GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
H 1
HOUSE BILL 59
Short Title: Expand Elderly/Disabled Homestead Exclusion. (Public)
Sponsors: Representatives Paré, Cotham, Schietzelt, and Echevarria (Primary Sponsors).
For a complete list of sponsors, refer to the North Carolina General Assembly web site.
Referred to: Finance, if favorable, Rules, Calendar, and Operations of the House
February 6, 2025
*H59-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO EXPAND THE ELDERLY OR DISABLED PROPERTY TAX HOMEST EAD 2
EXCLUSION. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. G.S. 105-277.1 reads as rewritten: 5
"§ 105-277.1. Elderly or disabled property tax homestead exclusion. 6
(a) Exclusion. – A permanent residence owned and occupied by a qualifying owner is 7
designated a special class of property under Article V, Sec. 2(2) of the North Carolina 8
Constitution and is taxable in accordance with this section. The amount of the appraised value of 9
the residence equal to the exclusion amount is excluded from taxation. The exclusion amount is 10
the greater of twenty five twenty-five thousand dollars ($25,000) or fifty percent (50%) of the 11
appraised value of the residence. An owner who receives an exclusion under this section may not 12
receive other property tax relief. 13
A qualifying owner is an owner who meets all of the following requirements as of January 1 14
preceding the taxable year for which the benefit is claimed: 15
(1) Is at least 65 years of age or totally and permanently disabled. 16
(2) Has an one or more of the following: 17
a. An income for the preceding calendar year of not more than the 18
income eligibility limit. 19
b. An income for the preceding calendar year of not more than eighty 20
percent (80%) of the applicable area median income for a household 21
of two persons in the county in which the property is located; provided, 22
that the owner has owned and occupied the property as a permanent 23
residence for the previous 15 consecutive years. For purposes of this 24
sub-subdivision, "applicable area median income" is the most recent 25
figure reported by the United States Department of Housing and Urban 26
Development as of January 1 preceding the taxable year for which the 27
benefit is claimed. 28
(3) Is a North Carolina resident. 29
… 30
(a2) Income Eligibility Limit. – For the taxable year beginning on July 1, 2008, 2026, the 31
income eligibility limit is twenty-five thousand dollars ($25,000). forty-eight thousand dollars 32
($48,000). For taxable years beginning on or after July 1, 2009, 2027, the income eligibility limit 33
is the amount for the preceding year, adjusted by the same percentage of this amount as the 34
percentage of any cost-of-living adjustment made to the benefits under Titles II and XVI of the 35 General Assembly Of North Carolina Session 2025
Page 2 House Bill 59-First Edition
Social Security Act for the preceding calendar year, rounded to the nearest one hundred dollars 1
($100.00). On or before July 1 of each year, the Department of Revenue must determine the 2
income eligibility amount to be in effect for the taxable year beginning the following July 1 and 3
must notify the assessor of each county of the amount to be in effect for that taxable year. 4
…." 5
SECTION 2. This act is effective for taxable years beginning on or after July 1, 6
2026. 7