A BILL TO BE ENTITLED
AN ACT to simplify the collection of property taxes that are due on property owned by certain nonprofit homeowners' associations.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑277.8(a) is amended by adding a new subdivision to read:
"§ 105‑277.8.  Taxation of property of nonprofit homeowners' association.
(a)	The value of real and personal property owned by a nonprofit homeowners' association shall be included in the appraisals of property owned by members of the association and shall not be assessed against the association if all the following requirements are met:
(1)	All property owned by the association is held for the use, benefit, and enjoyment of all members of the association equally.
(2)	Each member of the association has an irrevocable right to use and enjoy, on an equal basis, all property owned by the association, subject to any restrictions imposed by the instruments conveying the right or the rules, regulations, or bylaws of the association.
(3)	Each irrevocable right to use and enjoy all property owned by the association is appurtenant to taxable real property owned by a member of the association.
(4)	All property owned by the association is contained entirely within the same taxing jurisdictions as is the taxable real property owned by the members of the association to which it is appurtenant.
The assessor may allocate the value of the association's property among the property of the association's members on any fair and reasonable basis."
SECTION 2.  This act is effective for taxes imposed for taxable years beginning on or after July 1, 2009.