GENERAL ASSEMBLY OF NORTH CAROLINA

                          SESSION 1999





                        SENATE BILL 1252

                          RATIFIED BILL





AN ACT TO CREATE A TAX INCENTIVE FOR THE REDEVELOPMENT OF

  BROWNFIELDS PROPERTIES, AS RECOMMENDED BY THE ENVIRONMENTAL

  REVIEW COMMISSION.



The General Assembly of North Carolina enacts:



         Section 1.  Article 12 of Chapter 105 of the General

Statutes is amended by adding a new section to read:

"§ 105-277.13.  Taxation of improvements on

brownfields.

  (a)  Qualifying improvements on brownfields properties are

designated a special class of property under Article V, Sec. 2(2)

of the North Carolina Constitution and shall be appraised,

assessed, and taxed in accordance with this section.  An owner of

land is entitled to the partial exclusion provided by this

section for the first five taxable years beginning after

completion of qualifying improvements made after the later of

July 1, 2000, or the date of the brownfields agreement.  After

property has qualified for the exclusion provided by this

section, the assessor for the county in which the property is

located shall annually appraise the improvements made to the

property during the period of time that the owner is entitled to

the exclusion.

  (b)  For the purposes of this section, the terms "qualifying

improvements on brownfields properties" and "qualifying

improvements" mean improvements made to real property that is

subject to a brownfields agreement entered into by the Department

of Environment and Natural Resources and the owner pursuant to

G.S. 130A-310.32.

  (c)  The following table establishes the percentage of the

appraised value of the qualified improvements that is excluded

based on the taxable year:



                        Year                   Percent

                    of Appraised Value Excluded

                                  Year 1

                              90%

                                  Year 2

                              75%

                                  Year 3

                              50%

                                  Year 4

                              30%

                                  Year 5

                              10%."

         Section 2.  G.S. 130A-310.34(d) reads as rewritten:

  "(d)  Prior to entering into a brownfields agreement, the

Department shall take into account the comment received during

the comment period and at the public meeting if the Department

holds a public meeting. The Department shall incorporate into the

brownfields agreement provisions that reflect comment received

during the comment period and at the public meeting to the extent

practical. The Department shall give particular consideration to

written comment that is supported by valid scientific and

technical information and analysis. analysis

and to written comment from the units of local government that

have taxing jurisdiction over the brownfields property."



         Section 3.  Section 1 of this act is effective for taxes

imposed for taxable years beginning on or after 1 July 2001.  The

remainder of this act is effective when it becomes law.

         In the General Assembly read three times and ratified

this the 11th day of July, 2000.









                                         -------------------

                        Marc Basnight

                        President Pro Tempore of the Senate









                                         -------------------

                        James B. Black

                        Speaker of the House of Representatives









                                         -------------------

                        James B. Hunt, Jr.

                        Governor





Approved           .m. this        day of                , 2000