North Carolina HB 1597: Index Homestead Exemption.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1989

H 2

HOUSE BILL 1597
Committee Substitute Favorable 6/21/89

Short Title: Index Homestead Exemption. (Public)
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Sponsors:
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Referred to:
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May 4, 1989

A BILL TO BE ENTITLED 1
AN ACT TO INDEX THE AMOUNT OF THE PROPERTY TAX HOMESTEAD 2
EXEMPTION AND THE AMOUNT OF THE INCOME LIMIT FOR 3
ELIGIBILITY FOR THE EXEMPTION. 4
The General Assembly of North Carolina enacts: 5
Section 1. G.S. 105-277.1 reads as rewritten: 6
"§ 105-277.1. Property classified for taxation at reduced valuation. 7
(a) The following class of property Real property or a manufactured home owned 8
and occupied by a qualifying owner as the owner's permanent residence is designated a 9
special class of property under Article V, Sec. 2(2) of the North Carolina Constitution 10
and shall be assessed for taxation as follows. is taxable in accordance with this section. 11
The amount of the appraised value of a permanent residence that equals the index 12
amount for the county in which the residence is located is excluded from taxation. 13
The index amount is fifteen thousand dollars ($15,000) for each county until the 14
county's first horizontal adjustment or reappraisal of real property that is effective for 15
taxable years beginning on or after January 1, 1991. Upon the effective date of a 16
county's horizontal adjustment or reappraisal effective for taxable years beginning on or 17
after January 1, 1991, the index amount for that county is the amount in effect before 18
the effective date of the horizontal adjustment or reappraisal plus or minus a percentage 19
of this amount that equals the average percentage increase or decrease in the appraised 20
value of real property in the county resulting from the horizontal adjustment or 21
reappraisal, rounded to the nearest one hundred dollars ($100.00). The index amount 22
effective upon a county's horizontal adjustment or reappraisal remains the county's 23

GENERAL ASSEMBLY OF NORTH CAROLINA 1989
Page 2 HOUSE BILL 1597 version 2
index amount until the county's next horizontal adjustment of residential property or 1
revaluation. 2
The Department of Revenue shall determine the percentage increase or decrease in 3
real property values resulting from a horizontal adjustment or reappraisal from sales 4
assessment ratio studies made under G.S. 105-289(h), shall calculate a new index 5
amount to be in effect in a county when a horizontal adjustment or reappraisal becomes 6
effective in the county, and shall notify the assessor of the county of the new amount by 7
April 15 of the year in which the amount becomes effective. The first twelve thousand 8
dollars ($12,000) in assessed value of real property, or a mobile home, owned by a North 9
Carolina resident and occupied by the owner as his permanent residence shall not be assessed 10
for taxation if, as of January 1 of the year for which the benefit of this section is claimed: 11
(1) The owner is either 65 years of age or older or is totally and 12
permanently disabled; and 13
(2) The owner's disposable income for the preceding calendar year did not 14
exceed eleven thousand dollars ($11,000); and 15
(3) The owner makes the required application. 16
For married applicants residing with their spouses, the disposable income of both 17
spouses must be included, whether or not the property is in both names. 18
(a1) A ‘qualifying owner' is an owner who, as of January 1 of the taxable year for 19
which the benefit of this section is claimed: 20
(1) Was a North Carolina resident; 21
(2) Was at least 65 years old or totally and permanently disabled; and 22
(3) Had an aggregate household income for the immediately preceding 23
calendar year of not more than the income eligibility amount. 24
The income eligibility limit is the same for every county. Until taxable year 1991, 25
the limit is eleven thousand dollars ($11,000). For taxable years beginning on or after 26
January 1, 1991, the limit is the amount for the preceding year increased by the same 27
percentage of this amount as the percentage by which the federal government increased 28
the benefits under Titles II and XVI of the Social Security Act during the calendar year 29
preceding the year in which the determination of a new income limit is made, rounded 30
to the nearest one hundred dollars ($100.00). On or before June 10 of each year the 31
Department of Revenue shall determine the amount to be in effect for the taxable year 32
beginning the following January 1 and shall notify the assessor of each county of the 33
amount to be in effect for that taxable year. 34
(b) Definitions. – When used in this section, the following definitions shall 35
apply: 36
(1) ‘Aggregate household income' means the total disposable 37
income of all the persons who maintain a permanent residence in the 38
same household. 39
(2) ‘Disposable income' means adjusted g