AN ACT to modify the elderly or disabled property tax homestead exclusion to increase the age requirement, to remove the income eligibility limit, and to exclude from taxation one hundred percent of the appraised value of the residence, and to make a conforming change necessary to implement those changes.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 105‑277.1 reads as rewritten:

§ 105‑277.1.  Elderly or disabled property tax homestead exclusion.

(a)        Exclusion. – A permanent residence owned and occupied by a qualifying owner is designated a special class of property under Article V, Sec. 2(2) of the North Carolina Constitution and is taxable in accordance with this section. The amount of the appraised value of the residence equal to the exclusion amount is excluded from taxation. The exclusion amount is the greater of twenty five thousand dollars ($25,000) or fifty one hundred percent (50%) (100%) of the appraised value of the residence. An owner who receives an exclusion under this section may not receive other property tax relief.

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)        Is at least 65 70 years of age or totally and permanently disabled.

(2)        Has an income for the preceding calendar year of not more than the income eligibility limit.

(3)        Is a North Carolina resident.

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(a2)      Income Eligibility Limit. – For the taxable year beginning on July 1, 2008, the income eligibility limit is twenty‑five thousand dollars ($25,000). For taxable years beginning on or after July 1, 2009, the income eligibility limit is the amount for the preceding year, adjusted by the same percentage of this amount as the percentage of any cost‑of‑living adjustment made to the benefits under Titles II and XVI of the Social Security Act for the preceding calendar year, rounded to the nearest one hundred dollars ($100.00). On or before July 1 of each year, the Department of Revenue must determine the income eligibility amount to be in effect for the taxable year beginning the following July 1 and must notify the assessor of each county of the amount to be in effect for that taxable year.

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(c)        Application. – An application for the exclusion provided by this section should be filed during the regular listing period, but may be filed and must be accepted at any time up to and through June 1 preceding the tax year for which the exclusion is claimed. When property is owned by two or more persons other than husband and wife and one or more of them qualifies for this exclusion, each owner must apply separately for his or her proportionate share of the exclusion.

(1)        Elderly Applicants. – Persons 65 70 years of age or older may apply for this exclusion by entering the appropriate information on a form made available by the assessor under G.S. 105‑282.1.

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SECTION 2.  G.S. 105‑277.1B reads as rewritten:

§ 105‑277.1B.  Property tax homestead circuit breaker.

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(c)        Income Eligibility Limit. – The income eligibility limit provided in G.S. 105‑277.1(a2) applies to this section.For the taxable year beginning on July 1, 2008, the income eligibility limit is twenty‑five thousand dollars ($25,000). For taxable years beginning on or after July 1, 2009, the income eligibility limit is the amount for the preceding year, adjusted by the same percentage of this amount as the percentage of any cost‑of‑living adjustment made to the benefits under Titles II and XVI of the Social Security Act for the preceding calendar year, rounded to the nearest one hundred dollars ($100.00). On or before July 1 of each year, the Department of Revenue must determine the income eligibility amount to be in effect for the taxable year beginning the following July 1 and must notify the assessor of each county of the amount to be in effect for that taxable year.

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SECTION 3.  This act is effective for taxes imposed for taxable years beginning on or after July 1, 2026.