Elderly/Disabled Prop. Tax Mods.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 950

Short Title: Elderly/Disabled Prop. Tax Mods. (Public)
Sponsors: Representative Wheatley.
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Finance, if favorable, Rules, Calendar, and Operations of the House
April 14, 2025
*H950-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY THE ELDERLY OR DISABLED PROPERTY TAX HOMEST EAD 2
EXCLUSION TO INCREASE THE AGE REQUIREMENT, TO REMOVE THE INCOME 3
ELIGIBILITY LIMIT, A ND TO EXCLUDE FROM T AXATION ONE HUNDRED 4
PERCENT OF THE APPRA ISED VALUE OF THE RESIDENCE, AND TO MA KE A 5
CONFORMING CHANGE NECESSARY TO IMPLEMENT THOSE CHANGES. 6
The General Assembly of North Carolina enacts: 7
SECTION 1. G.S. 105-277.1 reads as rewritten: 8
"§ 105-277.1. Elderly or disabled property tax homestead exclusion. 9
(a) Exclusion. – A permanent residence owned and occupied by a qualifying owner is 10
designated a special class of property under Article V, Sec. 2(2) of the North Carolina 11
Constitution and is taxable in accordance with this section. The amount of the appraised value of 12
the residence equal to the exclusion amount is excluded from taxation. The exclusion amount is 13
the greater of twenty five thousand dollars ($25,000) or fifty one hundred percent (50%) (100%) 14
of the appraised value of the residence. An owner who re ceives an exclusion under this section 15
may not receive other property tax relief. 16
A qualifying owner is an owner who meets all of the following requirements as of January 1 17
preceding the taxable year for which the benefit is claimed: 18
(1) Is at least 65 70 years of age or totally and permanently disabled. 19
(2) Has an income for the preceding calendar year of not more than the income 20
eligibility limit. 21
(3) Is a North Carolina resident. 22
… 23
(a2) Income Eligibility Limit. – For the taxable year beginning on July 1, 2008, the income 24
eligibility limit is twenty-five thousand dollars ($25,000). For taxable years beginning on or after 25
July 1, 2009, the income eligibility limit is the amount for the preceding year, adjusted by the 26
same percentage of this amount as the p ercentage of any cost -of-living adjustment made to the 27
benefits under Titles II and XVI of the Social Security Act for the preceding calendar year, 28
rounded to the nearest one hundred dollars ($100.00). On or before July 1 of each year, the 29
Department of Re venue must determine the income eligibility amount to be in effect for the 30
taxable year beginning the following July 1 and must notify the assessor of each county of the 31
amount to be in effect for that taxable year. 32
… 33
(c) Application. – An application for the exclusion provided by this section should be 34
filed during the regular listing period, but may be filed and must be accepted at any time up to 35
General Assembly Of North Carolina Session 2025
Page 2 House Bill 950-First Edition
and through June 1 preceding the tax year for which the exclusion is claimed. When property is 1
owned by two or more persons other than husband and wife and one or more of them qualifies 2
for this exclusion, each owner must apply separately for his or her proportionate share of the 3
exclusion. 4
(1) Elderly Applicants. – Persons 65 70 years of age or older may apply fo r this 5
exclusion by entering the appropriate information on a form made available 6
by the assessor under G.S. 105-282.1. 7
…." 8
SECTION 2. G.S. 105-277.1B reads as rewritten: 9
"§ 105-277.1B. Property tax homestead circuit breaker. 10
… 11
(c) Income Eligibility Lim it. – The income eligibility limit provided in G.S. 12
105-277.1(a2) applies to this section.For the taxable year beginning on July 1, 2008, the income 13
eligibility limit is twenty-five thousand dollars ($25,000). For taxable years beginning on or after 14
July 1, 2009, the income eligibility limit is the amount for the preceding year, adjusted by the 15
same percentage of this amount as the percentage of any cost -of-living adjustment made to the 16
benefits under Titles II and XVI of the Social Security Act for the pr eceding calendar year, 17
rounded to the nearest one hundred dollars ($100.00). On or before July 1 of each year, the 18
Department of Revenue must determine the income eligibility amount to be in effect for the 19
taxable year beginning the following July 1 and mu st notify the assessor of each county of the 20
amount to be in effect for that taxable year. 21
…." 22
SECTION 3. This act is effective for taxes imposed for taxable years beginning on 23
or after July 1, 2026. 24