North Carolina Department of Revenue

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North Carolina Department of Revenue

• 2009 Advanced Personal Property Seminar
• Joseph S. Koury Convention Center
• Sheraton Greensboro Hotel At Four Seasons Mall
• Greensboro, North Carolina
• August 31 to September 4, 2009

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Manufactured Housingin Relation toThe Shirley
Murray Case04 PTC 4

• Durham County, NC
• Kim Simpson ----- Tax
  Administrator
• J V Miller ASA ---- Deputy
  Assessor
• Tuesday September 1
• 130 pm - 220 pm

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MANUFACTURED HOUSING - QUICK FACTS

• North Carolina
• Mobile Homes - 602,970 (Source U.S. Census
  Bureau, 2005-2007
• American
  Community Survey)
• In North Carolina Mobile Homes represent 15.0
  of all single family housing
• In the U.S. North Carolina ranks 5 in total
  Mobile Home units
• (Source U.S. Department of Commerce - Economics
  and Statistics
• Administration BUREAU OF THE CENSUS
  - Issued May 1994)

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MANUFACTURED HOUSING - QUICK FACTS

• North Carolina
• By Size Of Home - 2008
• Average Sales Price Of New Manufactured Homes
  Placed (Set-up)
• Single-Wide----- 36,500
• Multi-Wide------- 77,200

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MANUFACTURED HOUSING - QUICK FACTS

• A majority of manufactured homes (76-percent) are
  never moved after installation setup (Doublewides
  90-percent /-).
• In 2001, the industry shipped 193,120 homes from
  275-manufacturing facilities.
• Multi-section shipments, in 2001, outpaced
  single-section shipments, commanding 74.7-percent
  of total shipments.
• According to the Census Bureau, 2001 figures show
  that 67-percent of new manufactured homes were
  located on private property, and
• 33-percent of new manufactured homes were located
  in communities.

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• FACTORY PRODUCED HOUSING
• This presentation deals with ad valorem appraisal
  of manufactured housing, as such What is a
  Manufactured Home.
• There are four generally accepted categories of
  FACTORY PRODUCED
• HOUSING each of which has distinguishable
  characteristics and meets a unique set of
  criteria.
• The four categories are
• 1) MANUFACTURED
• 2) MODULAR
• 3) PANELIZED
• 4) PRE-CUT
• Note Factory Produced Housing also known as
  Systems-Built Homes.

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• FACTORY PRODUCED HOUSING
• MANUFACTURED - An in depth discussion of
  Manufactured Homes follows Modular, Panelized,
  and Pre-Cut.
• MODULAR - In many cases, after placed on-site, a
  Modular home is indistinguishable from a
  Manufactured home. In fact, todays
  manufacturers/builders offer most floor plans as
  either Manufactured or Modular.
• So whats the difference?
• Manufactured homes include an integral steel
  undercarriage Modular homes do not.

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• FACTORY PRODUCED HOUSING - MODULAR (Continued)
• Simply put, a Manufactured home rolls to its
  destination on a self-contained steel
  undercarriage composed of wheels, springs, and
  tow hitch (tongue).

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• FACTORY PRODUCED HOUSING - MODULAR (Continued)
• Modular homes require trucking to their
  destination on a Flatbed or Lowboy
  semi-trailer.
• A Lowboy is a semi-trailer that has two drops in
  deck height one-drop right after the gooseneck
  and one-drop right before the tires. This allows
  the deck to be extremely low versus normal
  trailers.
• A Flatbed is a wheeled semi-trailer with a flat
  cargo-carrying surface or deck and without any
  superstructure (sides).

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• FACTORY PRODUCED HOUSING - MODULAR (Continued)
• Flatbed Semi-Trailer

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• FACTORY PRODUCED HOUSING - MODULAR (Continued)
• October 15, 2003 - North Carolina
• The definition of manufactured home under G.S.
  105-164.3(20) was amended to exclude a modular
  home. A manufactured home is a structure that is
  designed to be used as a dwelling and is
  manufactured in accordance with the
  specifications for manufactured homes issued by
  the United States Department of Housing and Urban
  Development (HUD).
• A new definition of modular home under G.S.
  106-164.3(21a) and of modular homebuilder under
  G.S. 105-164.3(21b) were enacted.
• (continue overleaf)

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• FACTORY PRODUCED HOUSING - MODULAR (Continued)
• October 15, 2003 - North Carolina (Continued)
• A modular home is a factory-built structure that
  is designed to be used as a dwelling, is
  manufactured in accordance with the
  specifications for modular homes under the North
  Carolina Residential Building Code, and bears a
  seal or label issued by the Department of
  Insurance pursuant to G.S. 143.139.1. A modular
  homebuilder is a person who furnishes for
  consideration a modular home to a purchaser that
  will occupy the modular home. The purchaser can
  be a person that will lease or rent the unit as
  real property.

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• FACTORY PRODUCED HOUSING - MODULAR (Continued)
• Remember-
• Modular Housing construction is not a federally
  regulated building code rather, Modular Housing
  regulation typically occurs at local, state, or
  regional level.
• In North Carolina, Office of the State Fire
  Marshal administers the NC Modular Construction
  Program, for design-standards, and specifications
  see G.S. 143-139.1.
• Moreover, for purpose of ad valorem taxation
  Modular homes are Real Property, including those
  on land of another.

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• FACTORY PRODUCED HOUSING - PANELIZED
• PANELIZED Homes are factory-built homes in which
  panels - a whole wall with windows, doors, wiring
  and outside siding - are transported to the site
  and assembled.
• Also
• Homes that are constructed of largely complete
  (or closed) panel sections. For example, a wall
  panel could consist of windows, a door, all the
  inside wiring, and insulation, its interior side
  covered with gypsum (dry wall), its outside with
  exterior siding. The finished panels are then
  transported to the building site, together with
  floor and roof panels, and assembled, usually
  with the help of a crane. An alternative system
  uses open panels in which the interior is left
  open for on-site installation of wiring,
  insulation, etc. Built to local codes.

