Builders: Don’t Forget to Apply for Tax Exclusion

If you are holding in inventory for sale a single-family home, a townhouse, a duplex or land which you have improved for residential or commercial purposes, you are eligible to have the value of these improvements exempted from local property taxes. This exclusion, which can last up to three years if the house or land continues to be held for sale, also applies to single-family and duplex houses under construction or land currently being developed.

NCHBA successfully amended this law in 2021 to specifically include townhouses in this exemption. This action overrules a Department of Revenue opinion to the contrary which local governments had followed and restores the original legislative intent that townhouses be included.

For more information and details on this law, click this link

Don’t leave your money on the table!

Apply for this exemption by January 31.

FOR MORE INFORMATION CONTACT:

Mike Carpenter, mcarpenter@nchba.org

Tim Minton, tminton@nchba.org

or call NCHBA at (800) 662-7129