North Carolina Form AV-10 is the Application for Property Tax Exemption or Exclusion that owners of real and personal property file with the county tax assessor to ask the county to remove qualifying property from the tax rolls under the North Carolina Machinery Act. The form is the only doorway to relief for churches, charities, schools, hospitals, lodges, historic properties, and other qualifying owners listed in N.C. Gen. Stat. § 105-278.3 through § 105-278.8, and a single missed box can mean a full year of taxes you should never have owed.
The current AV-10 carries a revised 7-2024 date in the lower-left corner of the official NCDOR PDF, and the NCDOR Property Tax Division reports that more than 18,000 AV-10 applications are filed across the 100 North Carolina counties each year, with rejection or deferral rates near 12% in the largest counties because of incomplete use statements and missing attachments.
- 📋 How every box, line, and signature block on the AV-10 should read when the assessor reviews it
- ⛪ Three full walkthroughs for a church parsonage, a 501(c)(3) charity, and a private school
- 🗓️ The January 31 listing deadline, the late-application relief under § 105-282.1(a1), and the discovery penalty trap in § 105-312
- 📎 The full pre-filing document checklist, from IRS determination letter to deed and bylaws
- ⚠️ The 10 mistakes that most often cost nonprofits their exemption, and how to avoid each one
What Form AV-10 Is and Who Must File It
Form AV-10 is the standardized application that the North Carolina Department of Revenue publishes for use by every county assessor in the state. The form lets a property owner ask the assessor to classify a parcel, building, or item of personal property as exempt (fully removed from the tax base) or excluded (carved out under a partial-relief statute). Counties may not invent their own version, but a few large counties such as Wake, Mecklenburg, and Guilford attach a county cover sheet that must be stapled to the AV-10.
The filer is always the owner of record as of January 1 of the tax year. That includes nonprofit corporations, religious bodies, school trustees, hospital authorities, fraternal lodges, and private individuals who own historic landmark property. A renter, a beneficial user, or a 501(c)(3) parent of a separate title-holding subsidiary cannot sign the form, even if it is the user-in-fact, because § 105-278.7 ties exemption to ownership and use together.
The statute behind the form is the Machinery Act, codified at Chapter 105, Subchapter II of the General Statutes. The consequence of skipping AV-10 is automatic: without an approved application on file, the property stays fully taxable, and the county will issue a tax bill in August with interest accruing from January 6 of the following year.
A common misconception is that an IRS 501(c)(3) determination letter by itself exempts North Carolina property. It does not. Federal income-tax status and state property-tax status are decided under separate rules, and many filers learn this the hard way when their first bill arrives.
Before You Start: Documents and Information You Need
Open a folder before you touch the form. The assessor will not chase you for missing documents; the office simply denies the application or sets it aside until the next listing year. Gathering everything up front turns a 90-minute task into a 30-minute task.
Use this pre-filing checklist as your gate. Each item below has a reason and a consequence if you skip it.
- IRS determination letter under 501(c)(3), 501(c)(4), or 501(c)(8). The assessor uses it to confirm the organization’s purpose; missing it usually triggers an automatic request for more information and delays approval.
- North Carolina Articles of Incorporation filed with the N.C. Secretary of State. Without them the assessor cannot verify the corporate purpose clause that the statute requires.
- Bylaws and any amendments. The bylaws prove the actual governance and use; a charity that says “religious worship” but has bylaws limited to “social events” loses on the use prong.
- Recorded deed and parcel identification number (PIN). The PIN ties the application to the parcel; a wrong PIN sends the application to the wrong property record card.
- Prior-year AV-10, if any. Counties cross-check year-to-year statements of use, and an inconsistent answer between years is a red flag.
- Written statement of actual use. A short narrative (½ page is fine) describing every room, acre, and outbuilding and how each is used; vague statements like “for ministry” almost always draw a follow-up.
- Photographs of the property and signage. Photos help when the property looks like a house but functions as a parsonage, food pantry, or classroom.
- Lease, license, or use agreement if any other party uses the property. Income-producing use must be disclosed; hiding a paid lease is the single fastest way to lose the exemption under § 105-278.7(c).
- Federal Employer Identification Number (FEIN). The assessor matches the FEIN to the IRS record; a typo here can stall processing for weeks.
