Bill Text: NC H865 | 2013-2014 | Regular Session | Amended
Bill Title: Expand Property Tax Homestead Exclusion
Spectrum: Partisan Bill (Democrat 13-0)
Status: (Introduced - Dead) 2013-04-15 - Ref To Com On Finance [H865 Detail]
Download: North_Carolina-2013-H865-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2013
H 1
HOUSE BILL 865
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Short Title: Expand Property Tax Homestead Exclusion. |
(Public) |
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Sponsors: |
Representatives Foushee and Insko (Primary Sponsors). For a complete list of Sponsors, refer to the North Carolina General Assembly Web Site. |
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Referred to: |
Finance. |
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April 15, 2013
A BILL TO BE ENTITLED
AN ACT to expand the homestead exemption and circuit breaker.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 105‑277.1 reads as rewritten:
"§ 105‑277.1. Elderly or disabled property tax homestead exclusion.
(a) Exclusion. A permanent residence owned and
occupied by a qualifying owner is designated a special class of property under
Article V, Sec. 2(2) of the North Carolina Constitution and is taxable in
accordance with this section. The amount of the appraised value of the
residence equal to the exclusion amount is excluded from taxation. The
exclusion amount is the greater of twenty five thousand dollars ($25,000) or
fifty percent (50%) of the appraised value of the residence. An owner who
receives an exclusion under this section may not receive other property tax
relief. The exclusion amount is the greater of the following:
(1) Twenty‑five thousand dollars ($25,000).
(2) An amount equal to the following:
a. If there has not been a general reappraisal pursuant to G.S. 105‑286 since the time the applicant became eligible for the exclusion allowed under this section, fifty percent (50%) of the appraised value of the residence.
b. If there has been a general reappraisal pursuant to G.S. 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 G.S. 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 G.S. 105‑286.
2. Fifty percent (50%) of the appraised value of the residence determined pursuant to G.S. 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 G.S. 105‑286.
(a1) Ownership Requirements. A qualifying owner is an owner who meets all of the following requirements as of January 1 preceding the taxable year for which the benefit is claimed:
(1) Is at least 65 years of age or totally and permanently disabled.
(2) Has an income for the preceding calendar year of not more than the income eligibility limit.
(3) Is a North Carolina resident.
(a1)(a2) Temporary Absence. An otherwise
qualifying owner does not lose the benefit of this exclusion because of a
temporary absence from his or her permanent residence for reasons of health, or
because of an extended absence while confined to a rest home or nursing home,
so long as the residence is unoccupied or occupied by the owner's spouse or
other dependent.
(a2)(a3) Income Eligibility Limit. For
the taxable year beginning on July 1, 2008,2013, the income
eligibility limit is twenty‑five thousand dollars ($25,000).thirty
thousand nine hundred dollars ($30,900), except that the limit is sixty‑one
thousand eight hundred dollars ($61,800) for married applicants residing with
their spouses. For taxable years beginning on or after July 1, 2009,2014,
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, rounded to the nearest one hundred dollars
($100.00). On or before July 1 of each year, the Department of Revenue must
determine the income eligibility amount to be in effect for the taxable year
beginning the following July 1 and must notify the assessor of each county of
the amount to be in effect for that taxable year.
."
SECTION 2. G.S. 105‑277.1B reads as rewritten:
"§ 105‑277.1B. Property tax homestead circuit breaker.
(c) Income Eligibility Limit. The income eligibility
limit provided in G.S. 105‑277.1(a2)G.S. 105‑277.1(a3)
applies to this section.
(e) Multiple Owners. A permanent residence owned and
occupied by husband and wifemultiple qualifying owners is
entitled to the full benefit of the property tax homestead circuit breaker
notwithstanding that only one of them meets the length of occupancy and
ownership requirements and the age or disability requirement of this section.
When a permanent residence is owned and occupied by two or more persons other
than husband and wife, no property tax homestead circuit breaker is allowed
unless all of the owners qualify and elect to defer taxes under this section.
."
SECTION 3. This act is effective for taxes imposed for taxable years beginning on or after July 1, 2013.
