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Bill Summary · HB 100

HB 100 — Expand Religious Property Tax Exemption (Summary)

Status: Reported Favorably (Reptd Fav)
Introduced: August 15, 2025
Subject area: Property tax exemptions; religion; real estate; taxation

Purpose

To broaden the property tax exemption available to religious organizations by allowing short‑term tax exemption for newly acquired undeveloped land that is contiguous to land already exempt and intended for future religious use.

Key provisions

  • Amends G.S. 105‑278.3(g) to add a new exception (paragraph (4)) to the “exclusive‑use” requirement for property exempt as used for religious purposes.
  • Allows undeveloped land acquired by an agency listed in subsection (c) (i.e., entities currently eligible for religious property tax exemption) that is contiguous to property already exempt to be exempt from taxation for up to five years if:
    • The undeveloped tract does not exceed 200% (two times) of the contiguous exempt land currently owned by the agency; and
    • The acquiring agency certifies that within five years it will either (A) begin to use the land wholly and exclusively for religious purposes or (B) begin development intended to result in property that will be wholly and exclusively used for religious purposes upon completion.
  • If the agency fails to meet the certification requirement within the five‑year period, the land becomes subject to “discovery” under G.S. 105‑312 (i.e., it may be identified and treated as taxable, potentially triggering back taxes).
  • Effective timing: the act states it applies to taxes imposed for taxable years beginning on or after July 1, 2026.

Who is affected

  • Primary beneficiaries: religious organizations and other agencies listed in G.S. 105‑278.3(c) that may seek to acquire adjacent undeveloped land for future expansion.
  • Local governments and tax authorities: potential short‑term reductions in property tax base and collections where the temporary exemption is claimed.
  • Taxpayers generally: potential indirect effects on local revenues and service funding depending on the scale of exemptions used.

Potential impacts and considerations

  • Fiscal: Local property tax revenues may decrease to the extent religious agencies claim the temporary exemption; the magnitude depends on how many agencies acquire qualifying undeveloped land and the value/size of that land.
  • Policy: Provides planning flexibility for religious organizations to acquire land for anticipated expansion without immediate tax liability, while the five‑year certification and discovery rules aim to limit speculative or indefinite tax avoidance.
  • Administrative: County tax assessors will need to track certification filings and monitor compliance to determine when previously exempt land should become taxable if development/use commitments are not met.

Procedural/timeline notes

  • Filed Aug 15, 2025; first read Aug 20, 2025; referred to the House Ways & Means committee. Status recorded as Reported Favorably.
  • If enacted as written, the exemption change governs taxable years starting July 1, 2026 (i.e., tax year 2026‑27 and later).

For statutory references: amends G.S. 105‑278.3(g) and uses G.S. 105‑312 for discovery enforcement.

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

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