- Officer’s contact details and authority (board minutes naming the signer). Only an authorized officer can sign; an unsupported signature voids the application.
Where to Get the Form and How to Access It
The official AV-10 lives on the NCDOR website as a fillable PDF. Always pull the current AV-10 from NCDOR rather than a third-party copy, because counties reject prior-revision forms when a new revision has been issued. The 7-2024 revision is the version you want for the 2026 tax year.
Most counties also post the form on their tax administration page. Wake County, Mecklenburg County, and Guilford County link the same NCDOR PDF and add their own cover letter or attachment list. Use the county link if you are filing in that county so you also pick up the local supplement.
You can complete the form three ways: type into the PDF on a computer, print and write in black ink, or use a county online portal where the county offers one. The typed-PDF route is the cleanest because it avoids the legibility rejections that handwriting causes. Save the completed PDF before printing or uploading; the form does not auto-save.
A misconception that costs filers time is that the AV-10 can be e-mailed to NCDOR. It cannot. NCDOR publishes the form but does not receive it. The completed AV-10 always goes to the county assessor of the county where the property sits, not to Raleigh.
Step-by-Step: How to Fill Out Form AV-10 Line by Line
The AV-10 is one page on its face but expands to several attached schedules when the property has more than one use or more than one statutory basis. Take each box in the order printed on the form. Do not skip ahead.
County and Tax Year Header
The top of the form asks for the County and the Tax Year for which exemption is claimed. Write the county where the property is located, not where the organization’s headquarters sits. The tax year is the calendar year the exemption will apply to, so an application filed in January 2026 covers tax year 2026.
Maria Lopez, treasurer of Grace Community Church in Asheville, writes Buncombe in the County box and 2026 in the Tax Year box. If the church owns parcels in two counties, she files a separate AV-10 with each county; one form cannot cover two counties.
A common mistake here is writing the wrong tax year on a January filing because the calendar just turned. The consequence is that the assessor processes it for the wrong year and the current year stays taxable. The misconception is that the tax year follows the fiscal year of the organization; it does not. North Carolina property tax runs on the calendar year.
Owner’s Name and Mailing Address
This block asks for the legal name of the owner exactly as it appears on the recorded deed. Use the full corporate name, including Inc., Corp., or Trustees of. Do not use a “doing business as” name unless the deed itself uses one.
Marcus Bennett, president of Bright Path Charities Inc., writes Bright Path Charities, Inc. and the corporation’s mailing address 412 Hillsborough St., Raleigh, NC 27603. If mail goes to a P.O. box, list the P.O. box on the mailing-address line, but keep the corporate name identical to the deed.
The most common mistake is using the operating name instead of the title-holding name; counties match owner-of-record on the deed, and a mismatch sends the application to a denial pile. The misconception is that a “trade name” registration with the Secretary of State substitutes for the deed name. It does not.
Parcel Identification Number (PIN) and Property Address
Enter the PIN assigned by the county and the situs address of the property. The PIN is on the property record card and on the prior tax bill. The situs address is the physical location, even if no mail is delivered there.
Aisha Carter, board chair of New Hope Academy, writes PIN 1734-58-9921 and 2200 Eastway Dr., Charlotte, NC 28205. If the property has no street number (vacant land, raw acreage), write “Vacant land off [road name]” and add the deed book and page reference.
A common mistake is copying the tax account number into the PIN box; the two numbers look alike but route differently inside the assessor’s database. The misconception is that the 911 address matches the tax situs; in rural counties the two often differ, and the deed controls.
Statutory Basis for Exemption or Exclusion
The form asks the filer to check the box that names the statute that supports the request. Options include § 105-278.3 (religious purposes), § 105-278.4 (educational), § 105-278.5 (religious educational assemblies), § 105-278.6 (charitable, scientific, literary, or hospital), § 105-278.7 (educational, scientific, literary, charitable, or cultural), § 105-278.8 (charitable hospital), and several historic-property and burying-ground subsections.
Janet Powell, trustee of Old Salem Heritage Trust, checks § 105-278 for a designated historic landmark and attaches the local landmark designation ordinance. Maria from the church above checks § 105-278.3. Aisha from the school checks § 105-278.4 for educational use.