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• FACTORY PRODUCED HOUSING - PANELIZED (Continued)

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• FACTORY PRODUCED HOUSING - PANELIZED (Continued)
• PANELIZED homes must meet state or local building
  codes where they
• are sited, generally same as site-built homes.
• As with Modular homes, for purpose of ad valorem
  taxation Panelized homes are Real Property.

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• FACTORY PRODUCED HOUSING - PRE-CUT
• PRE-CUT is the name for factory-built housing in
  which building materials are factory-cut to
  design specifications, transported to the site
  and assembled.
• Pre-Cut include kit, log and dome homes.
• Pre-Cut housing must meet local, state or
  regional building codes.
• As with Modular homes, for purpose of ad valorem
  taxation Pre-Cut homes are Real Property.

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• FACTORY PRODUCED HOUSING - PRE-CUT
• Pre-Cut - Dome

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• FACTORY PRODUCED HOUSING - (Continued)
• For ad valorem real property appraisal, when
  Factory Produced Housing including
• Modular,
• Panelized, and
• Pre-Cut
• meets applicable local, state or regional
  building code - apply valuation methods and
  procedures developed for Single Family
  Residences.
• In other words, appraise from your Schedules, of
  Values, Standards, and Rules- as if Single
  Family.

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• FACTORY PRODUCED HOUSING - MANUFACTURED
• Note The balance of this presentation deals
  specifically with Manufactured Homes.
• Manufactured homes defined- residential
  structures built on steel undercarriages with
  necessary wheel assemblies and tow hitches for
  transport to permanent or semi-permanent sites.
• Wheel assemblies and tow hitch are removable, but
  the integral steel undercarriage remains intact
  as a necessary structural component.

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• All transportable sections of manufactured homes
  built in the U.S. after June 15, 1976, must
  contain a red label. The label is the
  manufacturer's certification that the home
  section is built in accordance with HUD's
  construction and safety standards. HUD standards
  cover Body and Frame Requirements, Thermal
  Protection, Plumbing, Electrical, Fire Safety and
  other aspects of the home.
• The HUD Code is both national and preemptive.
  This means each State or political subdivision of
  a State must adopt the Code without modification.
• Because of federal regulation, Manufactured
  Housing is often referred to as HUD Code or
  HUD Code House.

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• HUD Label

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• HUD Label

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• On October 8, 1980 public law 96-399 was enacted
  by the U. S. Congress officially changing the
  name from mobile home to
• MANUFACTURED HOME.
• June 27, 1985 North Carolina adopted the federal
  government name change from mobile home to
  MANUFACTURED HOME.
• Manufactured housing is the only federally
  regulated national building code.
• There follows an excerpt from a April 2007 FEMA
  bulletin titled -
• Understanding and Improving Performance of New
  Manufactured Homes During High-Wind Events

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• MANUFACTURED HOME AGES
• Although there are no strict definitions of
  older and new manufactured homes, the
  following descriptions, which are based on the
  evolution of manufactured home construction
  standards, are useful.
• Older Manufactured Homes
• This category includes pre-code homes and
  early code homes.
• Some manufactured homes considered older
  may be relatively
• new from an expected service life standpoint,
  but are still old from a
• wind resistance standpoint. For this
  recovery advisory, any
• manufactured home constructed before July 13,
  1994 is considered
• an older manufactured home.

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• MANUFACTURED HOME AGES
• Older Manufactured Homes
• Pre-Code Manufactured Homes
• This refers to homes built before June 15,
  1976, when the
• Department of Housing and Urban
  Development (HUD) began
• regulating construction. Prior to 1976,
  manufactured housing was
• essentially unregulated and wide
  variations in construction quality
• and strength existed. Pre-code
  manufactured homes were often
• called trailers or mobile homes because
  they were intended to be
• moved from place to place.

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• MANUFACTURED HOME AGES
• Older Manufactured Homes
• Early Code Manufactured Homes
• These are homes built after June 15, 1976
  (and before July 13,
• 1994) when the Manufactured Home
  Construction and Safety
• Standards (MHCSS), developed by HUD, first
  went into effect.
• After 1980, homes became known as
  manufactured housing.
• The MHCSS specified minimum wind pressures
  that manufactured
• homes must be designed to resist. It also
  contained general
• criteria for anchoring homes to resist
  wind forces.
• The wind pressures required by the MHCSS
  correspond to a
• sustained wind speed of around 70 miles
  per hour (mph) in an
• Exposure C area. This is approximately
  equivalent to 85 mph

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• MANUFACTURED HOME AGES
• New Manufactured Homes
• Hurricane Andrew destroyed numerous
  manufactured homes in
• 1992. In response to this damage, the MHCSS
  standards were
• strengthened on July 13, 1994. The
  strengthened standards apply to
• homes placed in higher wind speed areas.
• These 1994 revisions, which remain in effect
  today, established three
• types of homes HUD Zone I, HUD Zone II, and
  HUD Zone III
• homes.
• HUD Zone I homes are those homes designed
  to the original 1976
• standards.

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• MANUFACTURED HOME AGES
• New Manufactured Homes
• HUD Zone II homes are designed to resist
  sustained wind speeds
• of 100 mph (equivalent to approximately 120
  mph peak gust
• winds).
• HUD Zone III homes are designed to resist
  sustained wind speeds
• of 110 mph (equivalent to approximately 130
  mph peak gust
• winds).

