AN ACT TO EXPAND THE PROPERTY TAX HOMESTEAD EXCLUSION TO INCLUDE LOCAL, STATE, AND FEDERAL GOVERNMENT EMPLOYEES, TO REMOVE THE AGE AND DISABILITY REQUIREMENTS AS CONDITIONS FOR QUALIFICATION UNDER THE PROPERTY TAX HOMESTEAD CIRCUIT BREAKER, TO INCREASE THE INCOME ELIGIBILITY LIMIT UNDER THE PROPERTY TAX HOMESTEAD CIRCUIT BREAKER, AND TO PROVIDE ADDITIONAL FUNDING FOR THE WORKFORCE HOUSING LOAN PROGRAM AND THE NORTH CAROLINA HOUSING TRUST FUND.
Enacts GS 105-277.1E, establishing the following new property tax exclusion. Designates as a special class of property a permanent residence owned and occupied by a qualifying owner, defined as one who, as of January 1 preceding the taxable year for which the benefit is claimed: received income from one or more local, State, or federal government retirement plans for at least 20 years of creditable service; does not have income above the eligibility limit under GS 105-277.1; a State resident. Excludes the amount of the appraised value of the residence equal to the exclusion amount, which is the portion of appraised value that would result in the property's total tax liability exceeding $1,000. Bars receiving any other property tax relief in combination with the exclusion. Establishes that an owner does not lose the benefit of exclusion because of a temporary absence from the permanent residence for reasons of health or while confined to a rest home or nursing home, as long as the residence is unoccupied, or occupied by a dependent or the spouse of the owner. Establishes provisions concerning application for residences owned by spouses, and situations where there are multiple owners who are not husband and wife.
Amends GS 105-277.1B, changing the qualifications for a property owner to be eligible for the homestead circuit breaker property tax exclusion provided. Eliminates the age or disability requirement of a qualifying owner under the statute (previously, required age of 65 or total and permanent disability). Expands income eligibility to include owners who have an income for the preceding calendar year of no more than 235% (was, 150%) of the income eligibility limit provided in GS 105-277.1B(c). Regarding property owned by husband and wife, now entitles the owner to the full exclusion if one of them meets the requirements (was, if one of them meets the length of occupancy and ownership and age or disability requirements).
Makes conforming changes to GS 105-277.1 and GS 105-277.1C to exclude receiving tax relief under either of the statutes and new GS 105-277.1E.
Effective for taxable years beginning on or after July 1, 2022.
Appropriates $35 million in recurring funds from the General Fund to the Housing Finance Agency for 2022-23 for the Workforce Housing Loan Program.
Appropriates $50 million in additional recurring funds from the General Fund to the Housing Trust Fund for 2022-23 to be administered pursuant to GS Chapter 122E, the North Carolina Housing Trust and Oil Overcharge Act.
Effective July 1, 2022.