A common mistake is checking § 105-278.7 reflexively because it sounds like a catch-all for charities; it has narrower wholly-and-exclusively-used language than § 105-278.6. The misconception is that any one box covers any nonprofit; each subsection has its own ownership-and-use test described in NCDOR’s property-tax bulletin.
Description of the Property and Specific Use
This is the field that decides the case. Describe each building, parcel, and item of personal property and explain in plain words how each is used during the calendar year. Identify each room or acre and the activity that happens there.
Maria writes: “Sanctuary (4,200 sq. ft.) used for weekly worship; fellowship hall (1,800 sq. ft.) used for Bible study and free community meals; parsonage (2,100 sq. ft.) occupied rent-free by the senior pastor as part of compensation; 1.4 acres of grounds used for parking and outdoor services.” Notice every space is named and every use is named.
The mistake that destroys most applications is vague language like “for our ministry” or “for the work of the charity.” The consequence is that the assessor cannot match the use to the statute and denies the application. The misconception is that a good attitude or a generic mission statement is enough; the statute and case law (including the Property Tax Commission decisions) require concrete, room-by-room facts.
Owner-vs-User Disclosure
The form asks whether the owner is also the user, or whether another party uses the property. If another party uses any part, name that party, describe the relationship, and state whether any rent or fee is paid.
Marcus discloses that Bright Path Charities lets a partner nonprofit, Helping Hands NC, use a single office in the building rent-free under a written license agreement for two days a week. He attaches the license. Aisha discloses that her school is the sole user.
The mistake here is omitting a small or rent-free use because it “doesn’t matter.” Under § 105-278.7(c), even rent-free use by a non-qualifying party can knock out exemption for that portion. The misconception is that “free” use is invisible; it is not, and undisclosed use is a fraud risk.
Income from the Property
Disclose every dollar generated from the property, including parking fees, room-rental fees, vending-machine income, and rooftop antenna leases. List the amount, the payer, and the use of the funds.
Maria reports a $300/year fee paid by a community singing group that rents the fellowship hall on Saturday afternoons; the church uses the funds for utilities. Aisha reports zero income. Marcus reports $0 because Helping Hands pays no rent.
The mistake is treating “incidental” income as zero. Under § 105-278.7(b) “exclusive use” is preserved when the income is incidental and is used to maintain the property; failing to disclose it raises the question of whether use is truly exclusive. The misconception is that income disqualifies exemption automatically. It does not, but it must be disclosed and explained.
Date Acquired and Acquisition Price
Enter the date the owner acquired the property and the purchase price (or fair market value at acquisition for donated property). The assessor uses this to confirm the start date of qualifying use.
Maria writes 09/15/2018 and $725,000. Aisha writes 06/01/2009 and $0 — donated by a private donor; appraised value at acquisition $1,250,000. Marcus writes 03/22/2021 and $1,150,000.
The mistake is leaving the field blank for donated property; “donated” is not a disqualifier, but a blank is. The misconception is that the assessor cares only about current value; the acquisition date matters because exemption can only run forward from when the qualifying ownership-and-use began.
Signature, Title, and Date
The application must be signed by an officer with authority. Print the name, write the title, sign in ink (or apply an electronic signature on the fillable PDF), and date the form.
Maria signs as Maria Lopez, Treasurer, dates it 01/12/2026, and attaches a copy of the church board’s minutes naming her as the authorized signer. Marcus signs as Marcus Bennett, President. Aisha signs as Aisha Carter, Board Chair.
The mistake is letting the executive director sign without board authority documented in writing. Under N.C. corporate law a signature without authority is voidable, and the assessor can reject the application. The misconception is that the person with the keys can sign; only the person with the authority can sign.
Affirmation Block
Above the signature, the AV-10 contains an affirmation that the information is true. Signing under that affirmation is the legal hook for § 105-310 penalties for false statements.
The signer must read every word above the line. A misstatement made under the affirmation is treated as a misdemeanor under § 105-310 and exposes the signer to personal liability separate from the entity. The mistake is treating the affirmation as boilerplate; it is not.
The misconception that costs the most is the idea that if the assessor approves the form, the affirmation no longer matters. It does. The county can audit the use later and revoke exemption retroactively if the affirmation was false.
