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North Carolina Senate Bill S343

North Carolina 2025-2026 Regular Session

North Carolina Senate Bill S343 Compare Versions

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11 GENERAL ASSEMBLY OF NORTH CAROLINA
22 SESSION 2025
3-S 1
4-SENATE BILL 343
3+S D
4+SENATE BILL DRS35150-BAf-5B
5+
56
67
78 Short Title: Secure Home, Secure Future Act. (Public)
89 Sponsors: Senators Theodros, Robinson, and Lowe (Primary Sponsors).
9-Referred to: Rules and Operations of the Senate
10-March 20, 2025
11-*S343 -v-1*
10+Referred to:
11+
12+*DRS35150 -BAf-5B*
1213 A BILL TO BE ENTITLED 1
1314 AN ACT TO CREATE THE SECURE HOME AND FUTURE PROPERTY TAX RELIEF 2
1415 BENEFIT. 3
1516 The General Assembly of North Carolina enacts: 4
1617 SECTION 1. Article 12 of Subchapter II of Chapter 105 of the General Statutes is 5
1718 amended by adding a new section to read: 6
1819 "§ 105-277.1E. Secure home and future property tax relief. 7
1920 (a) Classification. – A permanent residence owned and occupied by a qualifying owner 8
2021 is designated a special class of property under Article V, Section 2(2) of the North Carolina 9
2122 Constitution and is taxable in accordance with this section. An owner who receives relief under 10
2223 this section may not receive other property tax relief. 11
2324 (b) Definitions. – The following definitions apply to this section: 12
2425 (1) Owner. – Defined in G.S. 105-277.1. 13
2526 (2) Permanent residence. – Defined in G.S. 105-277.1. 14
2627 (c) Qualifying Owner. – For the purpose of qualifying for the secure home and future 15
2728 property tax relief under this section, a qualifying owner is an owner who meets all of the 16
2829 following requirements as of January 1 preceding the taxable year for which the benefit is 17
2930 claimed: 18
3031 (1) The owner has owned and occupied the property as a permanent residence for 19
3132 the previous 15 consecutive years. 20
3233 (2) The owner is a North Carolina resident. 21
3334 (d) Tax Limitation. – A qualifying owner may defer the portion of the principal amount 22
3435 of tax that is imposed for the current tax year on his or her permanent residence that exceeds the 23
3536 amount due under this subsection. The principal amount of tax due for the current tax year on a 24
3637 permanent residence of a qualifying owner may not exceed the greater of the following: 25
3738 (1) The principal amount of tax due for the preceding tax year, increased by two 26
3839 percent (2%). 27
3940 (2) The amount determined under subsection (e) of this section. 28
4041 (e) Recalculation. – When the value of a property increases due to a physical change to 29
4142 the land or an improvement on the land, other than a change listed under G.S. 105-287(b), the 30
4243 principal amount of tax due on a permanent residence receiving relief under this section is the 31
4344 product of the appraised value of the permanent residence with the change or improvement as of 32
4445 January 1 in the year after the change or improvement occurs multiplied by the property tax rate 33
4546 in effect for the taxable year beginning July 1 of the year in which the property is reappraised. 34
4647 Upon the occurrence of an event triggering this subsection, the taxpayer shall notify the tax 35
47-assessor of the change no later than the close of the listing period following the change. The 36 General Assembly Of North Carolina Session 2025
48-Page 2 Senate Bill 343-First Edition
48+assessor of the change no later than the close of the listing period following the change. The 36
49+FILED SENATE
50+Mar 19, 2025
51+S.B. 343
52+PRINCIPAL CLERK General Assembly Of North Carolina Session 2025
53+Page 2 DRS35150-BAf-5B
4954 provisions of G.S. 105-312 shall apply for failing to notify the tax assessor as required under this 1
5055 subsection. 2
5156 (f) Temporary Absence. – An otherwise qualifying owner does not lose the benefit of 3
5257 this section because of a temporary absence from his or her permanent residence for reasons of 4
5358 health, or because of an extended absence while confined to a rest home or nursing home, so long 5
5459 as the residence is unoccupied or occupied by the owner's spouse or other dependent. 6
