CHARLOTTE — Construction business is booming across the Charlotte area, but some lawmakers think developers in North Carolina need a break. They have written a bill that would keep developers from paying property taxes.
The bill's sponsor calls this a way to spur development after the recession.
Local county leaders said it will hurt funding for things like schools and parks.
The bill would exempt developers from paying property tax on a home they build and plan to sell for up to five years.
When someone buys it and moves in, then tax is collected. It forces counties to ignore what's called inventory homes. Local Rep. Mark Brody is one of its sponsors.
"We're trying to make it attractive for people to jump in and speculate again," said Brody. "We're making it easier for people to get back into the market."
Brian Francis lobbies lawmakers to protect taxpayers' interests in Mecklenburg County. He calls the bill unfair.
"We're also concerned about tax equity. You could have two properties sitting side by side taxed differently based on who owns it," Francis said.
It would be especially painful in Union County, which is in the process of a revaluation where almost 70 percent of home values will drop.
An official told Channel 9 it will effectively exempt a large portion of the new construction or growth in Union County.
Brody said those arguments are false. He said there will not be a big loss of revenue, because the bill does not cut money that's already been coming in, it just delays the collection of new money.
"That's a false assumption that it erodes the tax base. If you've never had the tax base, how can it erode it?" Brody said.
While most of the sponsors of this bill are Republicans, it was also co-sponsored by several Democrats, including Tricia Cotham and Rodney Moore from Mecklenburg County. The bill is heading to committee for further discussion.
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