House committee substitute to the 2nd edition makes the following changes.
Amends GS 105-277.1C, the property tax homestead exclusion for disabled veterans, by requiring the State to reimburse each count and city for one-half of the taxes lost because of the increase in the maximum exclusion amount under the statute from the first $45,000 of appraised value to the first $61,000 of appraised value, effective for taxable years beginning on or after July 1, 2026. Requires county and city tax collectors to give the Secretary of Revenue (Secretary) a list of people who have qualified for the exclusion, as well as the total appraised value of the eligible property, the tax rate on the property, and the reduction in taxes due (to be calculated as specified). Requires the Secretary to distribute to each city and county, by April 15, 2207, and annually thereafter, an amount equal to 50% of the sum of the calculated amounts. Requires that the funds a county or city receives because it was collecting taxes for another unit of government or special district to be credited to the funds of that other unit or district. Requires the Secretary, in order to pay for the reimbursements and the cost of administering the reimbursement, to draw from collections under Part 2 (Individual Income Tax) of Article 4 of GS Chapter 105 an amount equal to the reimbursement and administration.
Changes the effective date of the act so that it is now effective for taxes imposed for taxable years beginning on or after July 1, 2026 (was, July 1, 2025).
Makes conforming changes to the act's long title.
DISABLED VETERANS TAX RELIEF BILL.
Printer-friendly: Click to view
| View NCGA Bill Details | 2025-2026 Session |
AN ACT TO INCREASE THE DISABLED VETERAN PROPERTY TAX HOMESTEAD EXCLUSION AMOUNT AND TO PROVIDE LOCAL GOVERNMENTS WITH A PARTIAL REIMBURSEMENT FOR THE LOSS OF REVENUE.Intro. by Campbell, Loftis, Schietzelt, Chesser.
Status: Re-ref Com On Rules, Calendar, and Operations of the House (House action) (Sep 23 2025)
SOG comments (2):
Long title change
Previous title was AN ACT TO MODIFY THE DISABLED VETERAN PROPERTY TAX HOMESTEAD EXCLUSION TO EXCLUDE FROM TAXATION THE PERCENTAGE OF APPRAISED VALUE OF A PRIMARY RESIDENCE OWNED BY A DISABLED VETERAN THAT IS EQUAL TO THE VETERAN'S DISABILITY RATING.
Bill History:
-
Thu, 13 Feb 2025 House: Filed
-
Mon, 17 Feb 2025 House: Passed 1st Reading
-
Tue, 18 Mar 2025 House: Reptd Fav Com Substitute
-
Tue, 18 Mar 2025 House: Re-ref Com On Finance
-
Tue, 23 Sep 2025 House: Reptd Fav Com Sub 2
-
Tue, 23 Sep 2025 House: Re-ref Com On Rules, Calendar, and Operations of the House
H 118
Bill Summaries:
-
Bill H 118 (2025-2026)Summary date: Sep 23 2025 - View Summary
-
Bill H 118 (2025-2026)Summary date: Mar 18 2025 - View Summary
House committee substitute to the 1st edition makes the following changes.
Amends the amount of the property tax homestead exclusion for disabled veterans, under GS 105-277.1C, so that it is the first $61,000 of appraised value of the residences (was, first $45,000 of appraised value of the residence under current law and other specified amounts under the 1st edition). Removes the proposed changes to the definition of disabled veteran and instead makes a technical change. Reinstates the provision allowing a veteran to establish entitlement to homestead exemption as a qualifying veteran under the statute by either (1) establishing permanent and total service connected disability by the VA or (2) establishing receipt of adaptive housing under 38 USC 2101 due to blindness or other permanent and total disabilities. Reinstates the provision prohibiting the amount of the exclusion allowed to all the co-owners from exceeding the exclusion allowed under the statute. Amends the act's long title.
-
Bill H 118 (2025-2026)Summary date: Feb 13 2025 - View Summary
Under current law, the property tax homestead exclusion for disabled veterans, set at the first $45,000 of appraised value of the residence, is excluded from taxation. Revises the property tax homestead exclusion for disabled veterans under GS 105-277.1C, so that the value of the exclusion is set as follows for the following claimants:
- Disabled veteran exclusion. – For a disabled veteran, the exclusion amount is the product of (i) the appraised value of the residence and (ii) the percentage of the qualifying owner's disability rating, as determined by the United States Department of Veterans Affairs.
- Surviving spouse exclusion. – For the surviving spouse of a disabled veteran, the exclusion amount is equal to the greater of (i) the amount excluded under the disabled veteran exclusion explained above as of the date of the disabled veteran's death or (ii) the first $45,000 of appraised value of the permanent residence, provided that the applicant establishes eligibility for such exclusion by providing certification from the United States Department of Veterans Affairs that, as of January 1 preceding the taxable year for which the exclusion is claimed, the veteran's death was the result of a service-connected condition. (Current law allows a surviving spouse to provide such certification from another federal agency as well.) Makes conforming changes to the definition of disabled veteran.
Streamlines the disability component of the definition of disabled veteran so that a veteran only has to show that they have been assigned a disability rating of 50% or greater for service-connected disability by certification from the US Department of Veterans Affairs. (Currently, veteran can establish entitlement to homestead exemption as a qualifying veteran under the statute by either (1) establishing permanent and total service connected disability by the VA or (2) establishing receipt of adaptive housing under 38 USC 2101 due to blindness or other permanent and total disabilities). Makes organizational and conforming changes. Effective for taxes imposed for taxable years beginning on or after July 1, 2025.
View: All Summaries for Bill
Identical to S 228, filed 3/4/25.