GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S D
SENATE BILL DRS35150-BAf-5B
Short Title: Secure Home, Secure Future Act. (Public)
Sponsors: Senators Theodros, Robinson, and Lowe (Primary Sponsors).
Referred to:
*DRS35150 -BAf-5B*
A BILL TO BE ENTITLED 1
AN ACT TO CREATE THE SECURE HOME AND FUTURE PROPERTY TAX RELIEF 2
BENEFIT. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. Article 12 of Subchapter II of Chapter 105 of the General Statutes is 5
amended by adding a new section to read: 6
"§ 105-277.1E. Secure home and future property tax relief. 7
(a) Classification. – A permanent residence owned and occupied by a qualifying owner 8
is designated a special class of property under Article V, Section 2(2) of the North Carolina 9
Constitution and is taxable in accordance with this section. An owner who receives relief under 10
this section may not receive other property tax relief. 11
(b) Definitions. – The following definitions apply to this section: 12
(1) Owner. – Defined in G.S. 105-277.1. 13
(2) Permanent residence. – Defined in G.S. 105-277.1. 14
(c) Qualifying Owner. – For the purpose of qualifying for the secure home and future 15
property tax relief under this section, a qualifying owner is an owner who meets all of the 16
following requirements as of January 1 preceding the taxable year for which the benefit is 17
claimed: 18
(1) The owner has owned and occupied the property as a permanent residence for 19
the previous 15 consecutive years. 20
(2) The owner is a North Carolina resident. 21
(d) Tax Limitation. – A qualifying owner may defer the portion of the principal amount 22
of tax that is imposed for the current tax year on his or her permanent residence that exceeds the 23
amount due under this subsection. The principal amount of tax due for the current tax year on a 24
permanent residence of a qualifying owner may not exceed the greater of the following: 25
(1) The principal amount of tax due for the preceding tax year, increased by two 26
percent (2%). 27
(2) The amount determined under subsection (e) of this section. 28
(e) Recalculation. – When the value of a property increases due to a physical change to 29
the land or an improvement on the land, other than a change listed under G.S. 105-287(b), the 30
principal amount of tax due on a permanent residence receiving relief under this section is the 31
product of the appraised value of the permanent residence with the change or improvement as of 32
January 1 in the year after the change or improvement occurs multiplied by the property tax rate 33
in effect for the taxable year beginning July 1 of the year in which the property is reappraised. 34
Upon the occurrence of an event triggering this subsection, the taxpayer shall notify the tax 35
assessor of the change no later than the close of the listing period following the change. The 36
FILED SENATE
Mar 19, 2025
S.B. 343
PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
Page 2 DRS35150-BAf-5B
provisions of G.S. 105-312 shall apply for failing to notify the tax assessor as required under this 1
subsection. 2
(f) Temporary Absence. – An otherwise qualifying owner does not lose the benefit of 3
this section because of a temporary absence from his or her permanent residence for reasons of 4
health, or because of an extended absence while confined to a rest home or nursing home, so long 5
as the residence is unoccupied or occupied by the owner's spouse or other dependent. 6
(g) Deferred Taxes. – The difference between the taxes due under this section and the 7
taxes that would have been payable in the absence of this section are a lien on the real property 8
of the taxpayer as provided in G.S. 105-355(a). The difference in taxes must be carried forward 9
in the records of each taxing unit as deferred taxes. The deferred taxes for the preceding three 10
fiscal years are due and payable in accordance with G.S. 105-277.1F when the property loses its 11
eligibility for deferral as a result of a disqualifying event described in subsection (h) of this 12
section. On or before September 1 of each year, the collector must send to the mailing address of 13
a residence on which taxes have been deferred a notice stating the amount of deferred taxes and 14
interest that would be due and payable upon the occurrence of a disqualifying event. 15
(h) Disqualifying Events. – A property loses its eligibility for the benefit provided under 16
this section as a result of a disqualifying event. The tax for the fiscal year that begins in the 17
calendar year in which the disqualifying event occurs is computed as if the property had not been 18
classified for that year for a benefit under this section. Each of the following constitutes a 19
disqualifying event: 20
(1) The owner transfers the residence. Transfer of the residence is not a 21
disqualifying event if (i) the owner transfers the residence to a co-owner of 22
the residence or, as part of a divorce proceeding, to his or her spouse and (ii) 23
that individual occupies or continues to occupy the property as his or her 24
permanent residence. 25
(2) The owner dies. Death of the owner is not a disqualifying event if (i) the 26
owner's share passes to a co-owner of the residence or to his or her spouse and 27
(ii) that individual occupies or continues to occupy the property as his or her 28
permanent residence. 29
(3) The owner ceases to use the property as a permanent residence. 30
(i) Multiple Owners. – A permanent residence owned and occupied by husband and wife 31
is entitled to the full benefit of the secure home and future property tax relief notwithstanding 32
