AN ACT removing the cap on satellite annexations for the towns of bailey and weaverville and the city of cherryville; removing certain described property from the corporate limits of the cities of morehead city and washington, the towns of kernersville, red oak, vass, and waynesville, and the village of walnut creek; and limiting certain powers of the village of walnut creek.

The General Assembly of North Carolina enacts:

TOWNS OF BAILEY AND WEAVERVILLE/CITY OF CHERRYVILLE SATELLITE ANNEXATION CAP REMOVAL
SECTION 1.  G.S. 160A‑58.1(b) 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, Cherryville, 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, Bailey, Belville, Benson, Bladenboro, Bridgeton, Bunn, Burgaw, Calabash, Carthage, Catawba, China Grove, Clayton, Columbia, Columbus, Cramerton, Creswell, Dallas, Dobson, 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, Weaverville, Weldon, Wendell, West Jefferson, Wilson's Mills, Windsor, Wingate, Yadkinville, Youngsville, and Zebulon."

CITY OF MOREHEAD CITY DEANNEXATION
SECTION 2.(a)  The following described property, identified by Carteret County Parcel Identification Number, is removed from the corporate limits of the City of Morehead City: 638714442765000, 638714440096000, and 638714444512000.
SECTION 2.(b)  This section has no effect upon the validity of any liens to the City of Morehead City 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 Morehead City.
SECTION 2.(c)  This section becomes effective June 30, 2026. Property in the territory described in 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.

CITY OF WASHINGTON DEANNEXATION
SECTION 3.(a)  The following described property is removed from the corporate limits of the City of Washington:
Lying and being in the City of Washington, County of Beaufort, State of North Carolina and more particularly described as follows:
Beginning at a Control Corner labeled B1 on the map referred to below. Said control corner having North Carolina Grid Coordinates of N=666,344.07 and E=2,582,231.42 and running thence from said beginning point so located the following courses and distances, North 35° 46' 30" East 128.65 feet to a point, thence North 84° 10' 28" East 59.63 feet to a point, thence South 63° 47' 08" East 56.33 feet to a point, thence North 19° 21' 41" East 223.92 feet to a point, thence North 00° 55' 13" East 414.62 feet to a point, thence North 19° 42' 31" West 48.15 feet to a point, thence North 55° 10' 39" West 44.75 feet to a point, thence North 87° 30' 41" West 288.92 feet to a point, thence North 27° 03' 31" West 1,036.94 feet to a point, thence North 67° 05' 44" East 131.14 feet to a point, thence South 35° 17' 53" East 3.86 feet to a point, thence North 49° 51' 07" East 2.25 feet to a point, thence North 47° 57' 16" West 295.08 feet to a point, thence North 63° 37' 38" East 14.47 feet to a point in the Southern right‑of‑way line of Airport Road, thence with the Southern right‑of‑way line of Airport Road, South 49° 49' 13" East 121.22 feet to a point, thence South 51° 00' 29" East 101.41 feet to a point, thence South 56° 21' 17" East 76.97 feet to a point, thence South 61° 06' 31" East 92.61 feet to a point, thence South 66° 19' 34" East 83.55 feet to a point, thence South 71° 11' 39" East 88.68 feet to a point, thence South 73° 28' 33" East 152.89 feet to a point, thence South 73° 44' 12" East 128.90 feet to a point, thence South 73° 50' 07" East 148.39 feet to a point, thence South 73° 42' 27" East 120.39 feet to a point, thence South 73° 37' 54" East 100.97 feet to a point, thence South 28° 19' 06" East 83.84 feet to a point in the Western line of Market Street Extension, thence South 09° 24' 28" West 319.41 feet to a point, thence South 03° 03' 58" West 1,044.50 feet to a point, thence South 65° 06' 55" West 2.27 feet to a point, thence South 65° 06' 55" West 392.70 feet to a point indicated by the letter A1 on that certain survey referred to below, thence North 24° 53' 05" West 111.53 feet to the Control Corner labeled B1 on the survey referred to below and this being all of that 18.93 acre tract or parcel of land as shown on that certain survey by Sorrell Land Surveying, Inc., dated May 2, 2023. Reference is herein made to survey for a more complete and adequate description of the subject property.
SECTION 3.(b)  This section has no effect upon the validity of any liens of the City of Washington 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 Washington.
SECTION 3.(c)  This section becomes effective June 30, 2026. Property in the territory described in 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.

