North Carolina 2025 Session Status: In Committee Bipartisan · 14 D · 10 R cosponsors

HB 348 — Annexation of Present-Use Value Land/School Capacity.

Last action — Reptd Fav

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed House
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the House. Introduced March 10, 2025. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the House.

Prognosis

Advancing 42% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 24 sponsors

    2 primary, 22 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (14 D · 10 R) — cross-party backing.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

In plain language

Cities must get county approval before annexing certain agricultural lands.

This bill requires cities to gain consent from county commissioners before annexing specific agricultural properties that may impact school capacity. It applies to counties with populations over 150,000 and is effective July 1, 2025.

What this means for you
  • Families: This could affect families living in areas designated for annexation if it impacts local school capacities.

Bill Text

What changed in the latest version

180 added · 48 removed

Plain-language change summary

The recent revisions to House Bill 348 involve the addition of a requirement that grants can only be awarded to eligible farmers who submit an application. This change ensures a structured process for obtaining funding, making it easier to track who is receiving support and how the funds are utilized. This matters because it helps maintain accountability and ensures that assistance is given directly to those who actively seek it, potentially leading to a more effective distribution of resources to support local agriculture and forestry.

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GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 2 HOUSE BILL 348 Committee Substitute Favorable 4/30/25 Short Title:
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 H 1 HOUSE BILL 348 Short Title:
Annexation of PUV Land/School Capacity.
Farmers' Assistance Grant Program.
Representatives McNeely, Penny, Huneycutt, and Jeffers (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
March 11, 2025 A BILL TO BE ENTITLED AN ACT TO PROVIDE THAT PRIOR TO ANNEXING CERTAIN PRESENT-USE VALUE PROPERTY, A CITY MUST OBTAIN APPROVAL FROM THE BOARD OF COUNTY COMMISSIONERS.
Agriculture and Environment, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House March 11, 2025 A BILL TO BE ENTITLED AN ACT TO INCREASE THE CARRYFORWARD OF DEFERRED PROPERTY TAXES FOR PRESENT-USE VALUEPROPERTIES FROMTHREEYEARS TOSIXYEARS,TO CREATE A LOCAL GRANT PROGRAM USING THE EXCESS FUNDS CREATED THEREBY TO PROVIDE GRANTS TO ELIGIBLE FARMERS, AND TO PROVIDE THAT PRIOR TO ANNEXING CERTAIN PRESENT-USE VALUE PROPERTY, A CITY MUST OBTAIN APPROVAL FROM THE BOARD OF COUNTY COMMISSIONERS.
105-277.4 reads as rewritten:
"§ 105-277.4.
Agricultural, horticultural and forestland – Application;
appraisal at use value;
notice and appeal;
deferred taxes.
… (c) Deferred Taxes.
– Land meeting the conditions for classification under G.S.
105-277.3 must be taxed on the basis of the value of the land for its present use.
The difference between the taxes due on the present-use basis and the taxes that would have been payable in the absence of this classification, together with any interest, penalties, or costs that mayaccruethereon, are a lien on thereal propertyofthetaxpayeras provided in G.S.
105-355(a).
The difference in taxes must be carried forward in the records of the taxing unit or units as deferred taxes.
The deferred taxes for the preceding three six fiscal years are due and payable in accordance with G.S.
105-277.1F when the property loses its eligibility for deferral as a result of a disqualifying event.
event;
provided, however, that the deferred taxes due and payable for each year after the most recent preceding three fiscal years, and ending with the most recent preceding sixth fiscal year, shall be deposited to the funds created by G.S.
153A-466 or G.S.
160A-499.11, as appropriate.
A disqualifying event occurs when the land fails to meet any condition or requirement for classification or when an application is not approved.
…." SECTION 2.(a) Article 23 of Chapter 153A of the General Statutes is amended by adding a new section to read:
"§ 153A-466.
Farmers' Assistance Grant Program.
(a) Definitions.
– The following definitions apply in this section:
(1) Agricultural land.
– As defined in G.S.
105-277.2.
(2) Board.
– A board of county commissioners.
(3) County.
– As defined in G.S.
153A-1.
*H348-v-1* General Assembly Of North Carolina Session 2025 (4) Eligible farmer.
– An owner of agricultural land, horticultural land, or forestland that is taxed at its present-use value in accordance with G.S.
105-277.4.
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(5) Forestland.
– As defined in G.S.
105-277.2.
(6) Fund.
– A fund created by a board in accordance with subsection (b) of this section.
(7) Horticultural land.
– As defined in G.S.
105-277.2.
(b) Creation and Purpose of Fund.
– The board of every county shall create a fund, in accordance with the requirements of the Local Government Budget and Fiscal Control Act, as amended, to provide grants to eligiblefarmers locatedwithinthatcountyto support thecontinued vitality of the State's unique and historic agricultural, horticultural, and forestry-related economies, in accordance with this section.
(c) Source.
– A fund created by a county under this section shall consist of the deferred taxes paid to that county in accordance with G.S.
105-277.4(c).
(d) ApplicationRequired.–Grantsfromthefundmayonlybeawardedtoeligiblefarmers that have submitted an application.
A board shall use an application created by the Department of Revenue for purposes of complying with this subsection.
(e) Administration.
– The board of each county shall administer its respective fund and shall develop guidelines providingfortheadministrationofthe fund.
Theguidelinesshall include the following provisions, which shall apply to each grant from the fund:
(1) Grants shall only be awarded on an application-by-application basis.
(2) No eligible farmer may receive more than one grant from the fund during a budget year.
(3) Grant awards to an eligible farmer during a budget year shall be limited to the lesser of (i) ten thousand dollars ($10,000) or (ii) ten percent (10%) of the then available balance in the fund.
(4) An eligible farmer may not receive a total of more than five grants from the fund.
(5) Grants shall onlybeawarded andused forpurposes consistent with thegrowth and sustainability of the State's agricultural, horticultural, or forestland economies.
(6) Boards shall prioritize awarding grant funding under this section to eligible farmers that demonstrate the greatest financial need." SECTION 2.(b) Article 21 of Chapter 160A of the General Statutes is amended by adding a new section to read:
"§ 160A-499.11.
Farmers' Assistance Grant Program.
(a) Definitions.
– The following definitions apply in this section:
(1) Agricultural land.
– As defined in G.S.
105-277.2.
(2) City.
– As defined in G.S.
160A-1.
(3) Council.
– As defined in G.S.
160A-1.
(4) Eligible farmer.
