Property Tax Relief Programs
Disabled Veteran Property Tax Exclusion
Disabled Veteran Property Tax Exclusion (G.S. 105-277.1C)
- Eligibility Requirements - Must be permanent residence owned and occupied by an owner who is: a)Honorably discharged disabled veteran (Veteran who as of January 1 has a permanent and total service-connected disability or received benefits for specially adapted housing under 38 U.S.C.2101) or Unmarried surviving spouse of an honorably discharged disabled veteran. No age or income restrictions.
- Application requirements - Requires 1 time application submitted prior to June 1.
- Proof of Disability - Veteran should be able to provide VA award letter or VA response to Veteran’s request for certification. Assessment reduction = 1st $45,000 of value. Deadline to submit application is June 1.
Property Tax Relief for Elderly & Permanently Disabled Persons
Property Tax Relief For Elderly And Permanently Disabled Persons (G.S. 105-277.1)
North Carolina excludes from property taxes the greater of $25,000 or 50% of the appraised value of a permanent residence (including mobile homes) owned and occupied by a qualifying owner. A qualifying owner is 1 who meets all of the following requirements as of January 1 preceding the taxable year for which the benefit is claimed:
- Must be at least 65 years of age or permanently disabled (must have certification from licensed physician).
- Have a total gross income for the preceding calendar year of not more than $29,500. This includes all monies received such as Social Security, VA benefits, interest income etc. other than gifts or inheritances from a spouse, ancestor or descendant. For married applicants residing with their spouse, the income of both spouses must be included even if only 1 is an owner of the property.
- Must be a NC resident. Deadline to submit application is June 1.
Homestead Circuit Breaker Tax Deferment Program
Homestead Circuit Breaker Tax Deferment Program (G.S. 105-277.1B)
- Ownership requirements - Must be 65 years of age or totally and permanently disabled; Must have owned and occupied home as your permanent legal residence for 5 years; Must be a NC resident; Income can not exceed 150% of the income eligibility limit for the Elderly/Disabled Exclusion.
- Tax Limitation - If the income is $29,500 or less, taxes are limited to 4% of income. If income is greater than $29,500 but not more than $44,250 taxes are limited to 5% of income.
- Deferred Taxes - Calculated taxes that exceed the 4% or 5% limit are deferred taxes. Deferred taxes are a lien on the property. Interest accrues on deferred taxes as if they had been payable on the original due dates. Upon a disqualifying event, the last 3 years of deferred taxes preceding the current tax year become due and payable. The only exception is when deferred taxes become due and payable as a result of the death of the owner, in which they become delinquent on the 1st day of the 9th month following the date of death.
- Disqualifying Events Which Trigger Payment (any of the following)
- Death of owner
- Transfer of the property
- Owner ceases to use the property as a permanent residence
- Death is not a disqualifying event if ownership passes to a co-owner or spouse
- Transfer is not a disqualifying event if title passes to a co-owner, or to a spouse as a result of a divorce proceeding