GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S D
SENATE BILL DRS45116-NIf-22B
Short Title: Disabled Veterans Tax Relief Bill. (Public)
Sponsors: Senators Brinson and B. Newton (Primary Sponsors).
Referred to:
*DRS45116 -NIf-22B*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY THE DISABLED VETERAN PROPERTY TAX HOMESTEAD 2
EXCLUSION TO EXCLUDE FROM TAXATION THE PERCENTAGE OF APPRAISED 3
VALUE OF A PRIMARY RESIDENCE OWNED BY A DISABLED VETERAN THAT IS 4
EQUAL TO THE VETERAN'S DISABILITY RATING. 5
The General Assembly of North Carolina enacts: 6
SECTION 1. G.S. 105-277.1C reads as rewritten: 7
"§ 105-277.1C. Disabled veteran property tax homestead exclusion. 8
(a) Classification. – A permanent residence owned and occupied by a qualifying owner 9
is designated a special class of property under Article V, Section 2(2) of the North Carolina 10
Constitution and is taxable in accordance with this section. The first forty-five thousand dollars 11
($45,000) of appraised value of the residence is excluded from taxation. A qualifying owner who 12
receives an exclusion under this section may not receive other property tax relief. The amount 13
excluded from taxation is as follows: 14
(1) Disabled veteran exclusion. – For a disabled veteran, the exclusion amount is 15
the product of (i) the appraised value of the residence and (ii) the percentage 16
of the qualifying owner's disability rating, as determined by the United States 17
Department of Veterans Affairs. 18
(2) Surviving spouse exclusion. – For the surviving spouse of a disabled veteran, 19
the exclusion amount is equal to the greater of (i) the amount excluded under 20
subdivision (1) of this subsection as of the date of the disabled veteran's death 21
or (ii) the first forty-five thousand dollars ($45,000) of appraised value of the 22
permanent residence, provided that the applicant establishes eligibility for 23
such exclusion by providing certification from the United States Department 24
of Veterans Affairs that, as of January 1 preceding the taxable year for which 25
the exclusion is claimed, the veteran's death was the result of a 26
service-connected condition. 27
(b) Definitions. – The following definitions apply in this section: 28
(1) Disabled veteran. – A veteran of any branch of the Armed Forces of the United 29
States whose character of service at separation was honorable or under 30
honorable conditions and who satisfies one of the following requirements:has 31
received a certification by the United States Department of Veterans Affairs 32
indicating that, as of January 1 preceding the taxable year for which the 33
exclusion allowed by this section is claimed, the veteran has been assigned a 34
disability rating of fifty percent (50%) or greater for a service-connected 35
condition. 36
FILED SENATE
Mar 4, 2025
S.B. 228
PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
Page 2 DRS45116-NIf-22B
a. As of January 1 preceding the taxable year for which the exclusion 1
allowed by this section is claimed, the veteran had received benefits 2
under 38 U.S.C. § 2101. 3
b. The veteran has received a certification by the United States 4
Department of Veterans Affairs or another federal agency indicating 5
that, as of January 1 preceding the taxable year for which the exclusion 6
allowed by this section is claimed, he or she has a service-connected, 7
permanent, and total disability. 8
c. The veteran is deceased and the United States Department of Veterans 9
Affairs or another federal agency has certified that, as of January 1 10
preceding the taxable year for which the exclusion allowed by this 11
section is claimed, the veteran's death was the result of a 12
service-connected condition. 13
… 14
(e) Other Multiple Owners. – This subsection applies to co-owners who are not husband 15
and wife. Each co-owner of a permanent residence must apply separately for the exclusion 16
allowed under this section. 17
When one or more co-owners of a permanent residence qualify for the exclusion allowed 18
under this section and none of the co-owners qualifies for the exclusion allowed under 19
G.S. 105-277.1, each co-owner is entitled to the full amount of the exclusion allowed under this 20
section. The exclusion allowed to one co-owner may not exceed the co-owner's proportionate 21
share of the valuation of the property, and the amount of the exclusion allowed to all the 22
co-owners may not exceed the exclusion allowed under this section.property. 23
When one or more co-owners of a permanent residence qualify for the exclusion allowed 24
under this section and one or more of the co-owners qualify for the exclusion allowed under 25
G.S. 105-277.1, each co-owner who qualifies for the exclusion allowed under this section is 26
entitled to the full amount of the exclusion. The exclusion allowed to one co-owner may not 27
exceed the co-owner's proportionate share of the valuation of the property, and the amount of the 28
exclusion allowed to all the co-owners may not exceed the greater of the exclusion allowed under 29
this section and the exclusion allowed under G.S. 105-277.1. 30
(f) Application. – An application for the exclusion allowed under this section should be 31
filed during the regular listing period, but may be filed and must be accepted at any time up to 32
and through June 1 preceding the tax year for which the exclusion is claimed. An applicant for 33
an exclusion under this section must establish eligibility for the exclusion by providing a copy of 34
the veteran's disability certification or evidence of benefits received under 38 U.S.C. § 35
2101.certification." 36
SECTION 2. This act is effective for taxes imposed for taxable years beginning on 37
or after July 1, 2025. 38