{"id":76,"date":"2026-05-13T23:34:22","date_gmt":"2026-05-13T23:34:22","guid":{"rendered":"https:\/\/northcarolinamovingjournal.com\/?p=76"},"modified":"2026-05-13T23:34:22","modified_gmt":"2026-05-13T23:34:22","slug":"bill-to-close-property-tax-loophole-advances-in-nc-house-committee","status":"publish","type":"post","link":"https:\/\/northcarolinamovingjournal.com\/?p=76","title":{"rendered":"Bill to close property tax loophole advances in NC House committee"},"content":{"rendered":"
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The North Carolina House Finance Committee has signed off on a bill to close a property tax loophole for affordable housing that is costing local governments tens of millions of dollars each year.<\/span><\/p>\n

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Closing the loophole would <\/span> and $32.6 million by fiscal year 2030-31, according to estimates by the General Assembly\u2019s Fiscal Research Division.<\/span><\/p>\n

FRD, which provides lawmakers with nonpartisan fiscal expertise, shared the data this week as the committee considered<\/span> House Bill 1042<\/span> to close the loophole.<\/span><\/p>\n

H1042 would make it tougher for for-profits to partner with nonprofits to receive the tax benefits. It would require such partnerships to include government funding to ensure affordability.<\/span><\/p>\n

If properties that are not financed with government support, the new proposal requires them to be 100% owned and operated by an eligible nonprofit that has owned and operated affordable rental housing for at least five years. The nonprofit may not lease the property to another entity or receive funding or financial assistance from a for-profit organization.<\/span><\/p>\n

\u201cThe intent of this work is to preserve the low- to moderate-income or affordable housing exemption for long-term affordable housing, and ensure that there is a public benefit from providing this exemption,\u201d said Rep. Erin Par\u00e9 (R-Wake) at Tuesday\u2019s meeting.<\/span><\/p>\n

Current law gives generous property tax cuts to for-profit apartment complex owners that partner with qualifying nonprofits, as <\/span>NC Newsline previously reported<\/span>.<\/span><\/p>\n

The scheme, described by critics as a \u201crent-a-nonprofit structure,\u201d allows for-profit apartment complex owners to take advantage of the tax exemption by handing over a fraction of ownership to a willing nonprofit.\u00a0<\/span><\/p>\n

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NC House committee wants to close costly tax loophole for affordable housing<\/p>\n<\/blockquote>\n