North Carolina SB 349: Property Tax Modifications.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 349

Short Title: Property Tax Modifications. (Public)
Sponsors: Senators Overcash, Johnson, and Sawrey (Primary Sponsors).
Referred to: Rules and Operations of the Senate
March 20, 2025
*S349-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY THE INCOME ELIGIBILITY LIMIT FOR THE ELDERLY OR 2
DISABLED PROPERTY TAX HOMESTEAD EXCLUSION, AND TO ELIMINATE THE 3
DEFERRED TAX LIABILITY UNDER THE PROPERTY TAX HOMESTEAD CIRCUIT 4
BREAKER AND TO MAKE CONFORMING CHANGES NECESSARY TO 5
IMPLEMENT THAT CHANGE. 6
The General Assembly of North Carolina enacts: 7
SECTION 1.(a) G.S. 105-277.1 reads as rewritten: 8
"§ 105‑277.1. Elderly or disabled property tax homestead exclusion. 9
... 10
(a2) Individual Income Eligibility Limit. – For the taxable year beginning on July 1, 2008, 11
the individual income eligibility limit is twenty‑five thousand dollars ($25,000). For taxable 12
years beginning on or after July 1, 2009, the individual income eligibility limit is the amount for 13
the preceding year, adjusted by the same percentage of this amount as the percentage of any 14
cost‑of‑living adjustment made to the benefits under Titles II and XVI of the Social Security Act 15
for the preceding calendar year, rounded to the nearest one hundred dollars ($100.00). On or 16
before July 1 of each year, the Department of Revenue must determine the individual income 17
eligibility amount to be in effect for the taxable year beginning the following July 1 and must 18
notify the assessor of each county of the amount to be in effect for that taxable year. 19
(a3) Joint Income Eligibility Limit. – The joint income eligibility limit is equal to one 20
hundred fifteen percent (115%) of the income eligibility limit under subsection (a2) of this section 21
for the taxable year. 22
(b) Definitions. – The following definitions apply in this section: 23
(1) Code. – The Internal Revenue Code, as defined in G.S. 105-228.90. 24
(1a) Income. – All moneys received from every source other than gifts or 25
inheritances received from a spouse, lineal ancestor, or lineal descendant. For 26
married applicants residing with their spouses, the income of both spouses 27
must be included, whether or not the property is in both names. 28
(1b) Joint income. – The combined income of both spouses who are married and 29
residing together, irrespective of whether the property is in both names. 30
(1b)(1c) Owner. – A person who holds legal or equitable title, whether individually, 31
as a tenant by the entirety, a joint tenant, or a tenant in common, or as the 32
holder of a life estate or an estate for the life of another. A manufactured home 33
jointly owned by husband and wife is considered property held by the entirety. 34
(2) Repealed by Session Laws 1993, c. 360, s. 1. 35
(2a) Repealed by Session Laws 1985 (Reg. Sess., 1986), c. 982, s. 20. 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 349-First Edition
(3) Permanent residence. – A person's legal residence. It includes the dwelling, 1
the dwelling site, not to exceed one acre, and related improvements. The 2
dwelling may be a single family residence, a unit in a multi-family residential 3
complex, or a manufactured home. 4
(3a) Property tax relief. – The property tax homestead exclusion provided in this 5
section, the property tax homestead circuit breaker provided in 6
G.S. 105-277.1B, or the disabled veteran property tax homestead exclusion 7
provided in G.S. 105-277.1C. 8
(4) Totally and permanently disabled. – A person is totally and permanently 9
disabled if the person has a physical or mental impairment that substantially 10
precludes him or her from obtaining gainful employment and appears 11
reasonably certain to continue without substantial improvement throughout 12
his or her life. 13
...." 14
SECTION 1.(b) G.S. 105-277.1B reads as rewritten: 15
"§ 105-277.1B. Property tax homestead circuit breaker. 16
... 17
(c) Income Eligibility Limit. Limits. – The individual income eligibility limit provided 18
in G.S. 105-277.1(a2) applies and the joint income eligibility limit provided in 19
G.S. 105-277.1(a3) apply to this section. 20
... 21
(e) Multiple Owners. – A permanent residence owned and occupied by husband and wife 22
is entitled to the full benefit of the property tax homestead circuit breaker notwithstanding that 23
only one of them meets the length of occupancy and ownership requirements and the age or 24
disability requirement of this section. When a permanent residence is owned and occupied by 25
two or more persons other than husband and wife, no property tax homestead circuit breaker is 26
allowed unless all of the owners qualify and elect to defer taxes under this section.each qualifying 27
owner is entitled to the property tax relief provided by this section, provided that each owner 28
must apply separately for the relief. 29
(f) Tax Limitation. – A qualifying owner may defer is exempt from paying the portio