Property Tax Relief Study.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 2
HOUSE BILL 432
Committee Substitute Favorable 4/15/25

Short Title: Property Tax Relief Study. (Public)
Sponsors:
Referred to:
March 19, 2025
*H432-v-2*
A BILL TO BE ENTITLED 1
AN ACT TO DIRECT THE REVENUE LAWS STUDY COMMITTEE TO EXAMINE THE 2
CURRENT PROPERTY TAX RELIEF PROGRAMS FOR ELDERLY, DISABLED, AND 3
DISABLED VETERAN HOM EOWNERS; TO EVALUATE WHETHER ANY 4
MODIFICATIONS SHOULD BE MADE TO REDUCE THE PROPERTY TAX BURDEN 5
ON THOSE HOMEOWNERS; TO CONSIDER OTHER P ROPERTY TAX REFORMS; 6
AND TO REPORT ITS FINDINGS AND RECOMMENDATIONS, IF ANY, TO THE 2026 7
REGULAR SESSION OF THE GENERAL ASSEMBLY. 8
The General Assembly of North Carolina enacts: 9
SECTION 1. The Revenue Laws Study Committee is directed to study options for 10
enhancing the property tax relief currently afforded to low-income, elderly, and disabled citizens 11
and disabled veterans and consider other property tax reforms that may reduce the propert y tax 12
burden while balancing the potential impact on local government revenues. In conducting the 13
study, the Committee may do the following: 14
(1) Examine the following property tax relief programs currently available for 15
certain homeowners: (i) elderly or disabled property tax homestead exclusion 16
(G.S. 105-277.1), (ii) property tax homestead circuit breaker 17
(G.S. 105-277.1B), and (iii) disabled veteran property tax homestead 18
exclusion (G.S. 105-277.1C). 19
(2) Evaluate options that could provide additional prop erty tax relief under the 20
programs listed in subdivision (1) of this section, such as: 21
a. Increasing the exclusion amounts. 22
b. Increasing the income threshold or examining the definition of 23
"income." 24
c. With respect to the circuit breaker, modifying the de ferred tax 25
obligation or the age and disability requirements, raising the income 26
limit, or tying the income limit to a percentage of area median income. 27
(3) Consider mechanisms that would expand property tax relief to homeowners 28
more broadly, such as limit ing year -to-year property tax increases and 29
valuation growth, providing homeowners with alternative payment plans, or 30
implementing methods, such as annual statistical adjustments, to capture 31
year-over-year property valuation changes to minimize the impact of 32
reappraisals. 33
(4) Examine the uniformity requirement in Article V, Section 2 of the North 34
Carolina Constitution and evaluate whether to amend the North Carolina 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 432-Second Edition
Constitution to allow counties the option of making one or more of these 1
changes at the local level. 2
(5) Consider the positive and negative impacts on local government ad valorem 3
tax revenues of providing additional property tax relief and whether the State 4
should reimburse local governments or provide local governments with 5
additional revenue -generating authority to backfill lost revenue due to 6
enhanced property tax relief. As part of this consideration, the Committee may 7
seek input from the North Carolina Association of County Commissioners or 8
the North Carolina League of Municipalities. 9
(6) Review property tax relief programs in other states. 10
The Committee may consult with any other relevant State, local, or private entity in 11
conducting the study required by this act. The Committee must report its findings, along with 12
any legislative recommendations, to the 2026 Regular Session of the 2025 General Assembly. 13
SECTION 2. This act is effective when it becomes law. 14