NORTH CAROLINA GENERAL ASSEMBLY

1971 SESSION

CHAPTER 932

SENATE BILL 120

AN ACT GRANTING PROPERTY TAX RELIEF TO CERTAIN AGED AND INDIGENT PERSONS.

The General Assembly of North Carolina enacts:

Section 1.  G.S. 105-277.1 is hereby added, to be entitled "Property classified for taxation at reduced valuation 1 and to read as follows:

"The following class of property is hereby designated a special class under authority of Article V, Section 3, of the North Carolina Constitution and shall not be assessed for taxation: the first $5,000.00 in appraised value of real property held and used as the principal place of residence of the owner and spouse if living; provided the owner is retired and the combined disposable income of the owner and his spouse, if living, is not more than $3,500; provided further that in no event shall the disposable income of the owner or of any person contributing one-half or more of the owner's support exceed $3,500. For the purposes of this section, the following definitions shall apply:

(1)        A person is retired when he is (i) sixty-five years of age or more, and (ii) is not regularly engaged in income-producing activity.

(2)        Disposable income means gross income as defined in G.S. 105-141, increased by amounts excluded from gross income pursuant to G.S. 105‑141(b)(l), (2), (4), (7), (8), (10), (12), (13), (14), (15), and (16).

(3)        A person is an owner of property when he holds, individually or as a tenant by the entirety, the entire legal or equitable title, subject to easements, removable liens and other similar encumbrances, if any.

(4)        The principal place of residence of a person is the place at which he resides for six months or more out of the year.

The exclusion offered by this paragraph may be claimed by any person entitled thereto at the time he lists his property for taxation, and shall be supported by proof of disposable income in the preceding calendar year filed with the tax supervisor of the county or counties in which the property lies not later than April 15. Claim of the exemption and proof of eligibility must be made for each year within the time prescribed herein."

Sec. 2.  All laws and clauses of laws in conflict with this act are repealed.

Sec. 3.  This act shall take effect on January 1, 1972.

In the General Assembly read three times and ratified, this the 19th day of July, 1971.