North Carolina § 105-278 - 6. Real and personal property used for charitable purposes.

§ 105-278. 6. Real and personal property used for charitable purposes.

Real and personal property owned by: A Young Men's Christian Association or similar organization; A home for the aged, sick, or infirm; An orphanage or similar home; A Society for the Prevention of Cruelty to Animals; A reformatory or correctional institution; A monastery, convent, or nunnery; A nonprofit, life-saving, first aid, or rescue squad organization; A nonprofit organization providing housing for individuals or families with low or moderate incomes A charitable purpose within the meaning of this section is one that has humane and philanthropic objectives; it is an activity that benefits humanity or a significant rather than limited segment of the community without expectation of pecuniary profit or reward. The humane treatment of animals is also a charitable purpose. The fact that a building or facility is incidentally available to and patronized by the general public, so long as there is no material amount of business or patronage with the general public, shall not defeat the exemption granted by this section. Notwithstanding the exclusive-use requirements of this section, if part of a property that otherwise meets the section's requirements is used for a purpose that would require exemption under subsection (a), above, if the entire property were so used, the valuation of the part so used shall be exempted from taxation. Real property held by an organization described in subdivision (a)(8) for a charitable purpose under this section as a future site for housing for individuals or families with low or moderate incomes may be classified under this section for no more than 10 years. The taxes that would otherwise be due on real property exempt under this subsection shall be a lien on the property as provided in G.S. 105-355(a). The taxes shall be carried forward in the records of the taxing unit as deferred taxes. The deferred taxes are due and payable in accordance with G.S. 105-277.1F when the property loses its eligibility for deferral as a result of a disqualifying event. A disqualifying event occurs when the property was not used for low- or moderate-income housing within 10 years from the first day of the fiscal year the property was classified under this subsection. In addition to the provisions in G.S. 105-277.1F, all liens arising under this subdivision are extinguished when the property is used for low- or moderate-income housing within the time period allowed under this subsection. shall be exempted from taxation if: (i) As to real property, it is actually and exclusively occupied and used, and as to personal property, it is entirely and completely used, by the owner for charitable purposes; and (ii) the owner is not organized or operated for profit. History (1973, c. 695, s. 4; 1975, c. 808; 1993, c. 230, s. 1; 2008-35, s. 2.6; 2009-481, s. 2; 2010-95, s. 18; 2011-368, s. 1.) Editor's Note. - Session Laws 2008-107, s. 28.11(h), provides, in part, that the Revisor of Statutes is authorized to correct any reference or citation in the General Statutes to any portion of Session Laws 2008-35 that is recodified or amended by Session Laws 2008-107, s. 28.11(h) by deleting incorrect references and substituting correct references. The reference to G.S. 105-277.1 C in subsection (e) has been changed to G.S. 105-277.1 F. Session Laws 2008-107, s. 1.2, provides: "This act shall be known as 'The Current Operations and Capital Improvements Appropriations Act of 2008'." Session Laws 2008-107, s. 30.3, provides: "Except for statutory changes or other provisions that clearly indicate an intention to have effects beyond the 2008-2009 fiscal year, the textual provisions of this act apply only to funds appropriated for, and activities occurring during, the 2008-2009 fiscal year." Session Laws 2008-107, s. 30.5 is a severability clause. Effect of Amendments. - Session Laws 2008-35, s. 2.6, effective for taxes imposed for taxable years beginning on or after July 1, 2008, rewrote subsection (e). Session Laws 2009-481, s. 2, effective for taxes imposed for taxable years beginning on or after July 1, 2010, substituted "when the property was not used for low- or moderate-income housing within" for "when the organization fails to construct low- or moderate-income housing on the site within" in the last sentence of subsection (e). Session Laws 2010-95, s. 18, effective July 17, 2010, added the last sentence in subsection (e). Session Laws 2011-368, s. 1, effective for taxes imposed for taxable years beginning on or after July 1, 2011, twice substituted "10 years" for "five years" in subsection (e). Legal Periodicals. - For a symposium on historic preservation which includes a discussion of relevant North Carolina law, see 12 Wake Forest L. Rev. 9 (1976).