Three Filled-Out Examples Using Real Scenarios
The walkthroughs below show what each filer enters in the major sections. Each table has exactly two columns and walks the form top-to-bottom.
Example 1: Maria Lopez — Grace Community Church Parsonage (§ 105-278.3)
| Form Section | What Maria Enters |
|---|---|
| County / Tax Year | Buncombe / 2026 |
| Owner Name | Grace Community Church, Inc. |
| Mailing Address | 118 Mountain View Rd., Asheville, NC 28805 |
| PIN / Situs | PIN 9647-21-3340 / 118 Mountain View Rd. |
| Statutory Basis | § 105-278.3 — Religious Purposes |
| Description / Use | Sanctuary, fellowship hall, parsonage occupied rent-free by senior pastor, 1.4 acres of grounds. |
| Owner-User | Owner is the user; community choir uses fellowship hall Saturdays for $300/year. |
| Income | $300/year, used for utilities. |
| Date Acquired / Price | 09/15/2018 / $725,000 |
| Signature / Title / Date | Maria Lopez / Treasurer / 01/12/2026 |
Example 2: Marcus Bennett — Bright Path Charities Inc. (§ 105-278.7)
| Form Section | What Marcus Enters |
|---|---|
| County / Tax Year | Wake / 2026 |
| Owner Name | Bright Path Charities, Inc. |
| Mailing Address | 412 Hillsborough St., Raleigh, NC 27603 |
| PIN / Situs | PIN 1715-09-8842 / 412 Hillsborough St. |
| Statutory Basis | § 105-278.7 — Charitable Use |
| Description / Use | Three-story office: floors 1–2 for charity programs; one office on floor 3 used rent-free by Helping Hands NC two days a week under written license. |
| Owner-User | Owner plus Helping Hands NC (related charitable use, no rent). |
| Income | $0 |
| Date Acquired / Price | 03/22/2021 / $1,150,000 |
| Signature / Title / Date | Marcus Bennett / President / 01/15/2026 |
Example 3: Aisha Carter — New Hope Academy (§ 105-278.4)
| Form Section | What Aisha Enters |
|---|---|
| County / Tax Year | Mecklenburg / 2026 |
| Owner Name | New Hope Academy, Inc. |
| Mailing Address | 2200 Eastway Dr., Charlotte, NC 28205 |
| PIN / Situs | PIN 1734-58-9921 / 2200 Eastway Dr. |
| Statutory Basis | § 105-278.4 — Educational Purposes |
| Description / Use | Two-building K–8 private school: classrooms, gym, library, administrative offices, and 3.2-acre playground/athletic field. |
| Owner-User | Owner is sole user; no third-party use. |
| Income | $0 from property; tuition received elsewhere. |
| Date Acquired / Price | 06/01/2009 / $0 (donated; appraised $1,250,000) |
| Signature / Title / Date | Aisha Carter / Board Chair / 01/20/2026 |
How to File the Completed Form
The completed AV-10 always goes to the county assessor of the county where the property is located. Confirm the assessor’s address on the N.C. Association of Assessing Officers directory or the county tax page.
By mail. Mail the original to the assessor’s office. There is no filing fee for the AV-10 itself. Send by USPS Certified Mail with Return Receipt or by FedEx with tracking. The receipt is your proof of timely filing if the deadline is later disputed. Processing time runs from two weeks in small counties to eight weeks in Mecklenburg and Wake.
In person. Hand-deliver to the assessor’s counter, ask for a date-stamped copy on the spot, and keep that copy for your records. There is no fee, and the date stamp is the strongest possible proof of timely filing.
By county online portal. Wake County’s online listing portal and Mecklenburg’s online business listing system accept exemption uploads from many filers. Charlotte/Mecklenburg also accepts the AV-10 PDF as an attachment to the annual business listing. Save the upload confirmation page; it is your proof. There is no fee. Counties without a portal still require paper.
By fax. Most counties no longer accept fax for new exemption applications because attachments do not transmit cleanly. Call the assessor before faxing.
The AV-10 is due by January 31 of the tax year for which exemption is claimed under § 105-282.1(a). A late application may still be considered for the current year if the Board of County Commissioners approves it under § 105-282.1(a1) for “good cause,” but the standard is high and the relief is discretionary.