that only one of them meets the length of occupancy and ownership requirements of this section. 33
When a permanent residence is owned and occupied by two or more persons other than husband 34
and wife, no relief is allowed unless all of the owners qualify. 35
(j) Application. – An application for property tax relief provided by this section should 36
be filed during the regular listing period but may be filed and must be accepted at any time up to 37
and through June 1 preceding the tax year for which the relief is claimed. Persons may apply for 38
this property tax relief by entering the appropriate information on a form made available by the 39
assessor under G.S. 105-282.1. 40
(k) Education. – The Local Government Division of the North Carolina Department of 41
Revenue shall post information pertaining to the tax relief provided under this section 42
electronically on its website, which shall include information on who qualifies and how a 43
qualifying taxpayer may apply for tax relief. The Local Government Division of the North 44
Carolina Department of Revenue, in conjunction with county tax assessors, shall also create an 45
educational presentation to be used by county tax assessors at community workshops for the 46
purpose of educating taxpayers on the relief provided under this section. 47
(l) Report. – The Local Government Division of the North Carolina Department of 48
Revenue shall submit a report to the Revenue Laws Study Committee regarding the effectiveness 49
of the tax relief provided under this section. The report shall contain, at a minimum, (i) property 50
tax trends, (ii) the amount of taxpayers receiving the benefit provided in this section, (iii) the 51 General Assembly Of North Carolina Session 2025
DRS35150-BAf-5B Page 3
amount of tax excluded under this section in the previous fiscal year, (iv) any recommendations 1
to improve the tax relief provided under this section, and (v) any other information it deems 2
appropriate. The initial report shall be submitted to the Revenue Laws Study Committee by 3
March 1, 2028, and by that date annually thereafter. 4
(m) Review. – The Revenue Laws Study Committee shall review the effectiveness of the 5
tax relief provided under this section at least every five years to determine whether adjustments 6
are needed to better provide tax relief to taxpayers under this section." 7
SECTION 2. G.S. 105-277.1(b)(3a) reads as rewritten: 8
"(3a) Property tax relief. – The property tax homestead exclusion provided in this 9
section, the property tax homestead circuit breaker provided in 10
G.S. 105-277.1B, or the disabled veteran property tax homestead exclusion 11
provided in G.S. 105-277.1C.G.S. 105-277.1C, or the secure home and future 12
property tax relief provided in G.S. 105-277.1E." 13
SECTION 3. G.S. 105-277.1F(a) reads as rewritten: 14
"(a) Scope. – This section applies to the following deferred tax programs: 15
(1) G.S. 105-275(12), real property owned by a nonprofit corporation held as a 16
protected natural area. 17
(1a) G.S. 105-275(29a), historic district property held as future site of historic 18
structure. 19
(2) G.S. 105-277.1B, the property tax homestead circuit breaker. 20
(2a) (See note for repeal) G.S. 105-277.1D, the inventory property tax deferral. 21
(2b) G.S. 105-277.1E, secure home and future property tax relief. 22
(3) G.S. 105-277.4(c), present-use value property. 23
(4) G.S. 105-277.14, working waterfront property. 24
(4a) G.S. 105-277.15, wildlife conservation land. 25
(4b) G.S. 105-277.15A, site infrastructure land. 26
(5) G.S. 105-278(b), historic property. 27
(6) G.S. 105-278.6(e), nonprofit property held as future site of low- or 28
moderate-income housing." 29
SECTION 4. G.S. 105-282.1(a)(2) reads as rewritten: 30
"(2) Single application required. – An owner of one or more of the following 31
properties eligible for a property tax benefit must file an application for the 32
benefit to receive it. Once the application has been approved, the owner does 33
not need to file an application in subsequent years unless new or additional 34
property is acquired or improvements are added or removed, necessitating a 35
change in the valuation of the property, or there is a change in the use of the 36
property or the qualifications or eligibility of the taxpayer necessitating a 37
review of the benefit. The properties are as follows: 38
a. Property exempted from taxation under G.S. 105-278.2(a), 105-278.3, 39
105-278.4, 105-278.5, 105-278.6, 105-278.7, or 105-278.8. 40
b. Special classes of property excluded from taxation under 41
G.S. 105-275(3), (7), (8), (12), (17), (18), (19), (20), (21), (31e), (35), 42
(36), (38), (39), (41), (45), (46), (47), (48), or (49) or under 43
G.S. 131A-21. 44
c. Special classes of property classified for taxation at a reduced 45
valuation under G.S. 105-277(h), 105-277.02, 105-277.1, 105-277.1C, 46
105-277.10, 105-277.13, 105-277.14, 105-277.15, 105-277.17, or 47
105-278. 48
d. Property owned by a nonprofit homeowners' association but where the 49
value of the property is included in the appraisals of property owned 50
by members of the association under G.S. 105-277.8. 51 General Assembly Of North Carolina Session 2025
Page 4 DRS35150-BAf-5B
e. Repealed by Session Laws 2008-35, s. 1.2, effective for taxes imposed 1
for taxable years beginning on or after July 1, 2008. 2
f. Special classes of property eligible for tax relief under 3
G.S. 105-277.1E." 4
SECTION 5. G.S. 105-284 is amended by adding a new subsection to read: 5
"(e) Property that is subject to a tax assessment limitation under G.S. 105-277.1E." 6
SECTION 6. This act is effective for taxes imposed for taxable years on or after July 7
1, 2026. 8