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• HUD Wind Zone Map

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• HUD Wind Zone II Counties - North Carolina
• Beaufort / Brunswick / Camden / Chowan / Columbus
  / Craven / Currituck / Jones / New Hanover /
  Onslow / Pamlico / Pasquotank / Pender /
  Perquimans / Tyrrell / Washington
• HUD Wind Zone III Counties - North Carolina
• Carteret / Dare / Hyde

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• NC / Office of State Fire Marshal (OSFM)
• A Section Within the North Carolina Department of
  Insurance
• OSFM is comprised of the following six divisions
• Engineering and Codes
• Manufactured Buildings lt---
• Risk Management
• Fire and Rescue Training and Inspections
• Fire and Rescue Commission and Programs
• Prevention and Grants

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• NC / Office of State Fire Marshal / Manufactured
  Buildings Division
• - Serves as the State Administrative Agency for
  the Department of Housing Urban Development
  (HUD) for the State of North Carolina. Assures
  that manufactured homes are constructed in
  accordance with federal standards and installed
  in accordance with North Carolina regulations.
• - Receives and resolves complaints from buyers of
  manufactured homes and from persons in the
  manufactured housing industry. This could
  involve an inspection of the premises by the
  Division's State Inspectors. Assures that
  warranty obligations under state law are met.

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• NC / Office of State Fire Marshal / Manufactured
  Buildings Division
• - Licenses the following to ensure compliance
  with warranty requirements
• Home manufacturers
• Dealers and sales representatives
• Set-up contractors
• - Requires bonds or other security be posted by
  all licensees, except salesmen.

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• NC / Office of State Fire Marshal / Manufactured
  Buildings Division
• - Provides staff for the NC Manufactured Housing
  Board. Board consists of 9-members appointed by
  elected officials to serve. The staff assists
  the Manufactured Housing Board in resolving
  complaints, and/or licensing problems which the
  Division receives.
• - Monitors consumer complaints to assure
  compliance with state and federal regulations.
• - Administers NC Modular Construction Program.

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• FACTORY PRODUCED HOUSING - MANUFACTURED
  (Continued)
• NC REGULATIONS FOR MANUFACTURED HOMES 2004
  EDITION
• Go too - www.ncdoi.com (NC Department of
  Insurance)
• Select - OFFICE OF THE STATE FIRE MARSHAL
• Select - Manufactured Buildings
• Takes you to site - NCDOI-OSFM (Office
  State Fire Marshal)
• Select - NC REGULATIONS FOR
  MANUFACTURED HOMES 2004 ED
• You should now see document in
  several parts (PDF)
• Also See - MANUFACTURED HOUSING
  LICENSING
• FEDERAL
  MANUFACTURED HOUSING PROGRAM

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• FACTORY PRODUCED HOUSING - (Continued)
• For ad valorem real property appraisal, when
  Factory Produced Housing equal
• Manufactured Singlewide, and
• Manufactured Doublewide (multi-wide),
• meeting HUD building code - apply valuation
  methods and procedures developed specifically for
  housing of this type.
• In other words, Schedules, of Values, Standards,
  and Rules where only application is manufactured
  housing.

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Manufactured Home Construction Detail
Permanent Chassis - Steel Floor Frame
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Manufactured Home Construction Detail
Floor Structure
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Manufactured Home Construction Detail
Floor Structure - Inside
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Manufactured Home Construction Detail
Exterior Wall
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Manufactured Home Construction Detail
Exterior Wall
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Manufactured Home Construction Detail
Exterior Wall
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Manufactured Home Construction Detail
Exterior Wall
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Manufactured Home Construction Detail
Exterior Wall (Insulation)
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Manufactured Home Construction Detail
Exterior Wall (Belt Rail)
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Manufactured Home Construction Detail
Ceiling
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Manufactured Home Construction Detail
Roof (Construction Jig)
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Manufactured Home Construction Detail
Roof Shingling
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Manufactured Home Construction Detail
Exterior Sheathing
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Manufactured Home Construction Detail
Palm Harbor - Concord
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Manufactured Home Construction Detail
Palm Harbor - Concord
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• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• HISTORICAL
• As a point of beginning, Durham County valued
  Tangible Personal Property Manufactured Homes (at
  that time mobile homes) from National Automobile
  Dealers Association (NADA) Manufactured Homes
  Guide.
• Beginning in the late 1980s Durham County
  adopted Tech Data Systems (TEC), 4917 Watersedge
  Drive, Suite 100, Raleigh NC 27606, costing
  tables for valuation of Tangible Personal
  Property Manufactured Housing.

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• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• FEBRUARY 21, 2002
• On this date, Lower Cape Fear Tax Association
  sponsored one of several seminars held during
  2002 at various locations in the state.
• Purpose of seminar was presentation by the
  director and staff Department of Revenue,
  Property Tax Division of Legislative Changes
  relative to Manufactured Homes and such.
• Durham County represented by Teresa Hairston
  (Real Property Division Manager), and Jay V
  Miller ASA (Deputy Assessor).

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• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM MANUFACTURED HOUSING ISSUES (JOHN C.
  BAILEY/DIRECTOR PROPERTY TAX DIVISION)
• Please read referenced document, dated February
  1, 2002, (found here in after) in its entirety.
• Excerpt (John C. Bailey/Director Property Tax
  Division)...
• Manufactured Home Guidelines
• Our office has been studying manufactured home
  issues for some time now. Over 35 of all new
  home starts in North Carolina are manufactured
  homes. In many counties across the State the
  number of new homes starts which are manufactured
  homes out number those built on site.

