2005 North Carolina Code - General Statutes Article 8E - Excise Tax on Conveyances.

Article 8E.

Excise Tax on Conveyances.

§ 105‑228.28.  Scope.

This Article applies to every person conveying an interest in real estate located in North Carolina other than a governmental unit or an instrumentality of a governmental unit. (1967, c. 986, s. 1; 1999‑28, s. 1.)

 

§ 105‑228.29.  Exemptions.

This Article does not apply to any of the following transfers of an interest in real property:

(1)       By operation of law.

(2)       By lease for a term of years.

(3)       By or pursuant to the provisions of a will.

(4)       By intestacy.

(5)       By gift.

(6)       If no consideration in property or money is due or paid by the transferee to the transferor.

(7)       By merger, conversion, or consolidation.

(8)       By an instrument securing indebtedness. (1967, c. 986, s. 1; 1999‑28, s. 1; 1999‑369, s. 5.10(a)‑(c).)

 

§ 105‑228.30.  Imposition of excise tax; distribution of proceeds.

(a)       An excise tax is levied on each instrument by which any interest in real property is conveyed to another person. The tax rate is one dollar ($1.00) on each five hundred dollars ($500.00) or fractional part thereof of the consideration or value of the interest conveyed. The transferor must pay the tax to the register of deeds of the county in which the real estate is located before recording the instrument of conveyance. If the instrument transfers a parcel of real estate lying in two or more counties, however, the tax must be paid to the register of deeds of the county in which the greater part of the real estate with respect to value lies.

The excise tax on instruments imposed by this Article applies to timber deeds and contracts for the sale of standing timber to the same extent as if these deeds and contracts conveyed an interest in real property.

(b)       The register of deeds of each county must remit the proceeds of the tax levied by this section to the county finance officer. The finance officer of each county must credit one‑half of the proceeds to the county's general fund and remit the remaining one‑half of the proceeds, less the county's allowance for administrative expenses, to the Department of Revenue on a monthly basis. A county may retain two percent (2%) of the amount of tax proceeds allocated for remittance to the Department of Revenue as compensation for the county's cost in collecting and remitting the State's share of the tax. Of the funds remitted to it pursuant to this section, the Department of Revenue must credit seventy‑five percent (75%) to the Parks and Recreation Trust Fund established under G.S. 113‑44.15 and twenty‑five percent (25%) to the Natural Heritage Trust Fund established under G.S. 113‑77.7. (1967, c. 986, s. 1; 1991, c. 689, s. 338; 1991 (Reg. Sess., 1992), c. 1019, s. 1; 1993 (Reg. Sess., 1994), c. 772, s. 2; 1995, c. 456, s. 3; 1999‑28, s. 1; 2000‑16, s. 1; 2001‑427, s. 14(a).)

 

§ 105‑228.31.  Repealed by Session Laws 1999-28, s. 1.

 

§ 105‑228.32.  Instrument must be marked to reflect tax paid.

A person who presents an instrument for registration must report to the Register of Deeds the amount of tax due. Before the instrument may be recorded, the Register of Deeds must collect the tax due and mark the instrument to indicate that the tax has been paid and the amount of the tax paid. (1967, c. 986, s. 1; 1969, c. 599, s. 1; 1973, c. 476, s. 193; 1999‑28, s. 1.)

 

§ 105‑228.33.  Taxes recoverable by action.

A county may recover unpaid taxes under this Article in an action in the name of the county brought in the superior court of the county. The action may be filed if the taxes remain unpaid more than 30 days after the register of deeds has demanded payment. In such actions, costs of court shall include a fee to the county of twenty‑five dollars ($25.00) for expense of collection. (1967, c. 986, s. 1; 1999‑28, s. 1.)

 

§ 105‑228.34:  Repealed by Session Laws 1999‑28, s. 1.

 

§ 105‑228.35.  Administrative provisions.

Except as otherwise provided in this Article, the provisions of Article 9 of this Chapter apply to this Article. (1967, c. 986, s. 1; 1999‑28, s. 1; 2000‑170, s. 1.)

 

§ 105‑228.36:  Repealed by Session Laws 1999‑28, s. 1.

 

§ 105‑228.37.  Refund of overpayment of tax.

(a)       Refund Request. – A taxpayer who pays more tax than is due under this Article may request a refund of the overpayment by filing a written request for a refund with the board of county commissioners of the county where the tax was paid. The request must be filed within six months after the date the tax was paid and must explain why the taxpayer believes a refund is due.

(b)       Hearing by County. – A board of county commissioners must review a request for refund and must follow the time limitations set in G.S. 105‑266.1 for holding a hearing and making a decision. If the board decides that a refund is due, it must refund the county's portion of the overpayment, together with any applicable interest, to the taxpayer. If the board finds that no refund is due, the written decision of the board must inform the taxpayer that the taxpayer may ask the Secretary to review the decision. The board must send the Secretary a copy of a decision on a request for refund.

(c)       Review by Secretary. – A taxpayer whose request for a refund is denied by a board of county commissioners may obtain a review of the board's decision by the Secretary. The request must be made in writing and must be filed within 30 days after the taxpayer receives the board's decision denying the refund. The Secretary must send the board of county commissioners a copy of the Secretary's decision made on the request. If the Secretary determines that a refund is due, the board of county commissioners must refund the county's portion of the overpayment, together with any applicable interest, to the taxpayer. A decision of the Secretary is binding on a board of county commissioners.

(d)       Judicial Review. – A taxpayer who disagrees with a decision of the Secretary may bring an action against the county and the State to recover the disputed overpayment. The action may be brought in the Superior Court of Wake County or in the superior court of the county where the tax was paid.

(e)       Recording Correct Deed. – Before a tax is refunded, the taxpayer must record a new instrument reflecting the correct amount of tax due. If no tax is due because an instrument was recorded in the wrong county, then the taxpayer must record a document stating that no tax was owed because the instrument being corrected was recorded in the wrong county. The taxpayer must include in the document the names of the grantors and grantees and the deed book and page number of the instrument being corrected.

When a taxpayer records a corrected instrument, the taxpayer must inform the register of deeds that the instrument being recorded is a correcting instrument. The taxpayer must give the register of deeds a copy of the decision granting the refund that shows the correct amount of tax due. The correcting instrument must include the deed book and page number of the instrument being corrected. The register of deeds must notify the county finance officer and the Secretary when the correcting instrument has been recorded.

(f)        Interest. – An overpayment of tax bears interest at the rate established in G.S. 105‑241.1(i) from the date that interest begins to accrue. Interest begins to accrue on an overpayment 30 days after the request for a refund is filed by the taxpayer with the board of county commissioners. (2000‑170, s. 2.)

 

§§ 105‑228.38 through 105‑228.89.  Reserved for future codification purposes.