North Carolina HB 105: Raise Homestead Exemption.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA 
1993 SESSION 
 
 
CHAPTER 360 
HOUSE BILL 105 
 
AN  ACT  TO  INCREASE  THE  PROPERTY  TAX  HOMESTEAD  EXEMPTION  
AMOUNT FROM TWELVE THOUSAND DOLLARS TO FIFTEEN THOUSAND 
DOLLARS  AND  TO  MAKE  TECHNICAL  CHANGES  TO  THE  HOMESTEAD  
EXEMPTION STATUTES. 
 
The General Assembly of North Carolina enacts: 
 
Section 1.  G.S. 105-277.1 reads as rewritten: 
"§ 105-277.1.  Property classified for taxation at reduced valuation. 
(a)       Exclusion.       –       
The  following  class  of  property  is  designated  a  special  class  of  
property  under  Article  V,  Sec.  2(2)  of  the  North  Carolina  Constitution  and  shall  be  
assessed  for  taxation  as  follows.  
in  accordance  with  this  section.    The  first  twelve  
thousand  dollars  ($12,000)  fifteen  thousand  dollars  ($15,000)  in  assessed  appraised 
value  of  real  property,  or  a  mobile  home,  owned  by  a  North  Carolina  resident  and  
occupied by the owner as his permanent residence shall not be assessed for taxation if, 
as of January 1 of the year for which the benefit of this section is claimed: a permanent 
residence  owned  and  occupied  by  a  qualifying  owner  is  excluded  from  taxation.    A  
qualifying owner is an owner who meets all of the following requirements as of January 
1 preceding the taxable year for which the benefit is claimed: 
(1) The owner is either 
Is at least 65 years of age or older or is totally and 
permanently disabled; and 
disabled. 
(2) The owner's disposable 
Has an income for the preceding calendar year 
did  not  exceed  
of  not  more  than  eleven  thousand  dollars  ($11,000);  
and ($11,000). 
(3)      The      ow
ner   makes   the   required   application.   Is   a   North   Carolina   
resident. 
For  married  applicants  residing  with  their  spouses,  the  disposable  income  of  both  
spouses  must  be  included,  whether  or  not  the  property  is  in  both  names.  An  otherwise  
qualifying  owner  does  not  lose  the  benefit  of  this  exclusion  because  of  a  temporary  
absence  from  his  or  her  permanent  residence  for  reasons  of  health,  or  because  of  an  
extended  absence  while  confined  to  a  rest  home  or  nursing  home,  so  long  as  the  
residence is unoccupied or occupied by the owner's spouse or other dependent. 
(b)  Definitions.  –  When  used  in  this  section,  the  following  definitions  shall  
apply: 
(1) Code. – The Internal Revenue Code, as defined in G.S. 105-228.90.
 
(1a)
     Income. – Adjusted gross income, as defined in section 62 of the Code, 
plus  all  other  moneys  received  from  every  source  other  than  gifts  or  

 
Page 2 S.L. 1993-360 House  Bill 105 
inheritances   received   from   a   spouse,   lineal   ancestor,   or   lineal   
descendant.    For  married  applicants  residing  with  their  spouses,  the  
income of both spouses must be included, whether or not the property 
is in both names. 
(1b)
    Owner.    –An 'owner' of property means a A person who holds legal or 
equitable  title  to  the  property,  either  individually  or  
title,  whether  
individually, as  a  tenant  by  the  entirety,  a  joint  tenant,  or  a  tenant  in  
common,  or  as  the  holder  of  
a  life  estate  or  an  estate  for  the  life  of  
another. Property owned and occupied by husband and wife as tenants 
by the entirety shall be entitled to the full benefit of this classification 
notwithstanding  that  only  one  of  them  meets  the  age  or  disability  
requirements   herein   provided.      If   the   residence   is   a   mobile   A 
manufactured home and is jointly owned by husband and wife, it shall 
be  treated  as  wife  is  considered  property  held  by  the  entirety.  When  
property is owned by two or more persons other than husband and wife 
and  one  or  more  of  such  owners  qualifies  for  this  classification,  each  
qualifying  owner  shall  be  entitled  to  the  full  amount  of  the  exclusion  
not  to  exceed  his  or  her  proportionate  share  of  the  valuation  of  the  
property.  No  part  of  an  exclusion  available  to  one  co-owner  may  be  
claimed  by  any  other  co-owner  and  in  no  event  shall  the  total  
exclusion  allowed  to  a  qualifying  residence  (including  the  household  
personal property therein) exceed twelve thousand dollars ($12,000). 
(2)      'Disposable      income'      means adjusted gross income as defined for North 
Carolina income tax purposes in G.S. 105-141.3 plus all other moneys 
received  from  every  source  gifts  or  inheritances  received  from  a  
spouse, lineal ancestors, or lineal descendants.  
(2a)     Repealed by Session Laws 1985 (Reg. Sess., 1986), c. 1982, s. 20. 
(3)      'Permanent      residence'      means      
Permanent  residence.  –  A  person's  legal 
residence. It includes the dwelling, the dwelling site, not to exceed one 
acre,  and  related  improvements.  The  dwellin