North Carolina excludes from property taxes the greater of twenty-five thousand dollars ($25,000) or fifty percent (50%) of the appraised value of a permanent residence owned and occupied by a qualifying owner.
Claimant must be a North Carolina resident, 65 years of age or totally and permanently disabled (physician's statement required), and have a combined income of both spouses for the preceding year not to exceed $29,500.
Applications must be made prior to June 1 of the year for which exemption is desired.
Circuit Breaker Program
General Statute 105-277.1B Property Tax Homestead Circuit Breaker Deferment:
North Carolina defers a portion of the property taxes on the appraised value of a permanent residence owned and occupied by a North Carolina resident who has owned and occupied the property at least 5 years, is at least 65 years of age or is totally & permanently disabled, and whose income does not exceed $29,500. If the owner’s income is $29,500 or less, then the portion of property taxes imposed on the residence that exceeds 4% of the owner’s income may be deferred. If the owner’s income is more than $29,500 but less than or equal to $44,250, then the portion of the property taxes on the residence that exceeds 5% of the owner’s income may be deferred.
The deferred taxes become a lien on the residence and the most recent three years of deferred taxes preceding a disqualifying event become due with interest upon one of the following disqualifying events: 1) the owner transfers the residence; 2) the owner dies; or 3) the owner ceases to use the property as a permanent residence. Multiple owners of a permanent residence must all qualify for the circuit breaker before a deferment of taxes will be allowed.
You must apply for the opportunity to defer property taxes each and every year that you wish to defer taxes. The application may be obtained from the county tax department and it must be filed with the county assessor by June 1.
Note: An owner who qualifies for both the property tax homestead exclusion and the property tax homestead circuit breaker may elect to take only one of these forms of property tax relief.
Veterans with Disabilities
Effective January 1, 2009 North Carolina General Statute 105-277.1(c) established a North Carolina property tax exclusion for veterans who have a permanent and total service connected disability from the US Department of Veterans Affairs.
Unmarried Widow: The law also provides that the widow of a qualifying veteran who has never remarried is eligible for the tax exclusion.
Applications can be made at the Buncombe County Tax Office at 35 Woodfin St Ste 307 after January 1st. Applications must be supported by form NCDVA-9 from the North Carolina Division of Veterans Affairs. (DOWNLOAD FORM) This form certifies that the veterans permanent and total disability is service connected.
Once you have obtained the NCDVA-9 form you can contact the North Carolina Division of Veterans Affairs at 828-250-5726 for assistance in completing the form.