– An owner of agricultural land, horticultural land, or forestland that is taxed at its present-use value in accordance with G.S.
105-277.4.
(5) Forestland.
– As defined in G.S.
105-277.2.
(6) Fund.
– A fund created by a council in accordance with subsection (b) of this section.
(7) Horticultural land.
– As defined in G.S.
105-277.2.
(b) Creation and Purpose of Fund.
– The council of every city shall create a fund, in accordance with the requirements of the Local Government Budget and Fiscal Control Act, as amended, to provide grants to eligible farmers located within that city to support the continued Page 2 House Bill 348-First Edition General Assembly Of North Carolina Session 2025 vitality of the State's unique and historic agricultural, horticultural, and forestry-related economies, in accordance with this section.
(c) Source.
– A fund created bya cityunder this section shall consist of the deferred taxes paid to that city in accordance with G.S.
105-277.4(c).
(d) ApplicationRequired.–Grantsfromthefundmayonlybeawardedtoeligiblefarmers that have submitted an application.
A council shall use an application created by the Department of Revenue for purposes of complying with this subsection.
(e) Administration.
– The council of each city shall administer its respective fund and shall develop guidelinesprovidingfortheadministrationofthe fund.
Theguidelinesshall include the following provisions, which shall apply to each grant from the fund:
(1) Grants shall only be awarded on an application-by-application basis.
(2) No eligible farmer may receive more than one grant from the fund during a budget year.
(3) Grant awards to an eligible farmer during a budget year shall be limited to the lesser of (i) ten thousand dollars ($10,000) or (ii) ten percent (10%) of the then available balance in the fund.
(4) An eligible farmer may not receive a total of more than five grants from the fund.
(5) Grants shall onlybe awardedandused forpurposes consistent with thegrowth and sustainability of the State's agricultural, horticultural, or forestland economies.
(6) Councils shall prioritize awarding grant funding under this section to eligible farmers that demonstrate the greatest financial need." SECTION 3.
No later than December 1, 2025, the Department of Revenue shall create and provide counties and local governments with copies of the application required under G.S.
153A-466(d) and G.S.
160A-499.11(d), as created by Sections 2(a) and 2(b) of this act.
The Departmentmayconsult withanyotherrelevantStateagencyorlocal governmentforthepurpose of creating applications under this section.
The applications created bythe Department under this section shall be uniform statewide and shall, at a minimum, provide for the following:
(1) Certification that the applicant is an eligible farmer as defined in G.S.
153A-466 and G.S.
160A-499.11.
(2) Certification that any grant funding awarded under G.S.
153A-466 or G.S.
160A-499.11 will be used by the applicant for purposes consistent with the growth and sustainability of the State's agricultural, horticultural, or forestland economies.
(3) Certification that the applicant intends to remain an eligible farmer for a minimum of one year following receipt of each grant awarded to the applicant under G.S.
153A-466 or G.S.
160A-499.11, as appropriate.
(4) A requirement that the applicant submit documentation detailing the applicant's need for grant funding and the intended uses by the applicant of any funds awarded.
(5) A requirement that the applicant provide the county or local government, as appropriate, with any relevant financial or other documentation necessary to determine the applicant's eligibility and appropriateness for a grant under G.S.
153A-466 or G.S.
160A-499.11.
SECTION 4.
G.S.
If the clerk certifies that upon investigation the petition appears to be valid, the council shall fix a date for a public hearing on the annexation.
If the clerk certifies that upon investigation the petition appears to be valid, the council shall fix a date for a House Bill 348-First Edition Page 3 General Assembly Of North Carolina Session 2025 public hearing on the annexation.
(c) Notwithstanding the provisions of subsection (b) of this section, prior to the public hearing, the city council shall direct the city planning department to consult with the planning department of the county with jurisdiction over the area proposed for annexation to determine whether zoning the area for residential use will increase the number of students attending public school in the county to more than one hundred percent (100%) of the county's current capacity, if the area meets all of the following:
(c) Notwithstanding the provisions of subsection (b) of this section, prior to the public hearing, the city council shall direct the planning department to determine whether zoning the area for residential use will increase the number of students attending public school in the county in which the area is located to more than one hundred percent (100%) of the county's current capacity if the area meets all of the following:
(d) If the planning department finds that zoning the area for residential use will increase the number of students as provided in subsection (c) of this section, the board of county commissioners with jurisdiction over the area must approve the annexation prior to the city *H348-v-2* General Assembly Of North Carolina Session 2025 council adopting the annexation ordinance.
(d) If the planning department finds that zoning the area for residential use will increase the number of students as provided in subsection (c) of this section, the board of county commissioners with jurisdiction over the area must approve the annexation prior to the city council adopting the annexation ordinance.
If the board of county commissioners does not approve the annexation, the city council may not proceed with the adoption of the annexation ordinance unless it agrees to pay the county the amount necessary to come back into compliance with school capacity." SECTION 2.
If the board of county commissioners does not approve the annexation, the city council may not proceed with the adoption of the annexation ordinance unless it is willing to pay the county the amount necessary to come back into compliance with school capacity." SECTION 5.
This act becomes effective July 1, 2025, and applies to petitions for annexation received on or after that date.
The extended carryforward of deferred property taxes under G.S.
Page 2 House Bill 348-Second Edition
105-277.4(c), as amended by Section 1 of this act, becomes effective for taxes imposed for taxable years beginning on or after July 1, 2026.
Properties already having three or more years of deferred taxes under G.S.
105-277.4(c) as of the date this act becomes law shall phase in to the first year of the extended carryforward (year four of six), beginning July 1, 2026.
Sections 2 and 3 of this act become effective upon the earlier of (i) the date this act becomes law or (ii) October 1, 2025.
Section 4 of this act becomes effective July1, 2025, and applies to petitions for annexation received on or after that date.
Except as otherwise provided, this act is effective when it becomes law.
Page 4 House Bill 348-First Edition
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Action History

