Sen. Hanig files bill in North Carolina Senate to amend Machinery Act

A new bill filed by State Sen. Hanig seeks to amend the Machinery Act by adjusting property tax rules and penalties related to property listing requirements, according to the North Carolina State Senate.

The bill, filed as SB 427 on March 24 during the 2025 regular session, was formally listed with the short title: ‘Property Tax Modifications.’

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

In essence, this bill aims to amend the Machinery Act of North Carolina by modifying property tax classifications and penalties for failure to list property changes. It defines “non-business qualified personal property” exempt from tax as personal property not used for income production or business, and valued at $20,000 or less at acquisition, excluding motor vehicles, mobile homes, aircraft, and watercraft. The bill introduces penalties for willfully failing to list property changes, designating such failure as prima facie evidence of willfulness. It also provides that interest on underpayment of property taxes for certain areas accrued between Jan. 7, 2025, and Dec. 31, 2026, will not be collected or will be credited against future taxes. Sections 1 and 2 are effective for taxes from July 1, 2025, onward.

Of the three sponsors of this bill, Timothy D. Moffitt proposed the most bills (52) 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.

Hanig, a Republican, was elected to the North Carolina State Senate in 2025 to represent the state’s 1st Senate district, replacing previous state senator Norman Sanderson.