AN ACT TO MODIFY THE PROPERTY TAX HOMESTEAD CIRCUIT BREAKER.
Makes the following changes to the property tax homestead circuit breaker set forth in GS 105-277.1B.
Modifies the income eligibility standard to now be the median family income for the State for the most recent 12 months for which data are available (was, the income eligibility limit, and incorporated the limit set under the elderly or disabled property tax homestead exclusion of GS 105-277.1).
Modifies the criteria of a qualifying owner to now require the owner to meet the following as of January 1 preceding the taxable year for which the benefit is claimed. Requires the owner (1) to have an income for the preceding year of not more than 200% (was, 150%) of the income eligibility standard; (2) to have owned and occupied the property as a permanent residence for a qualifying period of time of five consecutive years if the owner has an income up to 150% of the income eligibility standard, or 10 consecutive years if the owner has an income over 150% of the income eligibility standard; (3) to be totally and permanently disabled or of qualifying age, which is 67 if an owner has an income up to 150% of the income eligibility standard, or 70 if the owner has an income over 150% of the income eligibility standard; and (4) is a State resident.
Eliminates from the statute the option to defer taxes under the statute. Instead, allows a qualifying owner to exclude the portion of the principal tax amount imposed for the current tax year on the permanent residence and exceeds the percentage of the qualifying owner's income set out in the table provided. Provides for apportionment of taxes due if the permanent residence is subject to tax by more than one taxing unit. Now provides for a qualifying owner with income up to 30% of the income eligibility standard, property tax exclusion for tax exceeding 3% of the income; for income up to 150% of the income eligibility standard, property tax exclusion for tax exceeding 6% of the income; and for income over 150% of the income eligibility standard and up to 200% of the income eligibility standard, property tax exclusion for tax exceeding 10% of the income.
Adds a requirement for the Secretary of Revenue to annually publish on or before May 1 the median family income for the State, using the latest data available published by a State or federal agency generally recognized as having expertise concerning data.
Makes conforming changes to GS 105-282.1 to add properties under GS 105-277.1B for which an owner can file one application for the tax benefit without filing future applications unless changes in valuation are necessary.
Provides a savings clause for rights and liabilities under the statute before the effective date of the act.
Makes conforming repeals of the following statutes, effective for taxes imposed for taxable years beginning on or after July 1, 2022, all pertaining to deferred taxes now eliminated under GS 105-277.1B, as amended: GS 105-277.1F(a)(2); GS 105-365.1(a)(3); GS 153A-148.1(a)(6); and GS 160A-208.1(a)(4).
Effective for taxes imposed for taxable years beginning on or after July 1, 2019.
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