Your County’s Dirty Little Secret, Part 2/3

Okay, so now we know that there are types of property excluded from taxation. No surprise– they don’t tax your blankets, for example. You knew that.

Let’s look at the specifics of exclusion, from…

“Article 12.

Property Subject to Taxation.

§ 105-274.  Property subject to taxation.

(a)        All property, real and personal, within the jurisdiction of the State shall be subject to taxation unless it is:

(1)        Excluded from the tax base by a statute of statewide application enacted under the classification power accorded the General Assembly by Article V, § 2(2), of the North Carolina Constitution, or

(2)        Exempted from taxation by the Constitution or by a statute of statewide application enacted under the authority granted the General Assembly by Article V, § 2(3), of the North Carolina Constitution.

§ 105-275.  Property classified and excluded from the tax base.

The following classes of property are designated special classes under Article V, Sec. 2(2), of the North Carolina Constitution and are excluded from tax:

(1)        Repealed by Session Laws 1987, c. 813, s. 5.

(2)        Tangible personal property that has been imported from a foreign country through a North Carolina seaport terminal and which is stored at such a terminal while awaiting further shipment for the first 12 months of such storage. (The purpose of this classification is to encourage the development of the ports of this State.)

(16)      Non-business Property. – As used in this subdivision, the term “non-business property” means personal property that is used by the owner of the property for a purpose other than the production of income and is not used in connection with a business. The term includes household furnishings, clothing, pets, lawn tools, and lawn equipment. The term does not include motor vehicles, mobile homes, aircraft, watercraft, or engines for watercraft.”

Holy crap, that’s a lot to wade through to get to #16. That tells you something right there. Surely, a whole class of property that is excluded by nature should get its own heading, and be clearly stated. Instead, the legislature sees fit to put this in the middle of pages and pages of “Moose Lodge” this and “Elks Lodge” that.

So, non-business property is not taxable. Non-business, therefore, falls outside the scope of the state’s jurisdiction. It is excluded. This is a working definition of the state’s ability to tax- it can tax business property.  You don’t need to ask for an exemption; it is excluded from the start. The definition of business is that it is some activity done by privilege granted by the state. Therefore they can tax it.

Are you living in your house and mowing the lawn as a privilege? Me neither. I have a right to own private property. I will never declare my land to be real estate, real property or anything else that creates a presumption of jurisdiction on the part of the state/county.

“Non-business property… The term does not include motor vehicles, mobile homes, aircraft, watercraft, or engines for watercraft.”

Do you have to be TOLD that your house is non-business property? It certainly doesn’t say that it isn’t included in “non-business property”.

I will leave you to make your own judgment about how many presumptions are wrong, how many people are taxed incorrectly, how many people lose needed money this way, how many take sick/vacation go to court over this, how many lose homes for tax debts… I wouldn’t want to color your opinion.

Continued in part 3…

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4 thoughts on “Your County’s Dirty Little Secret, Part 2/3

  1. Be careful. What you are referencing doesn’t included “real” property !
    You sound like the type of free thinker that would like to know about North Carolina American Republic ( this is the home state site for 12th state of North Carolina since 1997 ) . You are welcome to contact me at : 704-942-6516 my name is Jim

    • Hi Jim- I will check out the site when I get the time.

      Can you clarify what your concern is?

      I believe that my post from today clarifies the fact that “Non-business personal property” can indeed include a house.

      Good to hear from you!

      Commonlawman

  2. I just realized that last post I was referring to never showed up. Hopefully it is still in my history and I can publish rather than re-write. It is well worth checking back for, as it shows that land and houses can definitely be personal, non-business property and thus excluded from taxing jurisdiction.

  3. Hello and greetings im going through probate recovering property and wanted to know how to apply the laws. for this administered procedure. Thanks rael

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