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• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• Manufactured Home Guidelines (Continued)
• With the increase in this type of home and the
  most current change in the law it is essential
  that all counties become more uniform in the
  appraising and assessing of manufactured homes.
  Below is a set of guidelines to help develop more
  uniformity across the State.
• 1. All homes which meet the definition provided
  in 105-273(13) must
• be appraised and assessed as real property
  using the countys
• schedule of values from its last general
  reappraisal.
• 2. All homes which do not meet the definition
  provided in 105-273(13)
• must be appraised and assessed as personal
  property.

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• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• Manufactured Home Guidelines (Continued)
• 3. Counties should develop a schedule to appraise
  all manufactured
• homes based on the market in their county.
  This schedule should
• be part of the real property schedule of
  values but also be used to
• assess homes considered as personal property.
  Below are some
• factors to consider in developing these
  schedules (emphasis added
• by underlining)
• Newer units tend to appreciate over time
  versus depreciating
• over time, regardless of whether they
  have been listed as real
• property or as personal property.
  Exceptions might include
• rental units located in mobile home
  parks.

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• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• Manufactured Home Guidelines (Continued)
• Homes built prior to January 15, 1976
  were not required to be
• built according to the Federal HUD Code
  and tend to have
• accelerated depreciation, even to the
  point where the final value
• approaches that from the TEC schedules.
• There is no requirement that units
  listed as personal property
• must have a change in assessed
  valuation each year. While it
• can be reasonably expected that values
  might change, given the
• lack of sales data available for
  personal property, it can be
• argued that the change is not so easily
  measurable over a one
• or two-year period. Thus a schedule
  for real property units
• might also see duty for personal
  property units.

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• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• Manufactured Home Guidelines (Continued)
• Manufactured housing units listed as
  real property should be
• appraised from schedules created
  specifically for manufactured
• housing. NOTE Modular housing can
  certainly be appraised
• from the residential schedule of
  values. In some instances,
• manufactured housing may be as well,
  but the schedule should
• be separate and reflect any
  differences in price per square foot,
• depreciation, appreciation, and
  quality of construction.

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• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• Manufactured Home Guidelines (Continued)
• 4. All manufactured homes, except those older
  than 1976 and possibly
• those located in mobile homes parks, should
  be measured and listed
• and placed on a property record card. All
  additions such as decks,
• porches, and extra rooms should be appraised
  according to the
• developed schedule. Those meeting the
  definition of real property
• should be assessed as such and all others
  should be assessed as
• personal.
• 5. The value of those homes assessed as personal
  property should be
• reviewed each year and adjusted as the market
  indicates.

63

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• Manufactured Home Guidelines (Continued)
• 6. Those homes located on the land of someone
  other than the owner
• of the home shall be appraised the same as
  other homes. Any
• adjustments which are indicated by the market
  in a county should
• be recognized by the appraiser. These homes
  located on the land of
• another are to be assessed as personal
  property.

64

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• JANUARY 1, 2003
• Effective this date (Durham County)...
• 1) TEC valuation procedure retired.
• 2) Tangible Personal Property Manufactured
  Housing appraised by use
• of schedules created specifically for
  manufactured housing adopted
• as a part of the Schedules of Values,
  Standards, and Rules by
• Durham County Commission for General
  Reappraisal with effective
• date of January 1, 2001.

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• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• JANUARY 1, 2003 (Continued)
• Effective this date (Durham County)...
• 3) Appraisal of Tangible Personal Property
  Manufactured Housing
• executed through and by Durham County
  Computer Assisted Mass
• Appraisal System (CAMA) using same algorithms
  as identical Real
• Property Manufactured Homes.
• 4) Property Record Cards set-up for each Tangible
  Personal Property
• Manufactured Home.
• 5) Tangible Personal Property Manufactured
  Housing Units
• Appraised 943.

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• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• There follows, a review of - Memorandum...
• To-------County Assessors
• From----John C. Bailey, Director Property Tax
  Division
• Re-------Manufactured Housing Issues
• Presented February 21, 2002 - North Carolina
  Department of Revenue Seminar
• Present Use Value and Legislative Changes
• Lower Cape Fear Tax Association
• New Hanover County Museum
• Together with applicable NC General Statutes and
  associated General Statute changes leading to
  Durham County appraisal of personal property
  manufactured housing effective January 1, 2003.

67

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• February 1, 2002
• MEMORANDUM
• TO County Assessors
• FROM John C. Bailey, Director Property Tax
  Division
• Re Manufactured Housing Issues

68

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• As amended by the 2001 N.C. General Assembly and
  effective for listing purposes as of January 1,
  2002, G.S. 105-273(13) now reads as follows
• (13) Real property, real estate , and land
  mean not only the land itself, but also
  buildings, structures, improvements, and
  permanent fixtures on the land, and all rights
  and privileges belonging or in any way
  appertaining to the property. These terms also
  mean a manufactured home as defined in G.S.
  143-143.9(6) if it is a residential structure
  has the moving hitch, wheels, and axles removed
  and is placed upon a permanent foundation on land
  owned by the owner of the manufactured home. A
  manufactured home as defined in G.S. 143-143.9(6)
  that does not meet all of these conditions is
  considered tangible personal property. (emphasis
  added by underlining new language)

69

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• In addition to the new language underlined above,
  the words multi-section and enclosed were
  removed from the definition. This eliminates the
  requirements that a manufactured home be
  multi-sectional and that the permanent foundation
  be enclosed before it could be appraised as real
  property.
• Before this definition was changed the language
  was clear as to which mobile homes had to be
  appraised and assessed as real property but was
  not clear as to which mobile homes had to be
  carried as personal property.
• Because the statutes were silent or not clear on
  this issue, there are many different policies
  across the state. It is now clear that if any of
  the pertinent requirements are not met, as stated
  by statute, it must be considered as tangible
  personal property and listed accordingly.

