Expand Homestead Exclusion Inc. Elig. Limit
If enacted, SB 230 would have a notable impact on state laws concerning property taxation, specifically benefiting the elderly and disabled populations in North Carolina. By raising the income limit, the bill is expected to provide essential financial relief to more individuals who may be struggling with property taxes. This change can help alleviate some of the financial burdens faced by these groups, allowing them to remain in their homes and maintain financial stability.
Senate Bill 230, titled 'Expand Homestead Exclusion Inc. Eligibility Limit', aims to increase the income eligibility limit for the elderly or disabled property tax homestead exclusion in North Carolina. The bill proposes raising the current limit from $25,000 to $48,000, which would significantly expand the number of residents eligible for this tax relief. The bill establishes that for taxable years beginning on or after July 1, 2026, this limit shall be adjusted annually based on the cost-of-living adjustments similar to those applied to Social Security benefits, ensuring that the eligibility keeps pace with inflation.
While the bill enjoys support from various advocacy groups and members of the legislature who view it as a necessary update to assist vulnerable populations, there are concerns among fiscal conservatives regarding the implications of increased tax exemptions on state revenue. Critics argue that raising the limit could strain state budgets, potentially affecting funding for other essential services. Nevertheless, supporters emphasize the importance of targeted tax relief for those who have historically relied on such measures for housing stability.