The message below was sent out on July 2nd and has generated a number of questions from recipients. We believe this revised message will help answer those questions.
While the language in the budget bill (reference corrected to Section XXI page 162 below) was not specific, it is our belief that the inspection fees referred to are those that are charged under the authority granted in G.S. 153A-354 for counties or G.S. 160A-414 for municipalities. The language in both of these bills restricts the expenditure of the allowed fees to those expenditures incurred "for support of the administration and activities of the inspection department and for no other purpose".(G.S. 160A-414, identical language included in G.S. 153A-354). One purpose for the separate reporting is to help verify that the funds are being spent as required, so we feel comfortable that these are the only fees to be reported under this new requirement.
If you continue to have questions or concerns, please do not hesitate to contact us at (919) 814-4299.
An item in the 2018 budget bill (S.L. 2018-5, Section XXI, page 162) requires local governments to specifically track building inspection fee revenue and the expending of that revenue. Cities and counties will report the revenue and related expenditures on the AFIR beginning with the report due for June 30, 2019 (S.L. 2018-29, Section 4.5.(a) clarifies that this requirement goes into effect as of June 30, 2019). There will be a specific section on the AFIR for this information. Units should begin tracking this data as of July 1, 2018, in such a manner that will facilitate this reporting requirement at June 30.