Rep. Jeffers files bill in North Carolina House to extend property tax carryforward period

A new bill filed by State Rep. Jeffers seeks to support agricultural economies by extending tax carryforward periods and creating a local grant program for eligible farmers, according to the North Carolina State House.

The bill, filed as HB 348 on March 10 during the 2025 regular session, was formally listed with the short title: ‘Annexation of PUV Land/School Capacity.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill extends the carryforward period for deferred property taxes on present-use value properties from three to six years and establishes a local grant program using excess funds from this change. Grants will be available to eligible farmers for the support and sustainability of agricultural, horticultural, and forestry economies. Counties and cities must create funds to distribute grants, limited to $10,000 or 10% of the fund balance per farmer annually, with a maximum of five grants per farmer. The Department of Revenue, by December 1, 2025, must provide a uniform grant application process. Additionally, before annexation of certain present-use value properties, cities must obtain approval from the county board of commissioners, particularly if residential zoning would exceed county school capacities. The bill takes effect at various times, with sections effective when it becomes law or as specified.

Of the three sponsors of this bill, Cody Huneycutt proposed the most bills (15) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Jeffers, a Democrat, was elected to the North Carolina State House in 2023 to represent the state’s 2nd House district, replacing previous state representative Larry Yarborough.