70

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• Stated differently, all of the following
  requirements must be met for the unit to be
  considered real property
• 1. It must be a residential unit.
• 2. It must have the moving hitch, wheels and
  axles removed.
• 3. It must be placed on a permanent foundation.
• 4. It must be located on land owned by the owner
  of the unit.

71

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• WHICH HOMES ARE REAL?
• All manufactured homes which meet the four
  requirements listed above must be assessed as
  real property and those which do not must be
  assessed as personal property. Under this new
  definition of real property, the classification
  of many of the manufactured homes across the
  State will change. This would include singlewide
  units as well as multi-sectional units.
• WHAT IF THE HOME IS NOT A RESIDENTIAL UNIT BUT A
  BUSINESS UNIT?
• Based on the definition it would be assessed as
  personal property.

72

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• WHAT IF THE HITCH, WHEEL AND AXLES ARE NOT
  REMOVED FROM THE HOME?
• If these items have not been removed then the
  home is personal property regardless of the size
  and type of home.
• WHAT IS CONSIDERED A PERMANENT FOUNDATION?
• The Department of Insurance has issued building
  codes for the installation of manufactured homes.
  The only foundation required by the building
  code for a manufactured home is footings and
  piers. The footings are either of the poured
  concrete type or a pre-cast solid concrete pad.
  The size and depth of the footing depends on the
  type of home and the location of the home.

73

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• WHAT IS CONSIDERED A PERMANENT FOUNDATION?
  (Continued)
• The Building Code states that The bottom of all
  footings shall be below the frost line or a
  minimum of 4 inches below finished grade,
  whichever is greater. The frost line varies
  across the state and there is a chart in the
  Building Code which shows the frost line by
  County. The piers are either single stacked or
  double stacked. The number and placement of the
  piers are dictated by the Building Code. It is
  our opinion that all manufactured homes have a
  permanent foundation if their installation is in
  compliance with the Building Code. The North
  Carolina Building Code for manufactured homes can
  be found at
• www.ncdoi.com/osfm/documents/manufacturedbuilding/
  mhcode.pdf

74

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• WHAT IF THE HOME IS LOCATED ON LEASED LAND OR ON
  THE LAND OF SOMEONE OTHER THAN THE OWNER OF THE
  HOME?
• Manufactured homes must be located on land owned
  by the owner of the home in order to be assessed
  as real property. Prior to the changes of the
  2001 N.C. General Assembly, there was little
  statutory guidance regarding what was real versus
  personal property as it relates to manufactured
  housing. What was often relied upon was the
  language in requests for reappraisal bids
  (RFPs), simply stating that all doublewides
  would be picked up as real property. This
  practice has greatly contributed to the difficult
  situation many counties currently face a large
  number of manufactured housing units treated as
  leasehold real or carried as leasehold
  improvements to real property.

75

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• WHAT IF THE HOME IS LOCATED ON LEASED LAND OR ON
  THE LAND OF SOMEONE OTHER THAN THE OWNER OF THE
  HOME?
• Continued...
• Under the current law, there are no leasehold
  reals permitted for manufactured housing. All
  homes located on the land of someone other than
  the owner of the home should be assessed as
  personal property. There are many homes across
  the State, which have been assessed as real and
  now will have to be assessed as personal
  property.

76

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• HOW DOES THIS AFFECT THE TAX LIEN AND COLLECTION
  REMEDIES?
• The same collection remedies that were available
  before this law change may still be used to
  collect taxes on manufactured homes. There is an
  on going issue with manufactured homes and G.S.
  105-355, which states
• Taxes levied on improvements on or separate
  rights in real property owned by one other than
  the owner of the land, whether or not listed
  separately from the land under G.S. 105- 302
  (c)(11), shall be a lien on both the improvements
  or rights and on the land.

77

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• HOW DOES THIS AFFECT THE TAX LIEN AND COLLECTION
  REMEDIES? (Continued)
• There is much debate on whether or not a
  manufactured home located on the land of someone
  other than the owner of the home and assessed as
  personal property is a lien on the land. There
  is no clear requirement in G.S. 105-355 that the
  improvements on real property be assessed as
  real property in order to become a lien on the
  land. One could also argue that the term
  improvements on refers to real property only
  and that taxes on personal property improvements
  are not a lien on the land. Usually the threat
  to foreclosure on the land is enough to get the
  taxes owed on the home paid. Due to the fact
  that this issue appears to be untested in the
  courts at this time, care should be taken before
  an actual foreclose is carried out on land for
  taxes owed on a manufactured home owned by
  someone other than the land owner.

78

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• WHAT ABOUT MODULAR HOMES?
• Modular homes are built under the North Carolina
  Building Code just like site built homes and
  should be appraised and assessed as real
  property. Even those that may be on the land of
  someone other than the owner of the home should
  be considered real property.

79

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• VALUATION ISSUES
• Under this new definition there are going to be
  homes which were assessed as personal which now
  will be assessed as real and there will be homes
  which were assessed as real which now will be
  assessed as personal property. The single most
  important issue is that all these homes be
  appraised at their fair market value as required
  by
• G.S. 105-283 regardless of whether they are
  assessed as real property or personal property.

80

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• VALUATION ISSUES (Continued)
• WHAT ABOUT THE VALUE OF THE MANUFACTURED HOMES?
• Once the listing decision has been made,
  valuation must be addressed. All counties are
  encouraged to develop valuation guides for
  manufactured housing that facilitate the
  appraising of the property at its fair market
  value. Identical units listed as real versus
  personal have historically reflected vast
  differences in assessed valuations. Those
  differences generally grew even more
  disproportionate over time. Schedules for units
  listed and appraised as real property have tended
  to produce higher valuations than those produced
  for units listed as personal property.

