GENERAL ASSEMBLY OF NORTH CAROLINA
1993 SESSION
CHAPTER 360
AN ACT TO INCREASE THE PROPERTY TAX HOMESTEAD EXEMPTION AMOUNT FROM TWELVE THOUSAND DOLLARS TO FIFTEEN THOUSAND DOLLARS AND TO MAKE TECHNICAL CHANGES TO THE HOMESTEAD EXEMPTION STATUTES.
The General Assembly of North Carolina enacts:
Section 1. G.S. 105-277.1 reads as rewritten:
"§ 105-277.1. Property classified for taxation at reduced valuation.
(a) Exclusion. - The
following class of property is designated a special class of property under
Article V, Sec. 2(2) of the North Carolina Constitution and shall be assessed
for taxation as follows. in accordance with this section. The
first twelve thousand dollars ($12,000) fifteen thousand dollars
($15,000) in assessed appraised value of real property, or
a mobile home, owned by a North Carolina resident and occupied by the owner as
his permanent residence shall not be assessed for taxation if, as of January 1
of the year for which the benefit of this section is claimed: a
permanent residence owned and occupied by a qualifying owner is excluded from
taxation. 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) The owner is either
Is at least 65 years of age or older or is totally and
permanently disabled; and disabled.
(2) The owner's
disposable Has an income for the preceding calendar year did not
exceed of not more than eleven thousand dollars ($11,000); and ($11,000).
(3) The owner makes the
required application. Is a North Carolina resident.
For married applicants residing with their spouses, the
disposable income of both spouses must be included, whether or not the property
is in both names. 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.
(b) Definitions. - When used in this section, the following definitions shall apply:
(1) Code. - The Internal Revenue Code, as defined in G.S. 105-228.90.
(1a) Income. - Adjusted gross income, as defined in section 62 of the Code, plus all other moneys received from every source other than gifts or inheritances received from a spouse, lineal ancestor, or lineal descendant. For married applicants residing with their spouses, the income of both spouses must be included, whether or not the property is in both names.
(1b) Owner. -An
'owner' of property means a A person who holds legal or equitable title
to the property, either individually or title, whether individually, as
a tenant by the entirety, a joint tenant, or a tenant in common, or
as the holder of a life estate or an estate for the life of another. Property
owned and occupied by husband and wife as tenants by the entirety shall be
entitled to the full benefit of this classification notwithstanding that only
one of them meets the age or disability requirements herein provided. If
the residence is a mobile A manufactured home and is jointly
owned by husband and wife, it shall be treated as wife is considered property
held by the entirety. When property is owned by two or more persons other
than husband and wife and one or more of such owners qualifies for this
classification, each qualifying owner shall be entitled to the full amount of
the exclusion not to exceed his or her proportionate share of the valuation of
the property. No part of an exclusion available to one co-owner may be claimed
by any other co-owner and in no event shall the total exclusion allowed to a
qualifying residence (including the household personal property therein) exceed
twelve thousand dollars ($12,000).
(2) 'Disposable income'
means adjusted gross income as defined for North Carolina income tax purposes
in G.S. 105-141.3 plus all other moneys received from every source gifts or
inheritances received from a spouse, lineal ancestors, or lineal descendants.
(2a) Repealed by Session Laws 1985 (Reg. Sess., 1986), c. 1982, s. 20.
(3) 'Permanent
residence' means Permanent residence. - A person's legal residence.
It includes the dwelling, the dwelling site, not to exceed one acre, and
related improvements. The dwelling may be a single family residence, a unit in
a multi-family residential complex or a mobile complex, or a manufactured
home. Notwithstanding the occupancy requirements of this classification,
an otherwise qualified applicant shall not lose the benefit of the 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
applicant's spouse or other dependent.
(4) A 'totally and
permanently disabled person' means one who Totally and permanently
disabled. - A person is totally and permanently disabled if the person has
a physical or mental impairment which that substantially
precludes him or her from obtaining gainful employment and such
impairment appears reasonably certain to continue without substantial
improvement throughout his lifetime. or her life.
