North Carolina Investors Avoid Property Taxes Through Legal Loophole

Millions in tax revenue lost annually in Durham and Orange counties due to Blue Ridge Housing exemption

Apr. 8, 2026 at 5:16pm

Got story updates? Submit your updates here. ›

A photorealistic painting of a multi-story apartment building in muted earth tones, with warm sunlight streaming through the windows and deep shadows across the facade, conveying a sense of quiet contemplation about the impact of a tax loophole on local communities.The Blue Ridge Housing tax exemption casts a long shadow over the budgets of North Carolina's urban centers.Today in Raleigh

A state law loophole is allowing real estate investors in several North Carolina cities, including Durham and Raleigh, to avoid paying millions in property taxes each year. The Blue Ridge Housing exemption allows investors to register their properties under a non-profit organization, effectively shielding them from local taxes.

Why it matters

The lost tax revenue impacts the budgets of local governments, reducing funds available for public services, infrastructure, and community programs. Critics argue the loophole unfairly benefits investors over regular homeowners and renters.

The details

The Blue Ridge Housing exemption allows investors to register their properties under a non-profit organization, effectively shielding them from local property taxes. Estimates suggest this loophole costs Durham, Raleigh, and three other major North Carolina cities a combined $60 million in lost revenue annually.

  • The Blue Ridge Housing exemption has been in place for several years.
  • Local officials have been pushing for the state legislature to close this loophole, but efforts have so far been unsuccessful.

The players

Blue Ridge Housing

A non-profit organization that real estate investors use to register their properties and avoid paying local property taxes.

Durham City Council

Local government officials in Durham who are seeking to close the Blue Ridge Housing loophole and recoup lost tax revenue for the city.

Got photos? Submit your photos here. ›

What they’re saying

“This loophole is costing our city millions in much-needed tax revenue. It's an unfair advantage that benefits investors over regular homeowners and renters.”

— Sheila Antrim, Durham City Council Member

What’s next

Durham and other affected cities plan to continue lobbying the state legislature to close the Blue Ridge Housing tax exemption loophole.

The takeaway

This case highlights the need for state and local governments to closely examine tax policies and close any loopholes that unfairly benefit certain groups over others, especially when it comes to funding vital public services.