  1. Reptd Fav

  2. Cal Pursuant Rule 36(b)

  3. Added to Calendar

  4. Withdrawn From Cal

  5. Re-ref Com On Rules, Calendar, and Operations of the House

  6. Reptd Fav Com Sub 2

  7. Re-ref Com On Rules, Calendar, and Operations of the House

  8. Reptd Fav Com Substitute

  9. Re-ref Com On Finance

  10. Passed 1st Reading

  11. Ref to the Com on Agriculture and Environment, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House

  12. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 22 co-sponsors · 155 not signed on

Sponsors (2)

Co-sponsors (22)

Not signed on (155)

155 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation education agriculture
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Frequently asked questions

Who sponsors HB 348?
HB 348 is sponsored by Shelly Willingham (Democratic), Brian Turner (Democratic), Stephen M. Ross (Republican), Renée A. Price (Democratic), Garland E. Pierce (Democratic), Ben T. Moss, Jr. (Republican), Jarrod Lowery (Republican), Keith Kidwell (Republican), Frank Iler (Republican), Pricey Harrison (Democratic), Jimmy Dixon (Republican), Allison A. Dahle (Democratic), Mike Colvin (Democratic), Bryan Cohn (Democratic), Maria Cervania (Democratic), Terry M. Brown Jr. (Democratic), Gloristine Brown (Democratic), Jerry "Alan" Branson (Republican), Eric Ager (Democratic), B. Ray Jeffers (Democratic), Cody Huneycutt (Republican), Jeffrey C. McNeely (Republican), Cecil Brockman (Democratic), and Jake Johnson (Republican).
What is the current status of HB 348?
This bill is in committee in the House. Introduced March 10, 2025. It must pass committee before a floor vote.
Where can I track HB 348?
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