• The city, county or developer may determine the amount of the PG based on 100% of the costs for labor and materials necessary for completion of the required improvements. Unit costs shall be utilized where applicable. The additional 25% allowed includes “all inflation and all costs of administration regardless of how such fees or charges are denominated.”
• The local jurisdiction may require the PG to be posted at plat recordation or some later time in its discretion and the developer shall have the option of posting one type of PG in lieu of multiple PGs (except for PGs for erosion or stormwater control which are separate).
In 2015, the North Carolina General Assembly enacted HB 168 (Exempt Builders’ Inventory) which allows a builder to claim an exemption from higher property taxes on land and houses held for sale by a builder to the extent that the increase is attributable to subdivision or other improvement. This law excludes from the annual tax bill any increased assessment arising from the improvements on any land or home held for sale.
Currently, a builder is required to file for this exemption every January in the tax office where the property is located. HB 492 would allow a builder to file for this property tax exclusion once, instead of an annual filing. Under this bill, once the exemption is initially filed, it is good for up to three years on residential projects (both land and homes) and up to five years on commercial projects (land only) or until the property is sold.
This annual legislation is the fifth building code regulatory reform bill since 2013. The previous four bills were enacted and have resulted in important improvements to the construction and inspection systems as well as producing significant cost savings. This year’s bill addresses a wide range of issues which builders, and others, have faced during the development and construction phases.
Following a Supreme Court opinion striking down most water and wastewater system development fees across the state, NCHBA worked with local governments to enact consensus legislation in 2015 to put into place a system whereby system development fees could be legally imposed but only subject to appropriate safeguards. The bill would clarify the time of collection of after the local government has followed the proper steps to calculate a system development fee. Projects in jurisdictions where water and sewer lines were installed or tap fees were paid prior to October 1, 2017 and did not previously have authorization to enact a capacity fee are exempt from the fee. This bill was not opposed in the House.