NORTH CAROLINA GENERAL ASSEMBLY

1961 SESSION

 

 

CHAPTER 1169

HOUSE BILL 711

 

 

AN ACT TO AMEND SECTION 3, ARTICLE V, AND SECTION 5, ARTICLE V, OF THE CONSTITUTION OF NORTH CAROLINA RELATIVE TO THE POWER OF THE GENERAL ASSEMBLY TO EXEMPT AND TO CLASSIFY PROPERTY FOR AD VALOREM TAX PURPOSES.

 

The General Assembly of North Carolina do enact:

 

Section 1.  The first three sentences of Section 3 of Article V of the Constitution of North Carolina are hereby deleted and the following is inserted in lieu thereof:

"The power of taxation shall be exercised in a just and equitable manner, for public purposes only, and shall never be surrendered, suspended, or contracted away. Only the General Assembly shall have the power to classify property and other subjects for taxation, which power shall be exercised only on a State‑wide basis. No class or subject shall be taxed except by uniform rule, and every classification shall be uniformly applicable in every county, municipality, and other local taxing unit of the State. The General Assembly's power to classify shall not be delegated, except that the General Assembly may permit the governing boards of counties, cities, and towns to classify trades and professions for local license tax purposes."

Sec. 2.  Section 5 of Article V of the Constitution of North Carolina is hereby rewritten to read as follows:

"Property belonging to the State, counties and municipal corporations shall be exempt from taxation. The General Assembly may exempt cemeteries and property held for educational, scientific, literary, cultural, charitable, or religious purposes, and, to a value not exceeding three hundred dollars ($300.00), any personal property. The General Assembly may exempt from taxation not exceeding one thousand dollars ($1,000.00) in value of property held and used as the place of residence of the owner. Every exemption shall be on a State‑wide basis and shall be uniformly applicable in every county, municipality, and other local taxing unit of the State. No taxing authority other than the General Assembly may grant exemptions, and the General Assembly shall not delegate the powers accorded to it by this Section."

Sec. 3.  Sections 1 and 2 of this Act shall be submitted at the next general election to the qualified voters of the State in the same way and manner and under the same rules and regulations governing general elections in this State.

Sec. 4.  In such election, the electors favoring the amendments in Sections 1 and 2 of this Act shall vote ballots on which shall be printed or written the words: "For Constitutional amendment providing that the power of the General Assembly to classify and exempt property for taxation be exercised only on a State‑wide basis.", and those opposed shall vote ballots on which shall be printed or written the words: "Against Constitutional amendment providing that the power of the General Assembly to classify and exempt property for taxation be exercised only on a State‑wide basis."

Sec. 5.  The election upon these amendments shall be conducted in the same manner and under the same rules and regulations as provided by the laws governing general elections, and if a majority of the votes cast be in favor of the amendments, it shall be the duty of the Governor of the State to certify the amendments under the seal of the State to the Secretary of State, who shall enroll said amendments so certified among the permanent records of his office, and the amendments so certified shall be in full force and every part thereof, from and after the date of such certification.

Sec. 6.  In the event a majority of the votes cast be in favor of the amendment to classify property for taxation only on a State‑wide basis, and the amendment thereupon shall be in full force and effect, then and in such event G.S. 105‑294.1 shall thereafter read as follows: "Any agricultural product held in North Carolina by any manufacturer or processor for manufacturing or processing, which agricultural product is of such nature as customarily to require storage and processing for periods of more than one year in order to age or condition such product for manufacture, is hereby classified as a special class of property under authority of Section 3, Article V of the Constitution. Such agricultural products so classified shall be taxed uniformly as a class in each local taxing unit at sixty per cent (60%) of the rate levied for all purposes upon real estate and other tangible personal property by said taxing unit in which such agricultural product is listed for taxation."

Sec. 7.  In the event a majority of the votes cast be in favor of the amendment to classify property for taxation only on a State-wide basis, and the amendment thereupon shall be in full force and effect, then and in such event G.S. 105-294.2 shall thereafter read as follows: "Peanuts held in North Carolina in the year following the year in which such peanuts are grown are hereby classified as a special class of property under authority of Section 3, Article V of the Constitution. Such peanuts so classified shall be taxed uniformly as a class in each local taxing unit at twenty per cent (20%) of the rate levied for all purposes upon real estate and other tangible personal property by said taxing unit in which such peanuts are listed for taxation."

Sec. 7 1/2.  In the event a majority of the votes cast be in favor of the amendment to classify property for taxation only on a State‑wide basis, and the amendment thereupon shall be in full force and effect, then and in such event there shall be a new Section added to Chapter 105 of the General Statutes, to be numbered 105‑294.3, and to read as follows: "Cotton in bales held for manufacture or processing in North Carolina is hereby classified as a special class of property under authority of Section 3, Article V of the Constitution. Such cotton so classified shall be taxed uniformly as a class in each local taxing unit at fifty per cent (50%) of the rate levied for all purposes upon real estate and other tangible personal property by said taxing unit in which such cotton is listed for taxation. This classification shall not be held to repeal any other classification or exemption granted to cotton under any existing law of State‑wide application."

Sec. 8.  In the event a majority of the votes cast be in favor of the amendment to classify property for taxation on a State‑wide basis, and the amendment thereupon shall be in full force and effect, then and in such event subdivisions (10), (14), and (17) of G.S. 105‑297 shall be repealed, and G.S. 105‑281 shall be amended by adding thereto a new paragraph to read as follows: "Cotton, tobacco, other farm products, goods, wares, and merchandise which are held or stored for shipment to any foreign country, or held or stored at a seaport terminal awaiting further shipment after being imported from a foreign country through any seaport terminal in North Carolina, except any such products, goods, wares, and merchandise which have been so stored for more than twelve months on the date as of which property is assessed for taxation, are hereby designated a special class of personal property and shall not be assessed for taxation. It is hereby declared to be the policy of this State to use its system of property taxation in such manner, through the classification of the aforementioned property, as to encourage the development of the ports of North Carolina. For purposes of this Section and of this Subchapter, the term 'property, real and personal,' as used in the first paragraph of this Section, shall not include the property hereinabove in this paragraph so specially classified."

Sec. 8 1/2.  In the event a majority of the votes cast be in favor of the amendment to classify property for taxation only on a State-wide basis, and the amendment thereupon shall be in full force and effect, then and in such event there shall be a new subdivision added to G.S. 105‑297 to read as follows: "Wheat grown in North Carolina and stored in an unmanufactured state, owned or held by one other than a processor of wheat, upon which there is money borrowed and said money borrowed being secured by a mortgage on said wheat, shall be exempt for the year following the year in which grown."

Sec. 9.  All laws and clauses of laws in conflict with this Act are hereby repealed. Provided, however, that this Section shall not have the effect of repealing any statute now in effect relating to classifications or exemptions which have State‑wide applicability.

Sec. 10.  This Act shall be in full force and effect from and after its ratification.

In the General Assembly read three times and ratified, this the 22nd day of June, 1961.