North Carolina HB 728: Shared Investment in Our Heroes Act.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 728

Short Title: Shared Investment in Our Heroes Act. (Public)
Sponsors: Representative F. Jackson.
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 3, 2025
*H728-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO GRADUALLY INCREASE THE EXEMPTION AMOUNT UNDER THE 2
DISABLED VETERAN PROPERTY TAX HOMESTEAD EXCLUSION, TO ALLOW 3
DISABLED VETERANS TO PREQUALIFY FOR THE DISABLED VETERAN 4
PROPERTY TAX HOMESTEAD EXCLUSION, TO EXCLUDE THE PRIMARY MOTOR 5
VEHICLE OWNED BY A ONE HUNDRED PERCENT DISABLED VETERAN FROM 6
THE PROPERTY TAX, AND TO REIMBURSE LOCAL GOVERNMENTS FOR A 7
PERCENTAGE OF THEIR RESULTING REVENUE LOSS. 8
Whereas, North Carolina strives to be the most veteran-friendly state in the nation; 9
and 10
Whereas, North Carolina recognizes the sacrifices of its veterans who have become 11
100% permanently and totally disabled due to service-connected conditions; and 12
Whereas, homeownership and reliable transportation are critical to the well-being of 13
disabled veterans, this act seeks to provide immediate financial relief through property tax 14
exemptions; and 15
Whereas, to ensure local governments remain financially stable, this act establishes a 16
hold harmless model to reimburse local governments up to 50% of revenue losses resulting from 17
the implementation of this act, ensuring a shared investment between the State and local 18
governments in honoring our disabled veterans; Now, therefore, 19
The General Assembly of North Carolina enacts: 20
21
PART I. DISABLED VETERAN PROPERTY TAX HOMESTEAD EXCLUSION 22
SECTION 1.(a) For taxes imposed for taxable years beginning on or after July 1, 23
2025, G.S. 105-277.1C reads as rewritten: 24
"§ 105-277.1C. Disabled veteran property tax homestead exclusion. 25
(a) Classification. – A permanent residence owned and occupied by a qualifying owner 26
is designated a special class of property under Article V, Section 2(2) of the North Carolina 27
Constitution and is taxable in accordance with this section. The first forty-five seventy-five 28
thousand dollars ($45,000) ($75,000) of appraised value of the residence is excluded from 29
taxation. A qualifying owner who receives an exclusion under this section may not receive other 30
property tax relief. 31
(b) Definitions. – The following definitions apply in this section: 32
(1) Disabled veteran. – A veteran of any branch of the Armed Forces of the United 33
States whose character of service at separation was honorable or under 34
honorable conditions and who satisfies one of the following requirements: 35

General Assembly Of North Carolina Session 2025
Page 2 House Bill 728-First Edition
a. As of January 1 preceding the taxable year for which the exclusion 1
allowed by this section is claimed, the veteran had received benefits 2
under 38 U.S.C. § 2101. 3
b. The veteran has received a certification by the United States 4
Department of Veterans Affairs or another federal agency indicating 5
that, as of January 1 preceding the taxable year for which the exclusion 6
allowed by this section is claimed, he or she has a service-connected, 7
permanent, and total disability. 8
c. The veteran is deceased and the United States Department of Veterans 9
Affairs or another federal agency has certified that, as of January 1 10
preceding the taxable year for which the exclusion allowed by this 11
section is claimed, the veteran's death was the result of a 12
service-connected condition. 13
(2) Repealed by Session Laws 2009-445, s. 22(c), effective for taxes imposed for 14
taxable years beginning on or after July 1, 2009. 15
(2a) Hold harmless amount. – The appraised value of a property excluded from 16
taxation under subsection (a) of this section multiplied by the applicable local 17
tax rate. 18
(3) Permanent residence. – Defined in G.S. 105-277.1. 19
(4) Property tax relief. – Defined in G.S. 105-277.1. 20
(4a) Qualifying owner. – An owner, as defined in G.S. 105-277.1, who is a North 21
Carolina resident and one of the following: 22
a. A disabled veteran. 23
b. The surviving spouse of a disabled veteran who has not remarried. 24
(5), (6) Repealed by Session Laws 2009-445, s. 22(c), effective for taxes imposed for 25
taxable years beginning on or after July 1, 2009. 26
(7) Service-connected. – Defined in 38 U.S.C. § 101. 27
(8) Total hold harmless amount. – The sum of the following: 28
a. The hold harmless amount for all property excluded from taxation 29
under subsection (a) of this section in the county multiplied by fifty 30
percent (50%). 31
b. The hold harmless amount for all property excluded from taxation 32
under subsection (a) of this section in the cities located in the county 33
multiplied by fifty percent (50%). 34
... 35
(f) Application. – An application for the exclusion allowed under this section should be 36
filed during the regular listing period but ma