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Bill Summary · HB 1041

Summary of HB 1041 (2025 Session, North Carolina)

Title

Deannex Certain Property from City of Morehead

Purpose and Intent

  • The bill proposes to remove specific parcels of land from the corporate limits of the City of Morehead City.
  • In effect, it shifts municipal boundaries to exclude listed properties from being within Morehead City for local governance and taxation purposes.

Key Provisions

  1. Deannexation of Specified Property

    • The following Carteret County parcels are removed from Morehead City’s corporate limits:
      • Parcel Identification Number (PIN) 638714442765000
      • PIN 638714440096000
      • PIN 638714444512000
    • The deannexation applies to the described territory identified by these PINs.

  2. Effect on Liens and Taxes

    • The bill clarifies that deannexation does not affect the validity of liens for ad valorem taxes or special assessments that were outstanding before the act’s effective date.
    • Such liens may still be collected or foreclosed upon after the effective date as if the properties remained within Morehead City’s corporate limits, for liens established prior to the effective date.

  3. Effective Date and Taximplications

    • The act becomes effective June 30, 2026.
    • For tax years beginning on or after July 1, 2026, property located in the deannexed territory is no longer subject to municipal taxes imposed by Morehead City.
    • The change in municipal taxation applies prospectively starting with the 2026-27 tax year.

Affected Parties and Implications

  • Property Owners in the Deannexed Parcels:

    • Will no longer be subject to municipal taxes from Morehead City beginning with the 2026-27 tax year.
    • Remain subject to county taxes and any applicable homestead or state taxes; reassessment and taxation will transition from municipal to county governance.

  • City of Morehead City:

    • Loses municipal authority and taxation over the deannexed parcels starting July 1, 2026 (tax year 2026-27).
    • Lien enforcement that existed prior to the effective date remains enforceable.

  • Carteret County/Taxing Authorities:

    • Will assume responsibility for property tax collection and any applicable county assessments for the deannexed parcels starting with the 2026-27 tax year.

Procedural and Timeline Details

  • Introduction/Action: Filed April 22, 2026.
  • Effective Date: June 30, 2026.
  • Tax Year Impact: Municipal taxation by Morehead City ends for the deannexed parcels beginning with the 2026-27 tax year (taxes imposed for taxable years starting July 1, 2026).

Notes

  • The bill is labeled as a local bill and specifically targets reconfiguring municipal boundaries related to Morehead City.
  • The deannexation does not affect outstanding liens that existed prior to the act’s effective date.

Compiled from official sources — confirm details with the bill’s official record.

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