Bill Summary for S 148 (2023-2024)
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AN ACT TO INCREASE THE PROPERTY TAX HOMESTEAD EXCLUSION AMOUNT FOR DISABLED VETERANS, TO REIMBURSE LOCAL GOVERNMENTS FOR THEIR RESULTING REVENUE LOSS, AND TO ALLOW DISABLED VETERANS TO PREQUALIFY FOR THE DISABLED VETERAN PROPERTY TAX HOMESTEAD EXCLUSION.Intro. by Johnson, Lazzara, Bode.
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Amends the disabled veteran property tax homestead exclusion (GS 105-277.1C) as follows, effective for taxable years beginning on or after July 1, 2024. Increases the amount of the exclusion to the first $100,000 of the appraised value of the veteran’s residence (was, the first $45,000 of the appraised value). Effective for taxable years beginning on or after July 1, 2026, increases the amount of the exclusion to the first $150,000 of the appraised value and to the first $200,000 of the appraised value starting July 1, 2028.
Sets a holds harmless amount as the appraised value of the property excluded from taxation under the disabled veteran’s property tax homestead exclusion, multiplied by the applicable local tax rate. Sets a total hold harmless amount as the sum of the hold harmless amount for all property excluded from taxation under this statute in the county plus the hold harmless amount for all property excluded from taxation under this statute in the cities located in the county. Requires counties to notify the Secretary of Revenue (Secretary) of the total hold harmless amount and disallows reimbursement to the county if it fails to notify the Secretary by the due date. Requires the Secretary to reimburse the county on or before December 31 of each year. Requires county to disperse attributable reimbursement funds to cities within the county. Requires cities or counties that received funds because they were collecting taxes for another unit of government or special district to credit those funds to those units in accordance with regulations issued by the Local Government Commission. Allows for disabled veterans to apply for prequalification of the homestead exemption tax relief, even before purchasing a property, so long as a prequalified veteran applies for the property tax relief when purchasing the property. Sets forth an application process and notice requirements. Makes conforming changes. Effective for tax years beginning July 1, 2024.