Variations in Receipt of Benefit
Benefit Varies with Income
Under the program, taxes are limited to a percentage of income. The amount of the taxes deferred is a lien on the property. For tax year 2019, for applicants with income below the eligible level ($30,200), taxes in excess of 4% may be deferred. Those with income above the eligible level and below 150% ($45,300) of eligible income may defer taxes in excess of 5%.
How is Benefit Disbursed
Eligible Property Type
Characteristics of Eligible Property
Only residential property is eligible for the relief. Up to one acre of land on which the residence is located is also eligible for the exclusion. Residential property can include a single family residence, an unit in a multi-dwelling complex, or a manufactured home.
Description of Eligibility Criteria
Qualifying homeowners must be North Carolina residents and least 65 year of age or have a total and permanent disability. They must own and occupy the homestead as a principal place of residence for at least 5 consecutive years. If the property has multiple owners who are not married, all owners must qualify and elect to defer the taxes. For 2019, income eligibility limit is $30,200. Applicants must have income less than 150% ($45,300) of the income eligibility limit. The limit is adjusted annually by the percentage of any cost-of-living adjustment to Social Security. For 2018, income eligibility limit is $29,600. Applicants must have income less than 150% ($44,440) of the income eligibility limit. The limit is adjusted annually by the percentage of any cost-of-living adjustment to Social Security. If an applicant ceases to be eligible for the program, the deferred amount from the previous three years will become due and payable.
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.
[https://www.ncdor.gov/documents/av-9-2019-application-property-tax-relief Accessed 08/10/2020]
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