North Carolina HB 1092: Health Care Funding Requests/COVID-19 - 2.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 1092

Short Title: Reform NC Property Tax. (Public)
Sponsors: Representatives Ager, Longest, Buansi, and Johnson-Hostler (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
April 30, 2026
*H1092-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO AMEND THE CONSTITUTION OF NORTH CAROLINA TO ALLOW 2
PROPERTY TAX EXEMPTIONS BASED UPON AREA MEDIAN INCOME; TO 3
MODIFY THE PROPERTY TAX HOMESTEAD CIRCUIT BREAKER; TO UPDATE 4
AND MODIFY THE NONPROFIT LOW- OR MODERATE-INCOME HOUSING 5
PROPERTY TAX EXEMPTION; AND TO PROVIDE GRANT FUNDING TO THE 6
NORTH CAROLINA ASSOCIATION OF COUNTY COMMISSIONERS TO SUPPORT 7
MORE FREQUENT PROPERTY REAPPRAISALS. 8
The General Assembly of North Carolina enacts: 9
10
AREA MEDIAN INCOME CONSTITUTIONAL AMENDMENT 11
SECTION 1.(a) Section 2 of Article V of the North Carolina Constitution reads as 12
rewritten: 13
"Sec. 2. State and local taxation. 14
... 15
(3) Exemptions. Property belonging to the State, counties, and municipal corporations 16
shall be exempt from taxation. The General Assembly may exempt cemeteries and property held 17
for educational, scientific, literary, cultural, charitable, or religious purposes, and, to a value not 18
exceeding $300, any personal property. The General Assembly may exempt from taxation not 19
exceeding $1,000 in value of property held and used as the place of residence of the owner. Every 20
exemption shall be on a State-wide basis and shall be made by general law uniformly applicable 21
in every county, city and town, and other unit of local government. No taxing authority other 22
than the General Assembly may grant exemptions, and the General Assembly shall not delegate 23
the powers accorded to it by this subsection. The General Assembly may use area median income 24
as a criterion for affording property tax relief on a statewide basis by a general law uniformly 25
applicable in every county, city and town, and other unit of local government. 26
...." 27
SECTION 1.(b) The amendment set out in subsection (a) of this section shall be 28
submitted to the qualified voters of the State at a statewide general election to be held on 29
November 3, 2026, which election shall be conducted under the laws then governing elections in 30
the State. The question to be used in the voting systems and ballots shall be: 31
"[ ] FOR [ ] AGAINST 32
Constitutional amendment to allow the General Assembly to use area median income 33
as a criterion for affording property tax relief on a statewide basis." 34

General Assembly Of North Carolina Session 2025
Page 2 House Bill 1092-First Edition
SECTION 1.(c) The State Board of Elections shall certify the results of the 1
referendum conducted under subsection (b) of this section. If a majority of votes cast on the 2
question are in favor of the amendment set out in subsection (a) of this section, the Secretary of 3
State shall enroll the amendment among the permanent records of that office. If a majority of 4
votes cast on the question are against the amendment set out in subsection (a) of this section, the 5
amendment shall have no effect. 6
SECTION 1.(d) If the certification from the State Board of Elections under 7
subsection (c) of this section reflects that a majority of votes cast on the question are in favor of 8
the amendment set out in subsection (a) of this section, the amendment set out in subsection (a) 9
of this section is effective upon certification. 10
11
PROPERTY TAX HOMESTEAD CIRCUIT BREAKER MODIFICATIONS 12
SECTION 2. G.S. 105-277.1B reads as rewritten: 13
"§ 105-277.1B. Property tax homestead circuit breaker. 14
(a) Classification. – A permanent residence owned and occupied by a qualifying owner 15
is designated a special class of property under Article V, Section 2(2) of the North Carolina 16
Constitution and is taxable in accordance with this section. 17
(b) Definitions. – The definitions provided in G.S. 105-277.1 apply to this section. 18
(c) Income Eligibility Limit. – The income eligibility limit provided in G.S. 19
105-277.1(a2) applies to this section.is equal to (i) one hundred percent (100%) of the area 20
median income of the county in which the permanent residence is located for a non-married 21
qualifying owner and (ii) one hundred fifteen percent (115%) of the area median income of the 22
county in which the permanent residence is located for a married qualifying owner. 23
(d) Qualifying Owner. – For the purpose of qualifying for the property tax homestead 24
circuit breaker under this section, a qualifying owner is an owner who meets all of the following 25
requirements as of January 1 preceding the taxable year for which the benefit is claimed: 26
(1) The owner has an income for the preceding calendar year of not more than 27
one hundred fifty percent (150%) of the income eligibility limit specified in 28
subsection (c) of th