Governor Signs HB 344 (System Development Fee Update) Into Law
Governor Cooper has signed one of NCHBA's legislative priorities, House Bill 344 (System Development Fee Update) into law.
House Bill 344 adds clarifying language modeled after existing national standards that are used in calculating the system development fee and should lower the fee in some places of the state. This legislation also makes clear that another local government unit may collect the fee on behalf of the water or sewer system.
NCHBA added a provision during the process that a regulated public water/wastewater system is solely responsible for its income taxes and may accrue them over a 25 year period. North Carolina, like many states, were requiring the developer and/or builder to pay the 29.82% tax on the contributions of infrastructure including water lines and tap fees. These taxes are required due to federal tax law changes that occurred as part of the Federal Tax Cuts and Jobs Act of 2017. This change will save our members who use these systems hundreds of thousands of dollars per year.