Homestead Circuit Breaker Tax Deferment Senior or Disabled Citizens

State

North Carolina

Year

2015

Variations in Receipt of Benefit

Benefit Varies with Income

Benefit Type

Circuit Breaker

Benefit

Under the program, taxes are limited to a percentage of income. For those eligible owners with income below the eligible level, taxes in excess of 4% may be deferred. Those with income above eligible level and below 150% ($43,500) of eligible income may defer taxes in excess of 5%.

How is Benefit Disbursed

Other

Eligible Property Type

Residential

Characteristics of Eligible Property

Only residential property is eligible for relief.

Eligibility Criteria

Age

Disability

Homeowner

Income Ceiling

Principal Residence

Other Criteria

Description of Eligibility Criteria

Qualifying homeowners must be 65 year of age or older or have a total and permanent disability. Applicants must have income less than 150% of the income eligibility limit. The limit is adjusted annually from the 2008 level of $25,000 by the percentage of any cost-of-living adjustment made to the benefits of Social Security. For 2015, income in 2014 cannot exceed $29,000. Homeowners must own and occupy the homestead as a principal place of residence for at least 5 consecutive years. Applicants must be North Carolina residents.

Local Option in Adoption of Program

Local government is unable to exercise an option

Local Option Regarding Program Features

No local option regarding program features

State Funding for Local Tax Loss

Local government covers all of its tax loss

Description of State Funding for Tax Loss

The Statue is silent regarding whether or not the state reimburses the local governments for any tax loss.

Record ID

NC103_RR15

Footnotes

Qualified homeowner may elect either this program or the program for homestead exemption. An otherwise qualifying owner does not lose the benefit of this circuit breaker 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.

Sources

N.C. Gen. Stat. § 105‑277.1B (in effect for 2015)
2015 Application for Property Tax Relief (2014) North Carolina Department of Revenue [http://www.dornc.com/downloads/fillin/av9_2015.pdf Accessed on 07/07/2016] View Archived Source

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