What Happens After You File
The assessor reviews the AV-10 and either (1) approves the exemption, (2) denies it, or (3) sends a written request for more information. Approval is typically silent; you may not receive a letter, but the property record card will show “EXEMPT” and no tax bill will be issued in August.
A denial comes by certified letter under § 105-282.1(c). The letter must explain the basis for denial and the appeal rights. You have 30 days from the notice to appeal to the County Board of Equalization and Review, and from there to the N.C. Property Tax Commission.
Once approved, the exemption usually carries forward without an annual re-filing as long as ownership and use stay the same. If anything changes — a new building, a new lease, a new program — file an updated AV-10 in the next listing period. Failing to update is the most common reason exemptions are revoked under audit.
A misconception worth correcting: an approved AV-10 is not permanent. The assessor can audit at any time, and a revocation can reach back to recover taxes for the year the use changed.
Mistakes to Avoid When Filling Out the Form
Each mistake below has produced a denial somewhere in North Carolina in the last five years.
- Filing after January 31 without late-application language. The assessor cannot grant the late application without a request that cites § 105-282.1(a1).
- Using a “doing business as” name instead of the deed name. The owner-of-record check fails and the file is denied.
- Checking the wrong statutory subsection. A church that checks § 105-278.7 instead of § 105-278.3 invites a tougher exclusivity test.
- Vague use descriptions. Words like “for our work” trigger requests for information and missed deadlines.
- Hiding rent-free third-party use. Undisclosed use is a fraud risk and can void the exemption retroactively.
- Skipping income disclosure. Even small income amounts must be reported and explained.
- Wrong PIN. A wrong PIN routes the application to the wrong parcel and the right parcel stays taxable.
- Unauthorized signer. A signature without board authority is voidable.
- No attachments. Missing the IRS letter, articles, or bylaws stalls processing.
- Filing with NCDOR instead of the county. NCDOR will not forward the form, and the deadline can pass before the filer realizes.
- Using an outdated revision of the form. Counties reject prior revisions when a new version is in force.
Do’s and Don’ts
- Do download the official AV-10 every January because revisions appear without notice.
- Do describe each room and acre by name and use; specificity wins.
- Do file by Certified Mail, in person with a date stamp, or through the county portal so you have proof.
- Do attach the IRS determination letter, articles, bylaws, and deed.
- Do disclose every income source, even small ones, and explain the use of the funds.
- Do keep a complete copy of the filed packet for at least seven years.
- Don’t assume 501(c)(3) status creates property-tax exemption automatically.
- Don’t mail the AV-10 to NCDOR; the county assessor receives it.
- Don’t sign without documented board authority.
- Don’t copy last year’s form without re-reading every box; uses change.
- Don’t leave any field blank; write N/A and explain when the field truly does not apply.
- Don’t ignore the assessor’s request for information; missing the response window is treated as a withdrawal.
Filing on Your Own vs. With Help
Many filers complete the AV-10 without help. Others bring in a CPA, property-tax attorney, or experienced consultant. The right call depends on the property’s value, the complexity of the use, and the cost of getting it wrong.
| Pros of Filing on Your Own | Cons of Filing on Your Own |
|---|---|
| No professional fees, often saving $500–$3,000 per filing | Risk of vague use language that triggers denial |
| Faster turnaround when the use is simple and the documents are ready | Risk of choosing the wrong statutory subsection |
| Direct knowledge of the property and its use | Risk of missing the January 31 deadline |
| Builds institutional capacity for future years | Limited ability to argue at the Board of Equalization |
| Confidentiality within the organization | No professional malpractice safety net if something goes wrong |
Hiring help is worth it when the property has mixed use, when income flows through the property, when prior years were denied, or when the value at stake exceeds about $1 million. For straightforward parsonages, single-use classrooms, and pure-charity offices, the do-it-yourself path works for most filers.
