North Carolina HB 1179: Funds/OSC Accounting System Upgrade.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1179

Short Title: Senior Property Tax Relief Modernization Act. (Public)
Sponsors: Representatives Rubin, Ager, Cervania, and Carney (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Rules, Calendar, and Operations of the House
May 4, 2026
*H1179-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY THE ELDERLY OR DISABLED PROPERTY TAX HOMESTEAD 2
EXCLUSION, TO EXPAND THE PROPERTY TAX HOMESTEAD CIRCUIT BREAKER 3
AND TO REIMBURSE LOCAL GOVERNMENTS FOR THEIR RESULTING REVENUE 4
LOSS, AND TO PROVIDE GRANT FUNDING TO THE NORTH CAROLINA 5
ASSOCIATION OF COUNTY COMMISSIONERS TO SUPPORT MORE FREQUENT 6
PROPERTY TAX REAPPRAISALS. 7
Whereas, property taxes fund essential local services, including public schools, public 8
safety, and infrastructure; and 9
Whereas, rapidly rising home values have increased property tax burdens, particularly 10
for seniors and disabled homeowners living on fixed or limited incomes; and 11
Whereas, current property tax relief programs contain a sharp income cutoff that 12
denies all relief to homeowners just above the eligibility threshold, creating inequitable 13
outcomes; and 14
Whereas, modernizing the homestead exemption to provide a gradual, income-based 15
phaseout will expand access to relief while eliminating an unfair benefits "cliff"; and 16
Whereas, allowing eligible homeowners to combine the homestead exemption with 17
the circuit breaker program will provide more complete and effective protection against 18
unaffordable tax burdens for people on fixed or limited incomes; and 19
Whereas, addressing barriers faced by residents with heirs' property or shared 20
ownership will ensure that relief reaches those who are responsible for maintaining and paying 21
for their homes; and 22
Whereas, reimbursing local governments for the cost of expanded relief will preserve 23
funding for essential local services; Now, therefore, 24
The General Assembly of North Carolina enacts: 25
SECTION 1.(a) G.S. 105-277.1 reads as rewritten: 26
"§ 105-277.1. Elderly or disabled property tax homestead exclusion. 27
(a) Exclusion. – A permanent residence owned and occupied by a qualifying owner is 28
designated a special class of property under Article V, Sec. 2(2) of the North Carolina 29
Constitution and is taxable in accordance with this section. The amount of the appraised value of 30
the residence equal to the exclusion amount is excluded from taxation. The exclusion amount is 31
the greater of twenty five thousand dollars ($25,000) or fifty percent (50%) of the appraised value 32
of the residence. An owner who receives an exclusion under this section may not receive other 33
property tax relief.Qualifying owners (i) with an income at or below fifty-five percent (55%) of 34
State median income shall receive the full exclusion amount of property tax relief provided under 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 1179-First Edition
this section, (ii) with an income between fifty-five percent (55%) and eighty percent (80%) of 1
State median income, the exclusion begins at one hundred percent (100%) of the exclusion 2
amount of property tax relief provided under this section, and is reduced by three and thirty-three 3
hundredths percent (3.33%) for every one percent (1%) of income above the fifty-five percent 4
(55%) threshold, and (iii) with an income at or above eighty percent (80%) of State median 5
income, no property tax relief is allowed under this section. 6
A qualifying owner is an owner who meets all of the following requirements as of January 1 7
preceding the taxable year for which the benefit is claimed: 8
(1) Is at least 65 years of age or totally and permanently disabled. 9
(2) Has an income for the preceding calendar year of not more than the income 10
eligibility limit.State median income. 11
(3) Is a North Carolina resident. 12
... 13
(a2) Income Eligibility Limit. – For the taxable year beginning on July 1, 2008, the income 14
eligibility limit is twenty-five thousand dollars ($25,000). For taxable years beginning on or after 15
July 1, 2009, the income eligibility limit is the amount for the preceding year, adjusted by the 16
same percentage of this amount as the percentage of any cost-of-living adjustment made to the 17
benefits under Titles II and XVI of the Social Security Act for the preceding calendar year, 18
rounded to the nearest one hundred dollars ($100.00). On or before July 1 of each year, the 19
Department of Revenue must determine the income eligibility amount to be in effect for the 20
taxable year beginning the following July 1 and must notify the assessor of each county of the 21
amount to be in effect for that taxable year. 22
(a3) Additional Relief. – An owner who receives an exclusion under this section may also 23
receive property tax relief under G.S. 105-277.1B provided that the owner meets the 24
requirem