AN ACT removing certain described property from the corporate limits of the CITy of Southport, removing certain described property from the corporate limits and the extraterritorial jurisdiction of the Town of Yadkinville, removing certain described property from the corporate limits of THE CITY OF KANNAPOLIS, removing certain described PROPERTY from the extraterritorial jurisdiction of the town of sunset beach, and removing the cap on satellite annexations for the town of east Spencer.

The General Assembly of North Carolina enacts:

part i. city of southport deannexation
SECTION 1.(a)  The following described property, identified by Brunswick County Tax Office Parcel Number, is removed from the corporate limits of the City of Southport: 221MB015, 221MB020, and 221MB02001.
SECTION 1.(b)  This section has no effect upon the validity of any liens of the City of Southport for ad valorem taxes or special assessments outstanding before the effective date of this section. Such liens may be collected or foreclosed upon after the effective date of this section as though the property were still within the corporate limits of the City of Southport.
SECTION 1.(c)  This section becomes effective June 30, 2026. Property in the territory described in subsection (a) of this section as of January 1, 2026, is no longer subject to municipal taxes for taxes imposed for taxable years beginning on or after July 1, 2026.

part ii. town of yadkinville deannexation/etj
SECTION 2.(a)  The following described property, identified by Yadkin County Tax Property Identification Number, is removed from the corporate limits and the extraterritorial jurisdiction of the Town of Yadkinville: 5816103271.
SECTION 2.(b)  This section has no effect upon the validity of any liens of the Town of Yadkinville for ad valorem taxes or special assessments outstanding before the effective date of this section. Such liens may be collected or foreclosed upon after the effective date of this section as though the property were still within the corporate limits of the Town of Yadkinville.
SECTION 2.(c)  This section becomes effective June 30, 2026. Property in the territory described in subsection (a) of this section as of January 1, 2026, is no longer subject to municipal taxes for taxes imposed for taxable years beginning on or after July 1, 2026.

part iii. city of kannapolis deannexation
SECTION 3.(a)  The following described properties, identified by Cabarrus County Tax Property Identification Numbers, are removed from the corporate limits of the City of Kannapolis: 46928542120000 and 46927593330000.
SECTION 3.(b)  This section has no effect upon the validity of any liens of the City of Kannapolis for ad valorem taxes or special assessments outstanding before the effective date of this section. Such liens may be collected or foreclosed upon after the effective date of this section as though the property were still within the corporate limits of the City of Kannapolis.
SECTION 3.(c)  This section becomes effective June 30, 2026. Property in the territory described in subsection (a) of this section as of January 1, 2026, is no longer subject to municipal taxes for taxes imposed for taxable years beginning on or after July 1, 2026.

part iv. Sunset Beach ETJ
SECTION 4.(a)  Notwithstanding G.S. 160D‑202 or any other provision of law, the Town of Sunset Beach shall not exercise any powers of extraterritorial jurisdiction as provided in Article 2 of Chapter 160D of the General Statutes or its predecessor, Article 19 of Chapter 160A of the General Statutes, over the territory identified by Brunswick County Parcel Identification Number 2273A155.
SECTION 4.(b)  The relinquishment of jurisdiction by the Town of Sunset Beach over the area identified in subsection (a) of this section shall become effective on the date this act becomes law; provided, however, the Town of Sunset Beach's development regulations and powers of enforcement shall remain in effect in that area until the time provided in G.S. 160D‑202(h).

Part VI. Town of East Spencer Satellite Annexation Cap Removal
SECTION 6.  G.S. 160A‑58.1(b), as amended by Section 1 of S.L. 2025‑14, reads as rewritten:
"(b)	A noncontiguous area proposed for annexation must meet all of the following standards:
…
(5)	The area within the proposed satellite corporate limits, when added to the area within all other satellite corporate limits, may not exceed ten percent (10%) of the area within the primary corporate limits of the annexing city.
This subdivision does not apply to the Cities of Archdale, Asheboro, Belmont, Claremont, Concord, Conover, Durham, Elizabeth City, Gastonia, Greenville, Hickory, Kannapolis, Kings Mountain, Locust, Lowell, Marion, Mount Airy, Mount Holly, New Bern, Newton, Oxford, Randleman, Roanoke Rapids, Rockingham, Saluda, Sanford, Salisbury, Shelby, Southport, Statesville, and Washington and the Towns of Ahoskie, Angier, Apex, Ayden, Belville, Benson, Bladenboro, Bridgeton, Bunn, Burgaw, Calabash, Carthage, Catawba, China Grove, Clayton, Columbia, Columbus, Cramerton, Creswell, Dallas, Dobson, East Spencer, Four Oaks, Franklin, Franklinton, Franklinville, Fuquay‑Varina, Garner, Godwin, Goldston, Granite Quarry, Green Level, Grimesland, Harrisburg, Holly Ridge, Holly Springs, Hookerton, Hope Mills, Huntersville, Jamestown, Kenansville, Kenly, Knightdale, Landis, Laurel Park, Liberty, Lillington, Louisburg, Madison, Maggie Valley, Maiden, Mayodan, Maysville, Middlesex, Midland, Mocksville, Morrisville, Mount Pleasant, Nashville, North Wilkesboro, Norwood, Oak Island, Oakboro, Ocean Isle Beach, Pembroke, Pine Level, Pollocksville, Princeton, Ramseur, Ranlo, Richlands, Rockwell, Rolesville, Rutherfordton, Shallotte, Siler City, Smithfield, Spencer, Spring Lake, Stanley, Stem, Stovall, Surf City, Swansboro, Taylorsville, Troutman, Troy, Vass, Wallace, Warsaw, Watha, Waynesville, Weldon, Wendell, West Jefferson, Wilson's Mills, Windsor, Wingate, Yadkinville, Youngsville, and Zebulon."

part ViII. Effective date
SECTION 8.  Except as otherwise provided, this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 7th day of May, 2026.

	s/	 Rachel Hunt
	 President of the Senate

	s/	 Destin Hall
	 Speaker of the House of Representatives