(c) Application. -
Applications for the exclusions provided by this section are to be filed during
the regular listing period, but, shall An application for the exclusion
provided by this section should be filed during the regular listing period, but
may be filed and must be accepted at any time up to and through April 15 of
the calendar preceding the tax year for which they are to be
effective. the exclusion is claimed. When property is owned by two
or more persons other than husband and wife and one or more of them qualifies
for this exclusion, each such owner shall apply separately for his or
her proportionate share of the exclusion.
(1) Elderly Applicants. - Persons 65 years of age or older may apply for this exclusion by entering the appropriate information on a form made available by the assessor under G.S. 105-282.1.
(2) Disabled Applicants. -
Persons who are totally and permanently disabled may apply for this exclusion
by (i) entering the appropriate information on a form made available by the
assessor under G.S. 105-282.1 and (ii) furnishing acceptable proof of
their disability. Such The proof shall be in the form of a certificate
from a physician licensed to practice medicine in North Carolina or from a
governmental agency authorized to determine qualification for disability
benefits. After a disabled applicant has qualified for this classification, he
or she shall not be required to furnish an additional certificate unless the
applicant's disability is reduced to the extent that the applicant could no
longer be certified for the taxation at reduced valuation.
(d) Multiple Ownership. - A permanent residence owned and occupied by husband and wife as tenants by the entirety is entitled to the full benefit of this exclusion notwithstanding that only one of them meets the age or disability requirements of this section. When a permanent residence is owned and occupied by two or more persons other than husband and wife and one or more of the owners qualifies for this exclusion, each qualifying owner is entitled to the full amount of the exclusion not to exceed his or her proportionate share of the valuation of the property. No part of an exclusion available to one co-owner may be claimed by any other co-owner and in no event may the total exclusion allowed for a permanent residence exceed fifteen thousand dollars ($15,000)."
Sec. 2. G.S. 105-309(f) reads as rewritten:
"(f) The following
information shall appear on each abstract, abstract or on an
information sheet distributed with the abstract. (The The abstract
or sheet must include the address and telephone number of the assessor below
the notice required by this subsection): subsection. The notice
shall read as follows:
'PROPERTY TAX RELIEF FOR ELDERLY AND
PERMANENTLY DISABLED PERSONS.
North Carolina excludes from property taxes the first twelve
thousand dollars ($12,000) fifteen thousand dollars ($15,000) in assessed
appraised value of certain property a permanent residence owned
and occupied by North Carolina residents aged 65 or older or totally and
permanently disabled whose disposable income does not exceed eleven
thousand dollars ($11,000). The exclusion covers real property, or a
mobile home, occupied by the owner as his permanent residence. Disposable
income includes Income means the owner's adjusted gross income as
determined for federal income tax purposes, plus all moneys received other
than gifts or inheritances received from a spouse, lineal ancestors, ancestor
or lineal descendants. descendant.
If you received this exclusion in (assessor insert previous
year), you do not need to apply again unless you have changed your permanent
residence. If you received the exclusion in (assessor insert previous year) and
your disposable income in (assessor insert previous year) was above
eleven thousand dollars ($11,000), you must notify the assessor. If you
received the exclusion in (assessor insert previous year) because you were
totally and permanently disabled and you are no longer totally and permanently
disabled, you must notify the assessor. If the person receiving the exemption
exclusion in (assessor insert previous year) has died, the person
required by law to list the property must notify the assessor. Failure to make
any of the notices required by this paragraph before April 15 will result in
penalties and interest.
If you did not receive the exclusion in (assessor insert previous year) but are now eligible, you may obtain a copy of an application from the assessor. It must be filed by April 15'."
Sec. 3. This act is effective for taxes collected for taxable years beginning on or after July 1, 1994.
In the General Assembly read three times and ratified this the 16th day of July, 1993.
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Dennis A. Wicker
President of the Senate
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Daniel Blue, Jr.
Speaker of the House of Representatives