NC H418

Creates a property tax deferral program for permanent residences that are rezoned for nonresidential uses after the dwelling was constructed.

Allows property owners to defer taxes on the difference between the current zoned value and what the value would be if zoned for residential use.

Deferred taxes accumulate as a lien and become due when the owner ceases using the property as a permanent residence, with exceptions for temporary absences, death of owner with spousal/child succession, or divorce transfers to a spouse.

Requires county tax collectors to notify owners by September 1 each year of accumulated deferred taxes and interest; owners must notify the assessor when property loses eligibility or face penalties.

Applications may be filed during the regular listing period or after with good cause approval from the board of equalization and review; effective for tax years beginning July 1, 2015 or later.