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Bill Summary · HB 1058

Summary of North Carolina HB 1058 (2025 Session) – Walnut Creek Deannexation

Purpose and Intent

  • The bill aims to remove specific described property from the corporate limits of the Village of Walnut Creek and to restrict the village’s powers beyond its contiguous corporate boundaries.
  • In short, it deannexes designated parcels and limits future municipal powers outside the village’s geographic boundaries.

Key Provisions

Part I — Deannexation of Property

  • Sections 1.1 and 1.2 specify three parcels identified by Wayne County Tax Parcel Identification Numbers that are removed from Walnut Creek’s corporate limits:
    • Parcel A: Part of Parcel No. 3536159662, north of Dollard Town Road (State Road No. 1727). Approximately 1 acre.
    • Parcel B: Parcel No. 3536267029, including the right-of-way of Dollard Town Road (State Road No. 1727). Approximately 19 acres.
    • Parcel C: Parcel No. 3536370039. Approximately 23 acres (described as related to Goldsboro Milling Company, dated 1980).
  • Section 1.2 clarifies that the removal does not affect the validity of liens for ad valorem taxes or special assessments outstanding before the effective date; those liens may be collected/foreclosed as if the property remained within Walnut Creek for tax purposes.
  • Section 1.3 establishes an effective date: June 30, 2026. It also states that property in the described territory as of January 1, 2026 will no longer be subject to municipal taxes for taxable years beginning July 1, 2026 and after.

Part II — Limitation of Village Powers

  • Section 2.1 restricts the Village of Walnut Creek from exercising any powers granted to cities under Chapter 160D of the General Statutes beyond its contiguous corporate limits (i.e., beyond its current boundary).
  • Section 2.2 provides that the village’s development regulations and enforcement powers continue to apply in the deannexed area until the time specified in G.S. 160D-202(h) (a transitional provision for certain regulatory authority).
  • Section 2.3 preserves actions already taken by the village prior to the act’s effective date, ratifying and validating acquisitions, conveyances, transfers, or acceptances of real or personal property, as if the village had proper authority at the time of those actions.

Part III — Effective Date

  • Section 3 states the act becomes law upon enactment, with no separate delayed effective date beyond what is specified in Parts I and II.

Who Would Be Affected

  • The following parcels would be deannexed from Walnut Creek:
    • Approximately 1 acre (Parcel A)
    • Approximately 19 acres, including lawful right-of-way for Dollard Town Road (Parcel B)
    • Approximately 23 acres (Parcel C)
  • Property tax and assessments on the deannexed parcels would transition to other jurisdictional controls for tax purposes starting July 1, 2026, though tax liens outstanding prior to the effective date would remain enforceable as if still within Walnut Creek.
  • The Village of Walnut Creek would lose authority to exercise municipal powers under Chapter 160D beyond its contiguous boundaries, effective upon the act becoming law. Regulatory authority currently in place could persist in the deannexed area until the relevant transition period under state law.

Procedural and Timeline Notes

  • Effective date for deannexation and power limitations: June 30, 2026 (Section 1.3) and upon the act becoming law for other provisions (Section 3).
  • The act includes a ratification clause for past Village actions related to property acquisitions/conveyances before the effective date (Section 2.3).
  • The bill is sponsored by Representative Bell (with a co-sponsor listed as John Bell).

Potential Impacts to Consider

  • Tax implications: Municipal taxes for the affected parcels will cease in the taxable years beginning July 1, 2026, aligning with the deannexation.
  • Local governance: Reduced jurisdictional footprint for Walnut Creek; limited growth/regulatory authority beyond its former contiguous boundary.
  • Property interests: Existing liens and prior transactions are preserved and validated where already recorded, ensuring continuity of financial encumbrances and property records.

If you’d like, I can provide a side-by-side comparison with current law or create a brief Q&A for residents in the affected parcels.

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

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