Real Property Tax Exemptions or Exclusions

NC General Statutes allows for property tax exemptions if they meet the requirements. Some types of exempt property may include, but are not limited to:

  • Property used for religious purposes
  • Property set aside for burial purposes
  • Property used for educational, scientific or literary purposes
  • Property used for charitable purposes
  • Builder's exemption is for certain property held for sale by a builder.
  • Looking for personal type exemptions? Exemptions such as elderly, disabled or veterans exemptions or exclusions?  Visit Real and Personal Property Tax Exclusions 

To apply for exemptions, an application must be filed with the Revaluation department. File during the regular listing period, which takes place each January.

Application Deadline: January 31

Exemptions may be either non-deferred or deferred.

Non-Deferred Tax Exemptions. These do not normally result in the creation of a tax bill when an exemption is removed. Some examples of non-deferred type exemptions are:

  • religious
  • educational
  • charitable
  • burial
  • home owners association

Deferred Tax Exemptions. These result in creation of prior year tax bills when a property loses exemption. Some examples of deferred type exemptions are:

  • property held as future site for low income housing
  • site infrastructure
  • certain historic
  • working waterfront

To apply for either non-deferred or deferred tax exemption, submit application form AV-10. Submit the completed form to our office. Include any applicable documentation by January 31.

Builders Exclusion

Application Deadline: January 31

A builder is a taxpayer engaged in the business of buying real property. They resell the property after making improvements. Certain property held for sale by a builder is a special class of property. The property can be residential or commercial. This property is taxed at a reduced rate.

To apply for the builders exclusion, submit application form AV-65.

Real Property Exemptions - Non-Deferred

The following are types of non-deferment exemptions available. These exemptions do not result in the creation of deferred taxes. Taxes for prior years may be recoverable. This would occur if later it is determined the property did not qualify. This qualification would be for the prior years exemption.

  • Pollution abatement / recycling
  • Veterans organizations
  • Lodges, fraternal and civic purposes
  • Goodwill Industries
  • Solar energy electric system
  • Charter school property
  • Brownfields
  • Religious purposes
  • Educational
  • Religious educational
  • Home for the aged, sick or infirm
  • YMCA, SPCA, VFD or orphanage
  • Other charitable or educational
  • Charitable hospitals
  • Home owners association

Real Property Exemptions - Deferred

The following tax deferred exemption types are available. These exemptions result in the creation of deferred taxes. These taxes can become immediately due and payable with interest. This occurs if the property loses eligibility. The number of years for which deferred taxes become due varies by the program type.

  • Nonprofit corporation or association organization to receive and administer lands for conservation purposes
  • Historic district property held as a future site of a historic structure
  • Working waterfront property
  • Site infrastructure land
  • Historic property
  • Nonprofit property held as a future site for low income or moderate income housing

Builders Exclusion

Follow this important information regarding the application and exclusion:

  1. Fill out the application in its entirety
  2. Return the application by January 31
  3. The property must be for sale and not used as a rental or model home
  4. Ownership is determined as of January 1
  5. If the property has the exclusion and is sold prior to July 1, the exclusion gets removed. The property gets listed and appraised for taxes as of January 1. This is for the year preceding the acquisition.