Property Tax Relief Programs

Property Tax Homestead Exclusion for Elderly or Disabled Persons – G.S.105-277.1

This program excludes from taxation the first $25,000 or 50% (whichever is greater) of the assessed value of a qualifying owners permanent residence. Exclusion means some of the property’s value will not be considered when your tax bill is created. If you do not qualify for the program in future years, the excluded value from prior years does not become taxable.

1. Qualifying owners must be 65 years of age as of January 1, 2012, OR totally and permanently disabled.
2. Applicants must be permanent North Carolina residents and own and occupy the property as their permanent legal residence.
3. All income for the previous year (2011) cannot be more than $27,100 (includes income of both spouses).
4. Income for the purpose of this exclusion means ALL monies received from every source other than gifts or inheritances received from a spouse, lineal ancestor or lineal descendant. Income includes taxable and tax exempt social security, rents, alimony, gifts, dividends, disability, IRA distributions, pensions, VA income, etc.
5. Tax relief provided to qualifying applicants is the exclusion from taxation of the first $25,000 OR 50% of the appraised value, whichever is greater, of the applicant’s permanent legal residence, including up to 1 acre of land
6. Once approved for the Elderly or Disabled Exclusion, you do not need to reapply UNLESS your permanent residence has changed, your income now exceeds the current annual income eligibility limit, or you are no longer totally and permanently disabled.
7. Failure to notify the assessor that the property owner no longer qualifies for this exclusion will cause the property to be subject to discovery with penalties and interest pursuant to G.S. 105-312.
8. This exclusion program can be combined with the Disabled Veterans program on the same property only when there are multiple owners of the property; benefit limitations apply. Husband and wife are not considered multiple owners.

HOW TO APPLY

FORM AV-9
FORM AV-9A

1. Qualifying property owners must complete a one-time application form called AV-9 and submit the signed AV-9 application, along with all supporting documentation as outlined on the application, to the Tax Administration office no later than JUNE 1, 2012. Supporting documentation includes, but is not limited to: copies of your 1099’s, Federal income tax returns, all other income statements, death certificate if spouse is deceased, a copy of divorce or separation agreement and proof of residency. If you did not receive this exclusion last year but are now eligible, you may obtain the application by clicking on the AV-9 link listed above or from the Tax Administration office by calling 910-678-7507.
1. If you are applying for the Exclusion based on being Totally and Permanently Disabled, AND you or your spouse (if applicable) are under age 65 on January 1, 2012, you must also have a licensed NC Physician complete and sign one additional form called the AV-9A (Certification of Disability) for determining "Totally and Permanently disabled" status. The completed AV-9A Certification of Disability must be submitted with the completed AV-9 application by June 1, 2012 for all qualifying property owner(s) applying for the Homestead Exclusion for Totally and Permanently Disabled.
2. NOTE: Applications received late, unsigned, or without all of the required documentation may result in a non-approval of your application. However, if you will not be able to obtain all of the supporting documents by JUNE 1, 2012, please sign and submit your completed application AV-9 (and AV-9A, if applicable), BEFORE THE JUNE 1ST DEADLINE and submit your remaining documents as soon as possible.

Back to Top

Property Tax Homestead Circuit Breaker - Deferred Property Taxes – G.S.105-277.1B

You must file an application for the Circuit Breaker Tax Deferment Program each year by June 1st ! This program limits property taxes to a percentage of the qualifying owner’s income. Taxes above the limitation amount become deferred, which means delayed until a future date; upon a disqualifying event, the last three years of deferred taxes plus interest become due.

1. Qualifying owners must be 65 years of age, OR totally and permanently disabled.
2. Participation in this program requires ALL owners to apply and qualify each year; benefit limitations apply. Husband and wife are not considered multiple owners.
3. Applicants must be permanent North Carolina residents, and must have owned and occupied the property as the owner’s permanent, legal residence for at least the last five calendar years prior to January 1, 2012.
4. A new application and income verification must be submitted to the Tax Administration office every year by June 1st to continue in this program.
5. The total of all income for the previous calendar year (2011) cannot exceed $40,650.
6. If the total income for the previous calendar year (2011) is $27,100 or less, property taxes will be limited to 4% of income.
7. If the total income for the previous calendar year (2011) is more than $27,100 but not more than $40,650, property taxes will be limited to 5% of income
8. The deferred taxes are a lien on the property until paid in full.
9. The following is a list of disqualifying events that will result with the last three years (may not be consecutive) of deferred taxes becoming due and payable, with interest:
   1. Death of the owner (deferred taxes become due the first day of the ninth month after death)
   2. Transfer of the property (deferred taxes become due immediately)
   3. Owner ceases using the property as the permanent residence (deferred taxes become due immediately)
10. This program cannot be combined with any other tax relief program; if owner qualifies for more than one tax relief program, the owner must decide which program to use.

