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Details on NC tax relief programs for Seniors, Veterans, and the disabled

You asked: I have heard that the county has removed the 65+, low income, property tax percentage exemption from our property tax bills. Is this true?

Short answer: No. Nothing has changed with the exemption. 

This program is a State program that all 100 counties participate in and the rules are the same for all 100 counties in North Carolina. This program is under the N.C General Statute 105-277.1 . Under North Carolina law, there are three different exemptions residents can apply for to receive tax relief on their property tax bills. 

Elderly/Disabled

North Carolina excludes from property taxes a portion of the appraised value of a permanent residence owned and occupied by North Carolina residents aged 65 or older or totally and permanently disabled whose 2022 income does not exceed $33,800 annually. 

For this exemption, the amount of the appraised value of the residence that may be excluded from taxation is the greater of twenty five thousand dollars ($25,000) or fifty percent (50%) of the appraised value of the residence. Income is defined as monies received from every source including Social Security benefits, retirement payments, proceeds from insurance policies, interest, dividends, etc. It does not include gifts or inheritances from a spouse or immediate family member.

Residents who have previously received the Elderly/Disabled exclusion do not need to apply annually unless there is a change in their permanent residence. If a resident has received the exclusion, and their income now exceeds $33,800  they must notify their local tax office. 

If the person receiving the exclusion has died, the person required by law to list the property must notify the local tax office. Failure to make any of the notices required by law before June 1, will result in penalties and interest. 

Disabled Veterans

North Carolina excludes from property taxes $45,000 of the appraised value of a permanent residence owned and occupied by an honorably discharged disabled veteran or the unmarried surviving spouse of an honorably discharged disabled veteran. A disabled Veteran is a Veteran who either (1) has 100% permanent total disability that is service-connected or (2) receives benefits for specially adapted housing under 38 U.S.C. 2101. Complete an Application for Property Tax Relief Form AV-9 for certification by the US Department of Veterans Affairs for a veteran who has a 100% total permanent, service-connected disability. 

Circuit Breaker Tax Deferment for Senior Citizens

For an owner whose income amount for the previous year does not exceed the income eligibility limit for the current year, which for the 2022 tax year is $33,800, the owner’s taxes will be limited to four percent (4%) of the owner’s income. For an owner whose income exceeds the income eligibility limit ($33,800) but does not exceed 150% of the income eligibility limit, which for the 2021 tax year is $50,700, the owner’s taxes will be limited to five percent (5%) of the owner’s income.

However, the taxes over the limitation amount are deferred and remain a lien on the property. The last three years of deferred taxes prior to a disqualifying event will become due and payable, with interest, on the date of the disqualifying event. Interest accrues on the deferred taxes as if they had been payable on the dates on which they would have originally become due. Disqualifying events are death of the owner, transfer of the property, and failure to use the property as the owner’s permanent residence. Exceptions and special provisions apply. See G.S. 105-277.1B for the full text of the statute.

 An annual application is required for continued participation in the Circuit Break Program.

Local tax offices begin accepting the appropriate forms to apply for the tax relief programs after January 1 of each year, with all forms being due before June 1. 

 

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