North Carolina HB 59: Projects in Rowan County/Funds.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 2
HOUSE BILL 59
Committee Substitute Favorable 6/25/25

Short Title: Modify Homestead Exclusions. (Public)
Sponsors:
Referred to:
February 6, 2025
*H59-v-2*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY THE INCOME ELIGIBILITY LIMIT FOR THE ELDERLY OR 2
DISABLED PROPERTY TAX HOMESTEAD EXCLUSION FOR MARRIED COUPLES, 3
TO ELIMINATE THE DEFERRED TAX LIABILITY UNDER THE PROPERTY TAX 4
HOMESTEAD CIRCUIT BREAKER, AND TO EXPAND THE PROPERTY TAX 5
HOMESTEAD CIRCUIT BREAKER BY PROVIDING AN ALTERNATE MEANS TO 6
QUALIFY BASED ON AREA MEDIAN INCOME. 7
The General Assembly of North Carolina enacts: 8
SECTION 1.(a) G.S. 105-277.1 is amended by adding a new subsection to read: 9
"(a3) Spousal Income Limitation. – Married applicants residing with their spouses may 10
qualify for the property tax homestead exclusion provided in this section if their income does not 11
exceed one hundred fifteen percent (115%) of the income eligibility limit determined under 12
subsection (a2) of this section." 13
SECTION 1.(b) G.S. 105-277.1B reads as rewritten: 14
"§ 105-277.1B. Property tax homestead circuit breaker. 15
(a) Classification. – A permanent residence owned and occupied by a qualifying owner 16
is designated a special class of property under Article V, Section 2(2) of the North Carolina 17
Constitution and is taxable in accordance with this section. 18
(b) Definitions. – The definitions provided in G.S. 105-277.1 apply to this section. 19
(c) Income Eligibility Limit. – The income eligibility limit provided in 20
G.S. 105-277.1(a2) applies to this section. 21
(c1) AMI Limit. – Seventy percent (70%) of the area median income for a household of 22
two persons in the county in which the property is located, as determined by the most recent 23
figure reported by the United States Department of Housing and Urban Development as of 24
January 1 preceding the taxable year for which the benefit is claimed. 25
(d) Qualifying Owner. – For the purpose of qualifying for the property tax homestead 26
circuit breaker under this section, a qualifying owner is an owner who meets all of the following 27
requirements as of January 1 preceding the taxable year for which the benefit is claimed: 28
(1) The owner has an income for the preceding calendar year of not more than 29
one hundred fifty percent (150%) of the income eligibility limit specified 30
maximum amount authorized in subsection (c) subsection (f) or (f1) of this 31
section.section, as applicable. 32
(2) The owner has owned and occupied the property as a permanent residence for 33
at least five consecutive years and has occupied the property as a permanent 34
residence for at least five years.the required amount of time under subsection 35
(f) or (f1) of this section, as applicable. 36

General Assembly Of North Carolina Session 2025
Page 2 House Bill 59-Second Edition
(3) The owner is at least 65 years of age or totally and permanently disabled. 1
(4) The owner is a North Carolina resident. 2
(e) Multiple Owners. – A permanent residence owned and occupied by husband and wife 3
is entitled to the full benefit of the property tax homestead circuit breaker notwithstanding that 4
only one of them meets the length of occupancy and ownership requirements and the age or 5
disability requirement of this section. When a permanent residence is owned and occupied by 6
two or more persons other than husband and wife, no property tax homestead circuit breaker is 7
allowed unless all of the owners qualify and elect to defer taxes under this section. 8
(f) General Tax Limitation. – A qualifying owner may defer that has owned the property 9
as a permanent residence for at least five consecutive years and has occupied the property as a 10
permanent residence for at least five years is relieved of the portion of the principal amount of 11
tax that is imposed for the current tax year on his or her permanent residence and exceeds the 12
percentage of the qualifying owner's income set out in the table in this subsection. If a permanent 13
residence is subject to tax by more than one taxing unit and the total tax liability exceeds the tax 14
limit imposed by this section, then both the taxes due under this section and the taxes deferred 15
under this section must be apportioned among the taxing units based upon the ratio each taxing 16
unit's tax rate bears to the total tax rate of all units. 17
Income Over Income Up To Percentage 18
-0- Income Eligibility Limit 4.0% 19
Income Eligibility Limit 150% of Income Eligibility Limit 5.0% 20
(f1) Alternate Tax Limitation. – A qualifying owner that has owned the property as a 21
permanent residence for at least 10 consecutive years and has occupied the property as a 22
permanent residence for at least 10 years is relieved of the portion of the principal amount of tax 23
that is imposed for the current tax year on his or her permanent residence and exceeds the 24
percentage of the qualifying owner's income set out in the