Veterans Appreciation Act.

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 109

Short Title: Veterans Appreciation Act. (Public)
Sponsors: Senators Lazzara, Lee, and Sawrey (Primary Sponsors).
Referred to: Rules and Operations of the Senate
February 18, 2025
*S109-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO INCREASE T HE PROPERTY TAX HOME STEAD EXCLUSION AMOU NT 2
FOR DISABLED VETERANS TO ALLOW FOR THE EXCLUSION OF APPRECIATION 3
OF THE APPRAISED VAL UE OF THE PERMANENT RESIDENCE ATTRIBUTABLE 4
TO HOUSING GRANT FUN DING FROM THE UNITED STATES DEPARTMENT OF 5
VETERANS AFFAIRS AND TO ALLOW DISABLED V ETERANS TO PREQUALIF Y 6
FOR THE DISABLED VETERAN PROPERTY TAX HOMESTEAD EXCLUSION. 7
The General Assembly of North Carolina enacts: 8
SECTION 1. G.S. 105-277.1C reads as rewritten: 9
"§ 105-277.1C. Disabled veteran property tax homestead exclusion. 10
(a) Classification. – A permanent residence owned and occupied by a qualifying owner 11
is designated a special class of property under Article V, Section 2(2) of the North Carolina 12
Constitution and is taxable in accordance with this section. The amount excluded from taxation 13
is the first forty-five thousand dollars ($45,000) of appraised value of the residence is excluded 14
from taxation. plus any portion of the appraised value of the residence attributable to adaptations 15
for the qualifying owner's medical needs if the adaptations were funded by a housing grant from 16
the United States Department of Veterans Affairs for one or more service-connected disabilities. 17
A qualifying owner who receives an exclusion under this section may not receive other property 18
tax relief. 19
… 20
(f) Application. – An application for the exclusion allowed under this section should be 21
filed during the regular listing period, but may be filed and must be accepted at any time up to 22
and through June 1 preceding the tax year for which the exclusion is claimed. An applicant for 23
an exclusion under this section must establish eligibility for the exclusion by providing a copy of 24
the veteran's disability certification or evidence of benefits received under 38 U.S.C. § 2101. An 25
applicant who has prequalified pursuant to subsection ( g) of this section may provide a copy of 26
the prequalification notice provided by the assessor under subsection ( g) of this section to 27
establish eligibility for the exclusion p rovided in this section in lieu of a veteran 's disability 28
certification or evidence of benefits received under 38 U.S.C. § 2101. 29
(g) Prequalification. – A disabled veteran may apply for prequalification of the property 30
tax relief provided by this section notwithstanding that the veteran is not an owner of a permanent 31
residence at the time that the veteran's application for prequalification is submitted. It is the intent 32
of the General Assembly to allow taxpayers and lenders to determine, in advance of the purchase 33
of a primary residence , the availability of the tax benefit provided by this section in order to 34
facilitate omitting exempted amounts from determinations of payment calculations. An 35
application for prequalification under this subsection may be filed at any time and must be 36
General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 109-First Edition
submitted on a form approved by the Department. Application forms under this subsection must 1
be made available by the assessor . Upon receipt of an application under this subsection , the 2
assessor of the county in which the application is filed must notify the applicant of the applicant's 3
qualification for eligibility for property tax relief under this section within 30 days. Upon 4
purchasing a permanent residence, an applicant who has received prequalification under this 5
subsection must apply for the property tax relief provided by this s ection as required under 6
subsection (f) of this section." 7
SECTION 2. This act is effective for taxes imposed for taxable years beginning on 8
or after July 1, 2025. 9