NC delays closing property tax loophole that costs local governments millions
AI-generated summary reviewed by our newsroom.
- NC budget omitted a fix to the Blue Ridge Housing property tax loophole costing millions.
- For-profits can own up to 99% and still get nonprofit tax treatment.
- A bipartisan bill awaits a Senate vote after unanimous approval in the state House.
Welcome to Under the Dome. I’m Ronni Butts, here to give you the latest in North Carolina politics.
North Carolina finally has a budget, which means that lawmakers have gone home to their districts for a break. Our politics team has written many stories breaking down what’s in the budget. But what did it leave out?
A policy that could have closed a property tax loophole didn’t make the cut. It’s called the Blue Ridge Housing loophole, and it’s cost local governments across the state millions in tax revenue.
It allows for-profit businesses to get a break on their property taxes by sharing property ownership with a nonprofit. But there’s a catch. There’s no minimum percent ownership required by the nonprofit. So, for-profits that share ownership with a nonprofit could own 99% of the property and still qualify as having property owned and operated by a nonprofit.
Democrats and Republicans alike say that the loophole should be shuttered. The state House took the lead on investigating this issue in a special committee chaired by three Republicans, including Rep. Erin Paré of Holly Springs and Rep. Julia Howard of Mocksville, who shared their thoughts about the tax exemption with me.
The two state House members told me that lobbying efforts in the Senate have contributed to halting the bill’s progress.
In May, the state House unanimously passed a bill to close the loophole, but it’s been stalled in the Senate Rules Committee.
You can read my story here.
Headlines you won’t want to miss
- Most NC private school students now get a taxpayer-funded voucher to pay costs
- NC gives up on its effort to regularly replace vehicle license plates
- NC homeowners pooled Helene relief money for road fix. Their HOA has gone silent
- Minority business office & health equity office are abolished in NC’s new budget
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This story was originally published July 10, 2026 at 5:00 AM with the headline "NC delays closing property tax loophole that costs local governments millions."
