Contains whereas clauses.

Modifies the elderly or disabled property tax homestead exclusion under GS 105-277.1 as follows. Specifies that qualifying owners with: (1) an income at or below 55% of the State median income receive the full exclusion; (2) an income between 55% and 80% of the State median income, the exclusion begins at 100% of the exclusion amount of property tax relief provided, and is reduced by 3.33% for every 1% of income above the 55% threshold; and (3) disallows any relief under GS 105-277.1 for those with an income at or above 80% of the State’s median income. Makes conforming change to qualifying owner. Allows owners receiving an exclusion under the statute to also relieve the circuit breaker relief under GS 105-277.1B, so long as they meet the requirements of that statute. Defines resident senior and state median income. Creates a resident senior carveout, specifying that a permanent residence owned and occupied by a resident senior is entitled to the full property tax relief provided GS 105-277.1 notwithstanding that the resident senior has a proportional ownership interest in the property so long as no other non-spouse resides in the property and that any co-owners do not object.

Makes the following changes to GS 105-277.1B (Property tax homestead circuit braker). Defines hold harmless amount, resident senior, total hold harmless amount. Specifies that for the taxable year beginning July 1, 2008, the income eligibility limit is $25,000, for taxable years beginning on or after July 1, 2009, sets the income eligibility limit as the amount for the preceding year, adjusted by the same percentage as any COLA increases to Social Security rounded to the nearest $100. Tasks the Department of Revenue with determining 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, by July 1 of each year. Lowers the residency requirements for a qualifying owner from owning the subject property as a permanent residence for at least five consecutive years to owning the property for at least three consecutive years. Removes requirement that all non-married, joint owners of property must qualify and elect to defer taxes under GS 105-277.1. Instead provides for proportional amounts of the exclusion, as described.

Specifies that a permanent residence owned and occupied by a resident senior is entitled to the full property tax relief provided GS 105-277.1B notwithstanding that the resident senior has a proportional ownership interest in the property so long as no other non-spouse resides in the property and co-owners do not object. Specifies that if any co-owner objects to the resident senior receiving the full property tax relief provided by this subsection, the proportional relief available in the statute applies. Provides for interest rates on liens under GS 105-277.1. Provides for reimbursement of a county’s hold harmless amount, upon the county’s notice to the Secretary of Revenue, as described.

Effective for taxes imposed for taxable years beginning on or after July 1, 2027.

Appropriates $20 million from the General Fund to the NC Association of County Commissioners (Association) for 2026-27 to be used by the Association to provide grants to local governments for the purpose of transitioning those governments to shortened reappraisal cycles and thereby ensure more frequent and accurate property valuations, as specified. Appropriates $250,000 from the General Fund to the Department of Revenue for 2026-27 to be used to study how to efficiently and effectively implement a system of automatic income eligibility verification for applicants for property tax relief under GS 105-277.1, GS 105-277.1B, and GS 105-277.1C. Appropriates $2 million from the General Fund to the Department of Justice in recurring funds beginning with 2026-27 to support eight full-time equivalent attorney positions at the Department to assist local governments and the Department of Revenue with property tax appeals cases arising under GS Chapter 105. Effective July 1, 2026.