Disabled Veterans Tax Relief Bill.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 341

Short Title: Disabled Veterans Tax Relief Bill. (Public)
Sponsors: Representatives Cunningham, Goodwin, and Majeed (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Homeland Security and Military and Veterans Affairs, if favorable, Finance, if
favorable, Rules, Calendar, and Operations of the House
March 11, 2025
*H341-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY THE DISABLED VETERAN PR OPERTY TAX HOMESTEAD 2
EXCLUSION TO EXCLUDE FROM TAXATION THE A PPRAISED VALUE OF A 3
PRIMARY RESIDENCE OW NED BY A DISABLED VE TERAN THAT IS EQUAL TO 4
THE VETERAN'S DISABILITY RATING RANGE. 5
The General Assembly of North Carolina enacts: 6
SECTION 1. G.S. 105-277.1C reads as rewritten: 7
"§ 105-277.1C. Disabled veteran property tax homestead exclusion. 8
(a) Classification. – A permanent residence owned and occupied by a qualifying owner 9
is designated a special class of property under Article V, Section 2(2) of the North Carolina 10
Constitution and is taxable in accordance with this section. The first forty-five thousand dollars 11
($45,000) of appraised value of the residence is excluded from taxation. A qualifying owner who 12
receives an exclusion under this section may not receive other property tax relief. For a disabled 13
veteran, the amount excluded from taxation is equal to the amount listed in the table below based 14
upon the veteran's disability rating: 15
Disability Rating Exclusion Amount 16
70% or greater $100,000 17
50% or greater, but less than 70% $75,000 18
30% or greater, but less than 50% $50,000 19
10% or greater, but less than 30% $25,000 20
(a1) Surviving Spouse Exclusion. – For the surviving spouse of a disabled veteran, the 21
exclusion amount is equal to the greater of (i) the amount excluded under subsection (a) of this 22
section as of the date of the disabled veteran 's death or (ii) the first forty-five thousand dollars 23
($45,000) of appraised value of the permanent residence, provided that the applicant establishes 24
eligibility for such exclusion by providing certification f rom the United States Department of 25
Veterans Affairs that, as of January 1 preceding the taxable year for which the exclusion is 26
claimed, the veteran's death was the result of a service-connected condition. 27
(b) Definitions. – The following definitions apply in this section: 28
(1) Disabled veteran. – A veteran of any branch of the Armed Forces of the United 29
States whose character of service at separation was honorable or under 30
honorable conditions and who satisfies one of the following requirements:has 31
received a certification by the United S tates Department of Veterans Affairs 32
indicating that, as of January 1 preceding the taxable year for which the 33
General Assembly Of North Carolina Session 2025
Page 2 House Bill 341-First Edition
exclusion allowed by this section is claimed, the veteran has been assigned a 1
disability rating for a service-connected condition. 2
a. As of January 1 preceding the taxable year for which the exclusion 3
allowed by this section is claimed, the veteran had received benefits 4
under 38 U.S.C. § 2101. 5
b. The veteran has received a certification by the United States 6
Department of Veterans Affairs or another federal agency indicating 7
that, as of January 1 preceding the taxable year for which the exclusion 8
allowed by this section is claimed, he or she has a service -connected, 9
permanent, and total disability. 10
c. The veteran is deceased and the United States Department of Veterans 11
Affairs or another federal agency has certified that, as of January 1 12
preceding the taxable year for which the exclusion allowed by this 13
section is claimed, the veteran's death was the result of a 14
service-connected condition. 15
… 16
(e) Other Multiple Owners. – This subsection applies to co-owners who are not husband 17
and wife. Each co -owner of a permanent residence must apply separately for the exclusion 18
allowed under this section. 19
When one or more co -owners of a pe rmanent residence qualify for the exclusion allowed 20
under this section and none of the co -owners qualifies for the exclusion allowed under 21
G.S. 105-277.1, each co-owner is entitled to the full amount of the exclusion allowed under this 22
section. The exclusi on allowed to one co -owner may not exceed the co -owner's proportionate 23
share of the valuation of the property, and the amount of the exclusion allowed to all the 24
co-owners may not exceed the exclusion allowed under this section.property. 25
When one or more c o-owners of a permanent residence qualify for the exclusion allowed 26
under this section and one or more of the co -owners qualify for the exclusion allowed under 27
G.S. 105-277.1, each co -owner who qualifies for the exclusion allowed under this section is 28
entitled to the full amount of the exclusion. The exclusion allowed to one co -owner may not 29
exceed the co-owner's proportionate share of the valuation of the property, and the amount of the 30
exclusion allowed to all the co-owners may not exceed the greater of the exclusion allowed under 31
this section and the exclusion allowed under G.S. 105-277.1. 32
(f) Application. – An application for the exclusion allowed under this section should be 33
filed during the regular listing period, but may be filed and must be accepted at any time up to 34
and through June 1 preceding the tax year for which the exclusion is claimed. An applicant for 35
an exclusion under this section must establish eligibility for the exclusion by providing a copy of 36
the veteran's disability certification or e vidence of benefits received under 38 U.S.C. § 37
2101.certification." 38
SECTION 2. This act is effective for taxes imposed for taxable years beginning on 39
or after July 1, 2025. 40