HOW TO APPLY

FORM AV-9
FORM AV-9A

1. Qualifying property owners must complete an application called the AV-9 and submit the signed AV-9 application, along with all supporting documentation as outlined on the application, to the Tax Administration office no later than JUNE 1, 2012 each year. Supporting documentation includes, but is not limited to: copies of your 1099’s, Federal income tax returns, all other income statements, death certificate if spouse is deceased, a copy of divorce or separation agreement and proof of residency for previous five (5) years. If you did not receive the Circuit Breaker Deferment last year but you are now eligible, you may obtain the AV-9 application by clicking on the link or from the Tax Administration office by calling 910-678-7507.
1. If you are applying for the Circuit Breaker Deferment based on being Totally and Permanently Disabled, AND you or your spouse (if applicable) are under age 65 on January 1, 2012, you must also have a licensed NC Physician complete and sign one additional form called the AV-9A (Certification of Disability) for determining "Totally and Permanently disabled" status. The completed AV-9A Certification of Disability must be submitted with the completed AV-9 application by June 1, 2012 for all qualifying property owner(s) applying for the Homestead Exclusion for Totally and Permanently Disabled.
2. NOTE: Applications received late, unsigned, or without all of the required documentation may result in a non-approval of your application. However, if you will not be able to obtain all of the supporting documents by JUNE 1, 2012, please sign and submit your completed application AV-9 (and AV-9A, if applicable), BEFORE THE JUNE 1ST DEADLINE and submit your remaining documents as soon as possible.

Back to Top

Disabled Veteran/Surviving Spouse Exclusion for Property Taxes – G.S.105-277.1C

This program excludes up to the first $45,000 of the appraised value of the permanent residence of a qualifying disabled veteran or to the surviving spouse, who has not remarried, of a qualified disabled veteran.

1. There is no age or income requirement for this program.
2. Applicants must be permanent North Carolina residents and own and occupy the property as their permanent legal residence.
3. This exclusion program can be combined with the Homestead Exclusion for Elderly and Disabled property owners program on the same property only when there are multiple owners of the property; benefit limitations apply. Husband and wife are not considered multiple owners.
4. In the case of multiple owners, each owner must file a separate application. If eligible, each owner may receive benefits under the Disabled Veteran Exclusion or the Elderly/Disabled Exclusion. The Circuit Breaker Property Tax Deferment cannot be combined with either of these two programs.
5. As of January 1, 2012 disabled veterans, and surviving spouses of disabled veterans who have not remarried, who served with any branch of the U.S. armed forces qualify if:
   1. They are a veteran whose character of service at separation was honorable or under honorable conditions, AND who has a total and permanent service-connected disability OR who received benefits for specially adapted housing under 38 U.S.C. 2101.
   2. They are a surviving spouse (who has not remarried) of a totally and permanently disabled veteran whose disability was service-connected and whose character of service at separation was honorable or under honorable conditions OR the surviving spouse (who has not remarried) of a veteran who was a service member that died from a service-connected condition, or while on active duty in the line of duty and not as a result of the service members own willful misconduct.
6. A one-time application is required. If you received this exclusion last year, you do not need to reapply UNLESS you have changed your permanent residence OR you no longer meet the above requirements for the exclusion. (Failure to notify the assessor that the property no longer qualifies for this exclusion will cause the property to be subject to discovery with penalties and interest pursuant to G.S. 105-312)

HOW TO APPLY

FORM AV-9
FORM NCDVA-9

1. Qualifying Applicants must submit a signed, completed application form called the AV-9 and the completed NCDVA-9 form, along with ALL required supporting documentation to the Tax Administration office by June 1, 2012. The required application AV-9 and the required NCDVA-9 forms are available by calling 910-678-7507 or clicking on the link above. Required documentation would include, but is not limited to:
1. NCDVA-9, Certification for Disabled Veteran’s Property Tax Exclusion that has been certified by the U.S. Department of Veterans Affairs
2. If applicable, documentation by the Department of Veterans Affairs that the applicant received benefit for specially adapted housing under 38 U.S.C. 2101
3. Other supporting documentation would include: copy of death certificate, marriage certificate, casualty report, power of attorney, and/or documentation proving permanent residence.

NOTE: Applications received late, unsigned, or without all of the required documentation may result in a non-approval of your application. However, if you will not be able to obtain all of the supporting documents by JUNE 1, 2012, please sign and submit your completed application Form AV-9 and Form NCDVA-9 BEFORE THE JUNE 1ST DEADLINE and submit your remaining documents as soon as possible.

Back to Top