81

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• VALUATION ISSUES (Continued)
• WHAT ABOUT THE VALUE OF THE MANUFACTURED HOMES?
• (Continued)
• It may be advisable to use the same set of
  schedules for all units regardless of how they
  are to be listed, real or personal. As with the
  appraisal of all property, the normal appraisal
  principles such as location, quality, condition,
  supply and demand, highest and best use, and
  substitution apply to the appraising of
  manufactured homes. (emphasis added by
  underlining )

82

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• VALUATION ISSUES (Continued)
• WHAT IF OUR SCHEDULE OF VALUES STATES THAT ALL
  DOUBLE WIDES ARE TO BE APPRAISED AS REAL
  PROPERTY?
• Under this new law, only those double wides which
  meet the four criteria listed in the definition
  can be assessed as real property. All other
  double wides are personal property. This does
  not mean that the value has to change on these
  units but that the property is treated as
  personal property from a listing, appraising,
  assessing and collection standpoint. All double
  wides on leased land or located on the land of
  another must be considered personal property.

83

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• VALUATION ISSUES (Continued)
• WHAT IF OUR SCHEDULE OF VALUES STATES THAT ALL
  DOUBLE WIDES ARE TO BE APPRAISED AS REAL
  PROPERTY? (Continued)
• While the law does require that all personal
  property be appraised each year, there is no
  requirement that units listed as personal
  property must have a change in assessed valuation
  each year. While it can be reasonably expected
  that values might change, given the lack of sales
  data available for personal property, it can be
  argued that the change is not so easily
  measurable over a one or two-year period. The
  value of these homes carried as personal property
  must be reviewed each year and changes made if
  dictated by the market.

84

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• VALUATION ISSUES (Continued)
• HOW DO WE APPRAISE THE SINGLEWIDES WHICH WERE
  PERSONAL PROPERTY BUT ARE NOW CONSIDERED REAL
  PROPERTY?
• Most counties have appraised some double wides as
  real property using a schedule of values from
  their latest general reappraisal. This same
  schedule should be used to appraise the
  singlewides with adjustments made for quality,
  shape and the fact that these homes are single
  units. In many cases, this will increase the
  value of the homes. This also will require that
  these homes be measured and listed like other
  homes in the county. Once the value is
  determined for these homes the value would remain
  the same until the next general reappraisal or
  any change in value would have to be made under
  G.S. 105-287.

85

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• MANUFACTURED HOME GUIDELINES
• Our office has been studying manufactured home
  issues for some time now. Over 35 of all new
  home starts in North Carolina are manufactured
  homes. In many counties across the State, the
  number of new homes starts which are manufactured
  homes out number those built on site. With the
  increase in this type of home and the most
  current change in the law, it is essential that
  all counties become more uniform in the
  appraising and assessing of manufactured homes.

86

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• MANUFACTURED HOME GUIDELINES (Continued)
• Below is a set of guidelines to help develop more
  uniformity across the State.
• 1. All homes which meet the definition provided
  in 105-273(13) must
• be appraised and assessed as real property
  using the countys
• schedule of values from its last general
  reappraisal.
• 2. All homes which do not meet the definition
  provided in 105-273(13)
• must be appraised and assessed as personal
  property.

87

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• MANUFACTURED HOME GUIDELINES (Continued)
• 3. Counties should develop a schedule to appraise
  all manufactured
• homes based on the market in their county.
  This schedule should
• be part of the real property schedule of
  values but also be used to
• assess homes considered as personal property.
  Below are some
• factors to consider in developing these
  schedules
• Newer units tend to appreciate over time
  versus depreciating
• over time, regardless of whether they
  have been listed as real
• property or as personal property.
  Exceptions might include rental
• units located in mobile home parks.

88

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• MANUFACTURED HOME GUIDELINES (Continued)
• Homes built prior to January 15, 1976
  were not required to be
• built according to the Federal HUD Code
  and tend to have
• accelerated depreciation, even to the
  point where the final value
• approaches that from the TEC schedules.
• There is no requirement that units listed
  as personal property
• must have a change in assessed valuation
  each year. While it
• can be reasonably expected that values
  might change, given the
• lack of sales data available for
  personal property, it can be
• argued that the change is not so easily
  measurable over a one or
• two-year period. Thus, a schedule for
  real property units might

89

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• MANUFACTURED HOME GUIDELINES (Continued)
• Manufactured housing units listed as real
  property should be
• appraised from schedules created
  specifically for manufactured
• housing.
• NOTE Modular housing can certainly be
  appraised from the
• residential schedule of
  values. In some instances,
• manufactured housing may be as
  well, but the schedule
• should be separate and reflect
  any differences in price per
• square foot, depreciation,
  appreciation, and quality of
• construction.

90

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• MANUFACTURED HOME GUIDELINES (Continued)
• 4. All manufactured homes, except those older
  than 1976 and possibly
• those located in mobile homes parks, should
  be measured and listed
• and placed on a property record card. All
  additions such as decks,
• porches, and extra rooms should be appraised
  according to the
• developed schedule. Those meeting the
  definition of real property
• should be assessed as such and all others
  should be assessed as
• personal.

91

• MANUFACTURED HOUSING IN RELATION TOTHE SHIRLEY
  MURRAY CASE - 04 PTC 4
• MEMORANDUM (Continued)
• MANUFACTURED HOME GUIDELINES (Continued)
• 5. The value of those homes assessed as personal
  property should be
• reviewed each year and adjusted as the market
  indicates.
• 6. Those homes located on the land of someone
  other than the owner
• of the home shall be appraised the same as
  other homes. Any
• adjustments which are indicated by the market
  in a county should
• be recognized by the appraiser. These homes
  located on the land of
• another are to be assessed as personal
  property.
• If you have any questions or need assistance with
  this matter, please contact David Baker or Kirk
  Boone at 919-733-7711. -END-

92
North Carolina General AssemblyChapter 105 -
TaxationThe Machinery Act

• Cases, statutes cited
• G.S. 105-291. Powers of Department and
  Commission.
• (a) General Powers. The Department of Revenue
  is authorized to exercise all powers reasonably
  necessary to perform the duties imposed upon it
  by this Subchapter and other laws of this State.
• (g) Power to Recommend Appraisal Standards. The
  Department may develop and recommend standards
  and rules to be used by tax supervisors and other
  responsible officials in the appraisal of
  specific kinds and categories of property for
  taxation...