5560 (g) Deferred Taxes. – The difference between the taxes due under this section and the 7
5661 taxes that would have been payable in the absence of this section are a lien on the real property 8
5762 of the taxpayer as provided in G.S. 105-355(a). The difference in taxes must be carried forward 9
5863 in the records of each taxing unit as deferred taxes. The deferred taxes for the preceding three 10
5964 fiscal years are due and payable in accordance with G.S. 105-277.1F when the property loses its 11
6065 eligibility for deferral as a result of a disqualifying event described in subsection (h) of this 12
6166 section. On or before September 1 of each year, the collector must send to the mailing address of 13
6267 a residence on which taxes have been deferred a notice stating the amount of deferred taxes and 14
6368 interest that would be due and payable upon the occurrence of a disqualifying event. 15
6469 (h) Disqualifying Events. – A property loses its eligibility for the benefit provided under 16
6570 this section as a result of a disqualifying event. The tax for the fiscal year that begins in the 17
6671 calendar year in which the disqualifying event occurs is computed as if the property had not been 18
6772 classified for that year for a benefit under this section. Each of the following constitutes a 19
6873 disqualifying event: 20
6974 (1) The owner transfers the residence. Transfer of the residence is not a 21
7075 disqualifying event if (i) the owner transfers the residence to a co-owner of 22
7176 the residence or, as part of a divorce proceeding, to his or her spouse and (ii) 23
7277 that individual occupies or continues to occupy the property as his or her 24
7378 permanent residence. 25
7479 (2) The owner dies. Death of the owner is not a disqualifying event if (i) the 26
7580 owner's share passes to a co-owner of the residence or to his or her spouse and 27
7681 (ii) that individual occupies or continues to occupy the property as his or her 28
7782 permanent residence. 29
7883 (3) The owner ceases to use the property as a permanent residence. 30
7984 (i) Multiple Owners. – A permanent residence owned and occupied by husband and wife 31
8085 is entitled to the full benefit of the secure home and future property tax relief notwithstanding 32
8186 that only one of them meets the length of occupancy and ownership requirements of this section. 33
8287 When a permanent residence is owned and occupied by two or more persons other than husband 34
8388 and wife, no relief is allowed unless all of the owners qualify. 35
8489 (j) Application. – An application for property tax relief provided by this section should 36
8590 be filed during the regular listing period but may be filed and must be accepted at any time up to 37
8691 and through June 1 preceding the tax year for which the relief is claimed. Persons may apply for 38
8792 this property tax relief by entering the appropriate information on a form made available by the 39
8893 assessor under G.S. 105-282.1. 40
8994 (k) Education. – The Local Government Division of the North Carolina Department of 41
9095 Revenue shall post information pertaining to the tax relief provided under this section 42
9196 electronically on its website, which shall include information on who qualifies and how a 43
9297 qualifying taxpayer may apply for tax relief. The Local Government Division of the North 44
9398 Carolina Department of Revenue, in conjunction with county tax assessors, shall also create an 45
9499 educational presentation to be used by county tax assessors at community workshops for the 46
95100 purpose of educating taxpayers on the relief provided under this section. 47
96101 (l) Report. – The Local Government Division of the North Carolina Department of 48
97102 Revenue shall submit a report to the Revenue Laws Study Committee regarding the effectiveness 49
98103 of the tax relief provided under this section. The report shall contain, at a minimum, (i) property 50
99104 tax trends, (ii) the amount of taxpayers receiving the benefit provided in this section, (iii) the 51 General Assembly Of North Carolina Session 2025
100-Senate Bill 343-First Edition Page 3
105+DRS35150-BAf-5B Page 3
101106 amount of tax excluded under this section in the previous fiscal year, (iv) any recommendations 1