TOWN OF KERNERSVILLE DEANNEXATION
SECTION 4.(a)  The following described property, identified by Forsyth County Tax Property Identification Number, is removed from the corporate limits of the Town of Kernersville: 6896‑04‑9921.
SECTION 4.(b)  This section has no effect upon the validity of any liens of the Town of Kernersville 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 Kernersville.
SECTION 4.(c)  This section becomes effective June 30, 2026. Property in the territory described in 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.

TOWN OF RED OAK DEANNEXATION
SECTION 5.(a)  The following described property, identified by Nash County Parcel Identification Numbers, is removed from the corporate limits of the Town of Red Oak: 382110465092 and 382115547627.
SECTION 5.(b)  This section has no effect upon the validity of any liens of the Town of Red Oak 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 Red Oak.
SECTION 5.(c)  This section becomes effective June 30, 2026. Property in the territory described in 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.

TOWN OF VASS DEANNEXATION
SECTION 6.(a)  The following described property, identified by Moore County Tax Property Identification Numbers, is removed from the corporate limits of the Town of Vass: 950300365918, 950300363850, 950300362794, and 950300361693.
SECTION 6.(b)  This section has no effect upon the validity of any liens of the Town of Vass 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 Vass.
SECTION 6.(c)  This section becomes effective June 30, 2026. Property in the territory described in 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.

TOWN OF WAYNESVILLE DEANNEXATION
SECTION 7.(a)  The property identified by Haywood County Parcel Identification Number 8604‑93‑8795, also known as 86 Magellan Drive, is removed from the corporate limits of the Town of Waynesville.
SECTION 7.(b)  This section has no effect on the validity of any liens of the Town of Waynesville 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 Waynesville.
SECTION 7.(c)  This section becomes effective June 30, 2026. Property in the territory described in 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.

VILLAGE OF WALNUT CREEK DEANNEXATION
SECTION 8.(a)  The following described property, as identified by Wayne County Tax Parcel Identification Numbers, is removed from the corporate limits of the Village of Walnut Creek:
PARCEL A:
The portion of Parcel No. 3536159662 lying north of Dollard Town Road (State Road No. 1727), being approximately 1 acre and more particularly described in the deed to Diamond Poultry Farms, Inc. (now Sleepy Creek Farms, Inc.), dated November 7, 1961, and recorded in Deed Book 559, Page 134, of the Wayne County Registry.
PARCEL B:
Parcel No. 3536267029, including the right‑of‑way of Dollard Town Road (State Road No. 1727), being approximately 19 acres and more particularly described in the deed to Sleepy Creek Farms, Inc., dated August 26, 1996, and recorded in Deed Book 1552, Page 890, of the Wayne County Registry.
PARCEL C:
Parcel No. 3536370039, being approximately 23 acres and more particularly described in the deed to Goldsboro Milling Company, dated September 9, 1980, and recorded in Book 993, Page 280, of the Wayne County Registry.
SECTION 8.(b)  This section has no effect upon the validity of any liens of the Village of Walnut Creek 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 Village of Walnut Creek.
SECTION 8.(c)  This section becomes effective June 30, 2026. Property in the territory described in 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.

LIMIT CERTAIN POWERS OF THE VILLAGE OF WALNUT CREEK
SECTION 9.(a)  Chapter 55 of the 1977 Session Laws is repealed.
SECTION 9.(b)  Notwithstanding the provisions of G.S. 160D‑202, or any other provision of law, the Village of Walnut Creek shall not exercise any powers granted to cities in Chapter 160D of the General Statutes in any area beyond its contiguous corporate limits.
SECTION 9.(c)  The relinquishment of jurisdiction by the Village of Walnut Creek over the area beyond its contiguous corporate limits shall become effective on the date this section becomes law; provided, however, the Village's development regulations and powers of enforcement shall remain in effect in that area until the time provided in G.S. 160D‑202(h).
SECTION 9.(d)  Notwithstanding subsection (c) of this section or any other provision of law to the contrary, any acquisition, conveyance, transfer, or acceptance of real property or interest in real or personal property by the Village of Walnut Creek occurring prior to the effective date of this section is hereby ratified, validated, confirmed, and approved in all respects as if the Village of Walnut Creek had possessed full legal authority to undertake such action at the time it occurred.

EFFECTIVE DATE
SECTION 10.  Except as otherwise provided, this act is effective when it becomes law.
In the General Assembly read three times and ratified this the 25th day of June, 2026.

	s/	 Rachel Hunt
	 President of the Senate

	s/	 John R. Bell, IV
	 Presiding Officer of the House of Representatives