93

• North Carolina General Assembly

94

• North Carolina General AssemblyChapter 105 -
  TaxationThe Machinery Act
• Cases, statutes cited
• Personal Property
• 143-143.9.(6) Definitions - Manufactured home
• 143-143.8 Purpose - North Carolina
  Manufactured Housing Board
• 105-273.(14) Definitions - Tangible Personal
  Property Defined

95

• North Carolina General AssemblyChapter 105 -
  TaxationThe Machinery Act
• Cases, statutes cited
• Personal Property (Continued)
• G.S. 105-317.1. Appraisal of personal property
  elements to be
• considered.
• 1) Effective until July
  1, 2002
• 2) Effective July 1, 2003

96

• North Carolina General AssemblyChapter 105 -
  TaxationThe Machinery Act
• Cases, statutes cited
• Personal Property (Continued)
• G.S. 105-317.1. Appraisal of personal property
  elements to be
• considered.
• In re Bosley - ...all
  property shall be appraised at
• 
  market value...

97
Article 9ANorth Carolina Manufactured Housing
Board

• Cases, statutes cited
• 143-143.9.(6) Definitions.
• Manufactured home. A structure, transportable
  in one or more sections, which, in the traveling
  mode, is eight feet or more in width or is 40
  feet or more in length, or when erected on site,
  is 320 or more square feet, and which is built on
  a permanent chassis and designed to be used as a
  dwelling with or without a permanent foundation
  when connected to the required utilities, and
  includes the plumbing, heating, air conditioning
  and electrical systems contained therein.

98
Article 9ANorth Carolina Manufactured Housing
Board

• Cases, statutes cited
• 143-143.8 Purpose.
• The General Assembly finds that manufactured
  homes have become a primary housing resource for
  many of the citizens of North Carolina. The
  General Assembly finds further that it is the
  responsibility of the manufactured home industry
  to provide homes which are of reasonable quality
  and safety and to offer warranties to buyers that
  provide a means of remedying quality and safety
  defects in manufactured homes. The General
  Assembly also finds that it is in the public
  interest to provide a means for enforcing such
  warranties.

99
Article 9ANorth Carolina Manufactured Housing
Board

• Cases, statutes cited
• 143-143.8 Purpose. (Continued)
• Consistent with these findings and with the
  legislative intent to promote the general welfare
  and safety of manufactured home residents in
  North Carolina, the General Assembly finds that
  the most efficient and economical way to assure
  safety, quality and responsibility is to require
  the licensing and bonding of all segments of the
  manufactured home industry.

100
Article 9ANorth Carolina Manufactured Housing
Board

• Cases, statutes cited
• 143-143.8 Purpose. (Continued)
• The General Assembly also finds that it is
  reasonable and proper for the manufactured home
  industry to cooperate with the Commissioner of
  Insurance, through the establishment of the North
  Carolina Manufactured Housing Board, to provide
  for a comprehensive framework for industry
  regulations. (1981, c. 952, s. 2 1999-393, s. 1
  2005-451, s. 1.)

101
Chapter 105 - TaxationThe Machinery Act
Tangible Personal Property Defined

• Cases, statutes cited
• 105-273.(14) Definitions.
• When used in this Subchapter (unless the context
  requires a different meaning)
• "Tangible personal property" means all personal
  property that is not intangible and that is not
  permanently affixed to real property.
• Note In law, tangibility is the attribute of
  being detectable with the senses.

102
The Machinery Act - Article 19Administration of
Real and Personal Property Appraisal

• Cases, statutes cited
• G.S. 105-317.1. Appraisal of personal property
  elements to be
• considered.
• There follows several slides defining Appraisal
  of Personal Property.
• 1) Effective until July 1, 2002 - means gt
  Effective for taxes imposed for taxable years
  January 1, 2002 or before.
• 2) Effective July 1, 2003 ------ means gt As
  amended by the 2002 N.C. General Assembly
  effective for taxes imposed for taxable years on
  or after January 1, 2003, added subsection (c).

103
The Machinery Act - Article 19Administration of
Real and Personal Property Appraisal (Effective
January 1, 2002 or before)

• Cases, statutes cited
• G.S. 105-317.1. Appraisal of personal property
  elements to be
• considered.
• (a) Whenever any personal property is
  appraised it shall be the duty
• of the persons making appraisals to
  consider the following as to
• each item (or lot of similar items)
• (1) The replacement cost of the
  property
• (2) The sale price of similar
  property

104
The Machinery Act - Article 19Administration of
Real and Personal Property Appraisal (Effective
January 1, 2002 or before)

• G.S. 105-317.1. Appraisal of personal property
  elements to be
• considered.
• Continued...
• (3) The age of the property
• (4) The physical condition of the
  property
• (5) The productivity of the property
  
• (6) The remaining life of the
  property
• (7) The effect of obsolescence on the
  property

105
The Machinery Act - Article 19Administration of
Real and Personal Property Appraisal (Effective
January 1, 2002 or before)

• G.S. 105-317.1. Appraisal of personal property
  elements to be
• considered.
• Continued...
• (8) The economic utility of the
  property, that is, its usability
• and adaptability for
  industrial, commercial, or other
• purposes and
• (9) Any other factor that may affect
  the value of the property.
• (b) In determining the true value of taxable
  tangible...

