NC H261

Creates a property tax deferral program for permanent residences that are rezoned for nonresidential uses after the home was built on residentially-zoned land.

Allows property owners to defer the portion of taxes representing the difference between the current zoned value and what the value would be if still zoned residential.

Deferred taxes become a lien on the property and are carried forward for up to three years, becoming due when the owner stops using the property as a permanent residence.

Permits deferral to continue through temporary absences, death of the owner if heirs use it as a residence, or divorce if the ex-spouse uses it as a residence.

Effective for tax years beginning on or after July 1, 2017, with applications filed through standard county assessor procedures.