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  • Summary date: Feb 13 2023 - View Summary

    Enacts new GS 105-277.1G, creating a process where a qualifying elderly homeowner may defer increases on property taxes due for their primary residence. Defines “qualifying owner” as a NC resident at least age 65 who has owned the property as a permanent residence for at least five consecutive years and and occupied the primary residence for at least five years. Assesses the taxable value of a qualifying owner’s primary residence at the lower of either the true value or the assessed value in the first year the qualifying owner's application for property tax relief is accepted. Permits the qualifying owner to defer the portion of property taxes due on any increase in assessed value. Provides that a husband and wife may share the deferral benefit on a primary residence if one is a qualifying owner, but denies this benefit to other primary residences owned by two or more persons unless all owners are qualifying owners under the section. 

    Mandates that each taxing unit record and carry forward the deferred taxes. Establishes disqualifying events and the amount of taxes due and payable upon the loss of eligibility for a deferral. Prevents any mortgagee or trustee who elects to pay the deferred portion of the property taxes from foreclosing on the property as a result of that election. Makes void any provision in a deed of trust or mortgage forbidding an owner from deferring property taxes as permitted under the section. Requires the county tax assessor to notify qualifying owners of their eligibility no later than January 15 preceding the tax year for the owner’s eligibility.

    Makes conforming changes to GS 107-277.1 (concerning the elderly or disabled property tax homestead exclusion) and GS 105-282.1 (a)(2)c (concerning the application for special classes of property classified for taxation at a reduced valuation).

    Effective for taxes imposed for taxable years beginning on or after July 1, 2023.