106
The Machinery Act - Article 19Administration of
Real and Personal Property Appraisal (Effective
January 1, 2003)

• Cases, statutes cited
• G.S. 105-317.1. Appraisal of personal property
  elements to be
• considered.
• Note - Subsection (a) and (b) unchanged
  subsection (c) added.
• (c) A taxpayer who owns personal property
  taxable in the county
• may appeal the value, situs, or
  taxability of the property within
• 30 days after the date of the initial
  notice of value.

107
The Machinery Act - Article 19Administration of
Real and Personal Property Appraisal (Effective
January 1, 2003)

• G.S. 105-317.1. Appraisal of personal property
  elements to be
• considered.
• Continued...
• If the assessor does not give separate
  written notice of the value
• to the taxpayer at the taxpayer's last
  known address, then the tax
• bill serves as notice of the value of the
  personal property.

108
The Machinery Act - Article 19Administration of
Real and Personal Property Appraisal (Effective
January 1, 2003)

• G.S. 105-317.1. Appraisal of personal property
  elements to be
• considered.
• Continued...
• The notice must contain a statement that
  the taxpayer may
• appeal the value, situs, or taxability of
  the property within 30 days
• after the date of the notice. Upon
  receipt of a timely appeal, the
• assessor must arrange a conference...

109
The Machinery Act - Article 19Administration of
Real and Personal Property Appraisal (Effective
January 1, 2003)

• G.S. 105-317.1. Appraisal of personal property
  elements to be
• considered.
• Continued...
• ...with the taxpayer to afford the
  taxpayer the opportunity to
• present any evidence or argument
  regarding the value, situs, or
• taxability of the property. Within 30
  days after the conference,
• the assessor must give written notice to
  the taxpayer of the
• assessors final decision. Written
  notice of the decision is not
• required if the taxpayer signs an
  agreement accepting the value,
• situs, or taxability of the property.

110
The Machinery Act - Article 19Administration of
Real and Personal Property Appraisal (Effective
January 1, 2003)

• G.S. 105-317.1. Appraisal of personal property
  elements to be
• considered.
• Continued...
• If an agreement is not reached, the
  taxpayer has 30 days from
• the date of the notice of the assessor's
  final decision to request
• review of that decision by the board of
  equalization and review or,
• if that board is not in session, by the
  board of county
• commissioners. Unless the request for
  review is given at the
• conference, it must be made in writing to
  the assessor. Upon
• receipt of a timely request for review,
  the provisions of G.S. 105
• 322 or G.S. 105 325, as appropriate, must
  be followed.

111
The Machinery Act - Article 19Administration of
Real and Personal Property Appraisal

• Cases, statutes cited
• G.S. 105-317.1. Appraisal of personal property
  elements to be
• considered.
• --gt In substance this section and G.S. 105-283
  provide that all property shall be appraised at
  market value, and that all the various factors
  which enter into the market value of property are
  to be considered by the assessors in determining
  this market value for tax purposes. In re
  Bosley, 29 N.C. App. 468, 224 W.E2d 686, cert.
  denied, 290 N.C. 551, 226 S.E.2d 509 (1976).

112

• North Carolina General AssemblyChapter 105 -
  TaxationThe Machinery Act
• Cases, statutes cited
• Real Property
• G.S. 105-283. Uniform appraisal standards.
• In re Amp, Inc. -
  ...Determination by General
• 
  Assembly...
• G.S. 105-283. Uniform appraisal standards.
• In re Bosley - There may
  be reasonable variations
• from
  market value in appraisals... if
• these
  variations are uniform.

113

• North Carolina General AssemblyChapter 105 -
  TaxationThe Machinery Act
• Cases, statutes cited
• Real Property
• G.S. 105-283. Uniform appraisal standards.
• G.S. 105-284. Uniform assessment standard.
• G.S. 105-285. Date as of which property is to
  be listed and
• appraised.
• G.S. 105-317. Appraisal of real property
  adoption of schedules,
• standards, and rules.

114

• North Carolina General AssemblyChapter 105 -
  TaxationThe Machinery Act
• Cases, statutes cited
• Real Property
• 105-273.(13) Definitions. - Real property,
  real estate, and
• land ...
  
• 1) Effective for listing
  purposes January 1, 2001 or
• before.
• 2) Effective for listing
  purposes as of January 1, 2002.
• 3) Effective for listing
  purposes as of January 1, 2003.
• G.S. 105-291. Powers of Department and
  Commission.

115
North Carolina General AssemblyChapter 105 -
TaxationThe Machinery Act

• Cases, statutes cited
• G.S. 105-283. Uniform appraisal standards.
• --gt Determination by General Assembly. -- The
  North Carolina General Assembly, and no one else,
  determines how property in this State should be
  valued for purposes of ad valorem taxation. In
  re Amp, Inc., 287 N.C. 547, 215 S.E.2d 752 (1975)

116
North Carolina General AssemblyChapter 105 -
TaxationThe Machinery Act

• Cases, statutes cited
• G.S. 105-283. Uniform appraisal standards.
• --gt There may be reasonable variations from
  market value in appraisals of property for tax
  purposes if these variations are uniform. In re
  Bosley, 29 N.C. App. 468, 224 W.E2d 686, cert.
  denied, 290 N.C. 551, 226 S.E.2d 509 (1976).

117
The Machinery Act - Article 13Standards for
Appraisal and Assessment

• Cases, statutes cited
• G.S. 105-283. Uniform appraisal standards.
• All property, real and personal, shall as far as
  practicable be appraised or valued at its true
  value in money. When used in this Subchapter,
  the words "true value" shall be interpreted as
  meaning market value, that is, the price