Bill Summaries: H 865 EXPAND PROPERTY TAX HOMESTEAD EXCLUSION.

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  • Summary date: Apr 15 2013 - More information

    Amends GS 105-277.1 (Elderly or disabled property tax homestead exclusion), which provides that the amount of the appraised value of the residence of an elderly and disabled homeowner equal to the exclusion amount is excluded from taxation. The exclusion amount is calculated as being the greater amount from the following:

    (1) $25,000.

    (2) An amount equal to the following:

    a. If there has not been a general reappraisal pursuant to GS 105-286 since the time the applicant became eligible for the exclusion allowed under this section, 50% of the appraised value of the residence.

    b. If there has been a general reappraisal pursuant to GS 105-286 since the time the applicant became eligible for the exclusion allowed under this section, an amount equal to the sum of the following:

    1. The difference between the appraised value of the residence and the appraised value of the residence determined pursuant to GS 105-286 as of January 1 of the year of eligibility, cumulatively adjusted according to the annual consumer price index until the year of the last general reappraisal conducted pursuant to GS 105-286; and 2. 50% of the appraised value of the residence determined pursuant to GS 105-286 as of January 1 of the year of eligibility, cumulatively adjusted according to the annual consumer price index until the year of the last general  reappraisal conducted pursuant to GS 105-286.

    (Previously, the exclusion amount was the greater of $25,000 or 50% of the appraised value of the residence.)

    Amends GS 105-277.1(a3) (Income Eligibility Limit), providing that for the taxable year beginning on July 1, 2013, the income eligibility limit is $30,900 for single applicants and $61,800 for married applicants residing with their spouses (previously, the income eligibility limit was $25,000). For taxable years beginning on or after July 1, 2014, 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.

    Amends GS 105-277.1B (Property tax homestead circuit breaker), making conforming changes and providing that a permanent residence owned and occupied by multiple qualifying owners is entitled to full benefit of the property tax homestead circuit breaker notwithstanding that only one of them meets the length of occupancy and ownership requirements and age or disability requirement of this section (previously, multiple qualifying owners, other than husband and wife, were not granted the tax homestead circuit breaker unless all of the owners qualified and elected to defer taxes under this section).

    Effective for taxes imposed for taxable years beginning on or after July 1, 2013. 

     


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