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HB 173

Various Local Provisions III.

2025-2026 Session Introduced by Erin Paré

HB 173 freezes Wake County extraterritorial jurisdiction expansion through Dec 31, 2028, limiting municipal growth and fixing planning boundaries.

Ratified
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Bill Summary · HB 173

Summary — HB 173 (Various Local Provisions III.) — Ratified (SL 2025‑30)

Status: Ratified (Session Law 2025‑30)
Introduced: 2025 (filed and amended through 2025 legislative session)
Primary focus: local-government rules affecting extraterritorial jurisdiction, a municipal deannexation, and limits on commercial development moratoria

Purpose / Intent

HB 173 is a multipart, local‑focus bill that (1) temporarily restricts municipal expansion of extraterritorial jurisdiction (ETJ) in Wake County, (2) removes a specifically identified parcel from the City of Asheville corporate limits, and (3) tightens procedural limits on commercial development moratoria for municipalities (specifically addressing Town of Taylortown in the bill text). The intent is to (a) freeze ETJ boundaries in Wake County for a set period, (b) effect a local deannexation and associated tax changes, and (c) limit and standardize how municipalities impose short‑term commercial moratoria.

Key provisions

  1. Temporary limit on ETJ expansion in Wake County

    • Prohibits any municipality from expanding the territory over which it exercises ETJ powers in Wake County beyond the territory it exercised on January 1, 2025.
    • Applies only to Wake County.
    • Effective immediately when law takes effect and expires December 31, 2028.

  2. City of Asheville deannexation

    • Removes the parcel identified by Buncombe County Tax PIN 966773980500000 from Asheville’s corporate limits.
    • Section takes effect June 30, 2025.
    • Property in that territory as of January 1, 2025 is no longer subject to municipal taxes imposed for taxable years beginning on or after July 1, 2025.
    • Existing municipal liens (ad valorem taxes, special assessments) that accrued before the effective date remain valid and collectible/foreclosable as if the property remained in the city.

  3. Limits on commercial development moratoria (amendment to G.S. 160D‑107)

    • Adds heightened procedural requirements before a municipality may adopt a commercial development moratorium:
      • Requires four legislative hearings on the moratorium (two at the usual legislative hearing location on different dates and two at locations within the affected area), all four to occur within 30 days of the final hearing.
    • Moratorium duration and renewal limits:
      • Authorizes a single, 60‑day moratorium on commercial development within a municipality’s corporate limits or ETJ; generally prohibits renewal or extension except as provided in the statute.
      • No portion of an initial moratorium area may be subject to a subsequent moratorium unless at least five years have passed.
    • Exemptions:
      • Does not apply to projects with valid outstanding building permits, certain accepted permit applications, approved site‑specific vesting plans, projects with substantial good‑faith expenditures relying on prior approvals, or preliminary/final plats accepted for review before the moratorium hearing.
    • Required documentation and findings:
      • Moratorium ordinance must state problems leading to the moratorium, alternatives considered, approvals subject to moratorium, termination date and justification, and actions and schedule the local government will take during the moratorium.
    • Expedited judicial review:
      • Any aggrieved person may seek expedited review in the General Court of Justice to enjoin enforcement; local government bears burden to show compliance.

Who is affected

  • Municipal governments in Wake County (cannot expand ETJ during the effective period).
  • City of Asheville and owner(s) of the specified Buncombe County parcel (deannexation; tax status changes; liens remain collectible).
  • Municipalities considering commercial moratoria (notably Town of Taylortown as described) — developers, property owners, and applicants for permits in affected jurisdictions will face stricter procedural protections and time limits.
  • Residents and businesses in affected areas (planning, permitting, taxation, and local service boundaries may change).

Effective dates & procedural notes

  • ETJ freeze: effective when law takes effect; expires December 31, 2028.
  • Asheville deannexation: effective June 30, 2025; municipal taxes not due for taxable years beginning July 1, 2025 onward.
  • Moratoria amendments: effective when law takes effect (as part of the ratified session law).
  • Final status: Ratified as Session Law 2025‑30.

If you want, I can:
- Pull the exact statutory language added to G.S. 160D‑107 for quoting or agency guidance.
- Prepare a short checklist for municipalities and developers summarizing compliance steps under the new moratoria rules.

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

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