Form AV-10 vs. Related Property-Tax Forms
The AV-10 is one of several NCDOR property-tax forms. Filers often confuse it with AV-10A (Antique Airplane Value Exclusion), AV-10V (Veterans), and AV-9 (Elderly or Disabled Homestead).
| Form | Purpose |
|---|---|
| AV-10 | General exemption or exclusion for nonprofit, religious, educational, charitable, hospital, and historic property |
| AV-9 | Homestead exclusion for elderly, disabled, or disabled-veteran homeowners |
| AV-10V | Builder property tax exclusion for residential property held for sale |
| AV-12 | Application for present-use value classification of agricultural, horticultural, or forestland |
| AV-65 | Application for builder’s inventory exclusion under § 105-277.02 |
Key Agencies, Statutes, and Decisions
The NCDOR Property Tax Division publishes the form, writes the Property Tax Bulletins, and trains assessors. The county assessor receives, reviews, and decides each application. The County Board of Equalization and Review hears first-level appeals. The North Carolina Property Tax Commission, sitting as the State Board of Equalization and Review, hears the next appeal, and decisions of the Commission go to the N.C. Court of Appeals.
Two PTC decisions matter most. In re Appeal of Blue Ridge Health Services tightened the wholly and exclusively used test for charitable property by requiring contemporaneous evidence of use, not retrospective affidavits. In re Appeal of Triangle Community Foundation reaffirmed that 501(c)(3) status alone is insufficient and that the property’s actual use must match the statutory subsection.
The federal overlap is narrow. IRS recognition under 501(c)(3) supports a presumption of charitable purpose but does not replace the state ownership-and-use test. Filers should attach the IRS letter as evidence, not as the answer.
FAQs
Is the AV-10 the same form for every county in North Carolina?
Yes. The AV-10 is published by NCDOR and used in every one of the 100 counties, although a few counties attach a local cover sheet for parcel and contact details.
Do I have to refile the AV-10 every year?
No. Once the assessor approves the exemption, it generally carries forward as long as ownership and use do not change; refile only when something material changes.
Is January 31 a hard deadline?
Yes. Under § 105-282.1(a) the application is due during the regular listing period, which closes January 31; later filings need a “good cause” approval from the Board of County Commissioners.
Does a 501(c)(3) letter alone exempt our property?
No. Federal income-tax exemption is separate from North Carolina property-tax exemption; the property must meet the ownership-and-use test in §§ 105-278.3 to 105-278.8.
Can the executive director sign the AV-10?
Yes, if the board has authorized that officer in writing; otherwise the signature is voidable and the application can be denied.
Do I write the trade name or the legal name in the Owner box?
No trade name. Use the legal name on the recorded deed so the owner-of-record check matches.
What goes in the “specific use” box if the property is vacant?
No vague answer. Describe the planned use with a clear timeline; vacant land held for future qualifying use can still qualify under limited circumstances and should cite the statute.
Do I list rent-free use by another nonprofit?
Yes. Even rent-free third-party use must be disclosed because § 105-278.7(c) tests both ownership and use.
Can I file the AV-10 by email to NCDOR?
No. NCDOR publishes the form but does not receive it; file with the county assessor by mail, in person, or county portal.
Does parking-lot income destroy our exemption?
No, if the income is incidental and used to maintain the property; disclose the amount and the use of the funds in the income field.
Do I write the tax account number or the PIN in the property identification box?
No to the tax account number. Enter the PIN from the property record card, because the assessor’s database routes by PIN.
Can a denial be appealed?
Yes. Appeal to the County Board of Equalization and Review within 30 days, then to the N.C. Property Tax Commission, then to the N.C. Court of Appeals.
Is there a fee to file the AV-10?
No. There is no filing fee in any North Carolina county for the AV-10.
Does a parsonage qualify even though a person lives there?
Yes, under § 105-278.3 when the residence is occupied by a minister whose duties require living on or near the church property as part of religious use.
Related reading
- How to Fill Out North Carolina Form AOC-CV-306 (w/Examples) + FAQs
- How to Fill Out North Carolina Form AOC-CVM-201 + FAQs
- How to Fill Out North Carolina Form AOC-E-905 (w/Examples) + FAQs
- How to Fill Out North Carolina Form AV-9 (w/Examples) + FAQs
- How to Fill Out North Carolina Form L-09 (w/Examples) + FAQs
- How to Fill Out North Carolina Form L-12 (w/Examples) + FAQs
- How to Fill Out North Carolina Form AOC-CV-100 (w/Examples) + FAQs