WeVote
Log In

Bill

WeVote Research Nonpartisan
Bill Summary · SB 230

SB 230 — Expand Homestead Exclusion Income Eligibility Limit (North Carolina)

Status: Passed 1st Reading; Enacted (Chapter 404, Statutes of 2025)
Introduced: January 28, 2025
Primary subject areas: Aging, Disabled Persons, Property, Real Estate, Revenue, Tax Exemptions, Property Taxation

Purpose

To expand eligibility for North Carolina’s Elderly or Disabled Property Tax Homestead Exclusion by raising the household income limit that determines who may claim the exclusion. The change is intended to allow more low- and moderate‑income elderly and disabled homeowners to qualify for a partial property tax exclusion.

Key provisions

  • Amends G.S. 105‑277.1(a2) to set the income eligibility limit for the homestead exclusion at $48,000 for the taxable year beginning July 1, 2025 (replacing the prior $25,000 base).
  • For taxable years beginning on or after July 1, 2026, the income eligibility limit will be adjusted annually. The adjustment equals the same percentage increase (if any) as the cost‑of‑living adjustment (COLA) applied to Social Security benefits (Titles II and XVI of the Social Security Act) for the preceding calendar year.
  • Adjusted income limits are rounded to the nearest $100.
  • The North Carolina Department of Revenue (NCDOR) must determine the income eligibility amount each year on or before July 1 and notify county assessors of the amount to be used for the taxable year beginning the following July 1.
  • Effective date: applies to taxes imposed for taxable years beginning on or after July 1, 2025.

Who is affected

  • Primary beneficiaries: elderly and disabled homeowners seeking the Elderly or Disabled Homestead Exclusion whose household income is at or below the new limit (initially $48,000).
  • Local governments and taxing units: may experience changes in property tax bases and receipts to the extent more homeowners qualify for the exclusion.
  • County tax assessors and NCDOR: administrative duties include implementing the new limit, annual calculations, and notifications.

Potential impacts

  • Increased eligibility likely expands the number of homeowners receiving the exclusion, reducing taxable assessed value for eligible properties and potentially lowering property tax revenues for local jurisdictions to some degree.
  • Fiscal impact (statewide or local) will depend on how many additional homeowners qualify and the amount excluded; no revenue estimates are specified in the bill text.
  • Administrative impact: modest — NCDOR already calculates and communicates the eligibility figure annually; counties apply the exclusion during property tax assessments.

Procedural/timeline notes

  • The statutory change is effective for taxable years beginning July 1, 2025 — meaning the $48,000 limit applies to property tax calculations for the 2025–2026 tax year.
  • Thereafter, the limit will be indexed annually using the Social Security COLA mechanism, with NCDOR notification required by July 1 each year.

Legislative history

  • Introduced Jan. 28, 2025. Passed both chambers and approved by the Governor. Chaptered as Chapter 404, Statutes of 2025.

If you want, I can:
- Draft a short plain‑language flyer for seniors and disabled homeowners explaining the new eligibility and how to claim the exclusion; or
- Outline likely fiscal scenarios for counties based on different uptake rates (requires assumptions about number of households and average exclusion amounts).

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.