Min/Max Acreage: at least 20 acres of contiguous forestland
Min. Stocking Growth: N/A
Forest Management Plan: The land has to be managed under a written wildlife habitat conservation agreement with the North Carolina Wildlife Resources Commission (NCWRC).
Duration of Enrollment: N/A
Penalties for Use Change: The difference between the taxes that are due on wildlife conservation land and what would be due if the land were taxed on the basis of the true value of the property is a lien on the property. If the land loses its eligibility for the deferral as a result of a disqualifying event, the deferred taxes for the three preceding years are due and payable to the county.
Program Administration
State: North Carolina Department of Revenue; North Carolina Wildlife Resources Commission (NCWRC)
County Tax Assessor: Landowner must file application with county tax assessor.
University: N/A
Landowner: N/A
For a more in depth discussion of North Carolina property taxes click here!