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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 34285
Experience:  16 years real estate, Realtor. Landlord 26 years
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Father wants to gift a 50 acre tract of land to s son. the

Customer Question

Father wants to gift a 50 acre tract of land to his son. the land currently has agriculturally deferred property tax status. this tract will continue to be farmed after the transfer. is there a way to transfer the entire tract of land without having to pay the past three years deferred taxes? this property has been in the family for about 100 years. No liens on this tract.
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.

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NC has a land use program that allows property taxes to be deferred based on the particular use of the property. It doesn't waive or forgive them, it just defers them for some period of time.

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However, if the land changes ownership (by sale, gift, or inheritance) or if the property use changes, the Tax Office must re-evaluate whether the land still qualifies for the program.

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However, if the new owner is continuing the same use on the same property, and the new owner agrees to be responsible for deferred taxes whenever in the future they become due, the new owner can continue the land use status without interruption. If the land no longer qualifies for the program, it triggers the Tax Office sending a bill for the last 3 years’ worth of deferred taxes, plus interest. That means being charged for the difference between a “regular” tax bill and your reduced tax bill for the past 3 years, plus interest. If the bill isn’t paid, the Tax Office will file a lien against the property.

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So based on your comments, if the use remains the same it should be eligible to continue with the deferred tax status.

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You can read the specific NC laws at N.C.G.S. 105-277. You can also call the County Tax Office and tell them you are calling about the land use program, and they can confirm the continued eligibility.

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thanks

Barrister

Customer: replied 1 year ago.
Thank you. The land will continue in the same use, farming. Son may at some time put a house there, which I would assume would change at least an acre or two from deferred status. But that would be long in the future, or never.
Expert:  Barrister replied 1 year ago.

Then you should be fine since the use is continuing, which is the main purpose for the deferred program in the first place...

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thanks

Barrister

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