Builders Inventory Exclusion

Real Property held for sale by a builder is designated a special class of property in North Carolina.

Residential

  • Real property intended to be sold and used as an individual's residence immediately after construction of residence
  • Excludes property occupied by a tenant or used for commercial purposes, such as model homes
  • Exclusion ends when the property is sold or after 3 years from the application year

Commercial

  • Real property that is intended to be sold or used for commercial purposes immediately or after improvement
  • Exclusion ends when the property is sold or after 5 years from the application year

Builders Flow Chart

Effective for taxable years imposed on or after July 1, 2020, a single application is required.

A timely application is to be submitted between January 1 and January 31. Late applications will be accepted for review if the Board of Equalization and Review approves the reason for the late submission.

Builders Property Tax Exclusion - AV-65 (PDF)