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North CarolinaSB 6952025-2026 SessionSenate

AN ACT TO GROW THE PROPERTY TAX BASE OF UNITS OF LOCAL GOVERNMENT BY FACILITATING PRIVATE DEVELOPER INVOLVEMENT IN CERTAIN PROJECT DEVELOPMENTS.

Sponsored By: Todd Johnson (Republican), Michael A. Lazzara (Republican)

Signed by Governor

CONSTRUCTIONCOUNTIESCOUNTY COMMISSIONERSECONOMIC DEVELOPMENTLOCAL GOVERNMENTPRESENTEDPROPERTYPUBLICRATIFIEDREAL ESTATETAXATIONTAXES, PROPERTYCHAPTEREDCONSTRUCTION INDUSTRY

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 1 costs, 1 mixed.

90% property tax break for builders

Starting with tax years that begin on or after July 1, 2027, builders get a 90% property tax exclusion on qualified new development in an approved incentive district. Only land and a new, unoccupied improvement count; remodeling or rehab does not. Only 10% of the appraised value is taxed. The break lasts up to 10 years or until you sell. You must apply under G.S. 105-282.1.

No double-dipping on property tax breaks

Starting with tax years that begin on or after July 1, 2027, a property cannot claim both the new builder exclusion and the relief under G.S. 105-277.02. You must choose one tax break for a given property.

Limits and approvals for incentive districts

A local government may place no more than 5% of its land inside incentive districts. A county cannot include land inside a municipality unless that municipality agrees by resolution. Before a municipality approves a district, it must mail notice to the county board and certify the mailing date. The county may disapprove by resolution within 28 days after mailing. If the county does not act in 28 days, the municipality may approve the district.

Sponsors & Cosponsors

Sponsors

  • Todd Johnson

    Republican • Senate

  • Michael A. Lazzara

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 309 • No: 1

Senate vote • 6/16/2026

SB 695: Incent Development Finance District Funding.

Yes: 45 • No: 0 • Other: 5

House vote • 6/10/2026

SB 695: Incentive Development Finance District Funding.

Yes: 110 • No: 1 • Other: 8

House vote • 6/10/2026

SB 695: Incentive Development Finance District Funding.

Yes: 112 • No: 0 • Other: 8

Senate vote • 6/19/2025

SB 695: Incent Development Finance District Funding.

Yes: 42 • No: 0 • Other: 8

Actions Timeline

  1. Ch. SL 2026-12

    6/22/2026Senate

  2. Signed by Gov. 6/22/2026

    6/22/2026Senate

  3. Pres. To Gov. 6/18/2026

    6/18/2026Senate

  4. Ratified

    6/17/2026Senate

  5. Ordered Enrolled

    6/16/2026Senate

  6. Concurred In H Com Sub

    6/16/2026Senate

  7. Placed On Cal For 06/16/2026

    6/15/2026Senate

  8. Withdrawn From Com

    6/15/2026Senate

  9. Ref To Com On Rules and Operations of the Senate

    6/11/2026Senate

  10. Regular Message Received For Concurrence in H Com Sub

    6/11/2026Senate

  11. Regular Message Sent To Senate

    6/11/2026House

  12. Ordered Engrossed

    6/10/2026House

  13. Passed 3rd Reading

    6/10/2026House

  14. Passed 2nd Reading

    6/10/2026House

  15. Amend Adopted A1

    6/10/2026House

  16. Placed On Cal For 06/10/2026

    6/9/2026House

  17. Cal Pursuant Rule 36(b)

    6/9/2026House

  18. Reptd Fav

    6/9/2026House

  19. Re-ref Com On Rules, Calendar, and Operations of the House

    6/9/2026House

  20. Reptd Fav Com Substitute

    6/9/2026House

  21. Re-ref Com On Finance

    6/25/2025House

  22. Reptd Fav

    6/25/2025House

  23. Re-ref to the Com on State and Local Government, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House

    6/24/2025House

  24. Withdrawn From Com

    6/24/2025House

  25. Ref To Com On Rules, Calendar, and Operations of the House

    6/19/2025House

Bill Text

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