102107 to improve the tax relief provided under this section, and (v) any other information it deems 2
103108 appropriate. The initial report shall be submitted to the Revenue Laws Study Committee by 3
104109 March 1, 2028, and by that date annually thereafter. 4
105110 (m) Review. – The Revenue Laws Study Committee shall review the effectiveness of the 5
106111 tax relief provided under this section at least every five years to determine whether adjustments 6
107112 are needed to better provide tax relief to taxpayers under this section." 7
108113 SECTION 2. G.S. 105-277.1(b)(3a) reads as rewritten: 8
109114 "(3a) Property tax relief. – The property tax homestead exclusion provided in this 9
110115 section, the property tax homestead circuit breaker provided in 10
111116 G.S. 105-277.1B, or the disabled veteran property tax homestead exclusion 11
112117 provided in G.S. 105-277.1C.G.S. 105-277.1C, or the secure home and future 12
113118 property tax relief provided in G.S. 105-277.1E." 13
114119 SECTION 3. G.S. 105-277.1F(a) reads as rewritten: 14
115120 "(a) Scope. – This section applies to the following deferred tax programs: 15
116121 (1) G.S. 105-275(12), real property owned by a nonprofit corporation held as a 16
117122 protected natural area. 17
118123 (1a) G.S. 105-275(29a), historic district property held as future site of historic 18
119124 structure. 19
120125 (2) G.S. 105-277.1B, the property tax homestead circuit breaker. 20
121126 (2a) (See note for repeal) G.S. 105-277.1D, the inventory property tax deferral. 21
122127 (2b) G.S. 105-277.1E, secure home and future property tax relief. 22
123128 (3) G.S. 105-277.4(c), present-use value property. 23
124129 (4) G.S. 105-277.14, working waterfront property. 24
125130 (4a) G.S. 105-277.15, wildlife conservation land. 25
126131 (4b) G.S. 105-277.15A, site infrastructure land. 26
127132 (5) G.S. 105-278(b), historic property. 27
128133 (6) G.S. 105-278.6(e), nonprofit property held as future site of low- or 28
129134 moderate-income housing." 29
130135 SECTION 4. G.S. 105-282.1(a)(2) reads as rewritten: 30
131136 "(2) Single application required. – An owner of one or more of the following 31
132137 properties eligible for a property tax benefit must file an application for the 32
133138 benefit to receive it. Once the application has been approved, the owner does 33
134139 not need to file an application in subsequent years unless new or additional 34
135140 property is acquired or improvements are added or removed, necessitating a 35
136141 change in the valuation of the property, or there is a change in the use of the 36
137142 property or the qualifications or eligibility of the taxpayer necessitating a 37
138143 review of the benefit. The properties are as follows: 38
139144 a. Property exempted from taxation under G.S. 105-278.2(a), 105-278.3, 39
140145 105-278.4, 105-278.5, 105-278.6, 105-278.7, or 105-278.8. 40
141146 b. Special classes of property excluded from taxation under 41
142147 G.S. 105-275(3), (7), (8), (12), (17), (18), (19), (20), (21), (31e), (35), 42
143148 (36), (38), (39), (41), (45), (46), (47), (48), or (49) or under 43
144149 G.S. 131A-21. 44
145150 c. Special classes of property classified for taxation at a reduced 45
146151 valuation under G.S. 105-277(h), 105-277.02, 105-277.1, 105-277.1C, 46
147152 105-277.10, 105-277.13, 105-277.14, 105-277.15, 105-277.17, or 47
148153 105-278. 48
149154 d. Property owned by a nonprofit homeowners' association but where the 49
150155 value of the property is included in the appraisals of property owned 50
151156 by members of the association under G.S. 105-277.8. 51 General Assembly Of North Carolina Session 2025
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153158 e. Repealed by Session Laws 2008-35, s. 1.2, effective for taxes imposed 1
154159 for taxable years beginning on or after July 1, 2008. 2
155160 f. Special classes of property eligible for tax relief under 3
156161 G.S. 105-277.1E." 4
157162 SECTION 5. G.S. 105-284 is amended by adding a new subsection to read: 5
158163 "(e) Property that is subject to a tax assessment limitation under G.S. 105-277.1E." 6
159164 SECTION 6. This act is effective for taxes imposed for taxable years on or after July 7
160165 1, 2026. 8