Bill
HB 94
Allows disabled veterans and qualifying spouses to prequalify for the disabled‑veteran homestead tax exclusion before buying a home, with a 30‑day eligibility notice.
Status / Key Dates
- Bill: HB 94 (2025 session, North Carolina)
- Sponsor: Rep. Paré (primary sponsors list available in bill text)
- Action: Introduced Feb 10, 2025 (see bill text)
- Effective for taxes imposed for taxable years beginning on or after July 1, 2025.
- Statutory target: Amends G.S. 105‑277.1C (Disabled veteran property tax homestead exclusion).
Purpose
- To allow disabled veterans (and surviving spouses who have not remarried) to prequalify, before buying a home, for the existing disabled‑veteran homestead property tax exclusion so taxpayers — and lenders — can determine in advance whether the tax benefit will be available for a proposed primary residence.
What the bill does — Key provisions
- Adds a “Prequalification” option to G.S. 105‑277.1C:
- A disabled veteran or an unmarried surviving spouse may apply for prequalification even if they do not yet own a permanent residence.
- Applications for prequalification may be filed at any time and must use a form approved by the Department (assessor must make forms available).
- Prequalification applications must include a copy of the veteran’s disability certification or evidence of benefits under 38 U.S.C. § 2101.
- The county assessor receiving a prequalification application must notify the applicant whether they qualify for the exclusion within 30 days.
- Once the prequalified applicant purchases a permanent residence, they must submit the standard application for the exclusion (as required under existing law) during the regular listing period or by June 1 preceding the tax year claimed.
- Clarifies that an assessor may accept the prequalification notice in lieu of the veteran’s disability certification when establishing eligibility at the time of the exclusion application.
Who is affected
- Primary beneficiaries: disabled veterans (and surviving spouses who have not remarried) who may purchase a primary residence and wish to know in advance whether the property will qualify for the disabled‑veteran homestead exclusion.
- County tax assessors: required to accept and process prequalification applications, provide forms, and issue eligibility notices within 30 days.
- Lenders and mortgage underwriters: may use prequalification determinations when calculating payment or underwriting decisions.
Procedural / timeline notes
- Prequalification can be sought at any time (no ownership required at application).
- Regular exclusion application deadlines remain in place: applications should be filed during the regular listing period but may be accepted through June 1 preceding the tax year.
- The bill becomes effective for taxable years beginning on or after July 1, 2025.
Potential impacts
- Practical: Facilitates housing transactions and mortgage underwriting by providing earlier certainty about a major property tax benefit for eligible veterans.
- Administrative: Requires county assessor offices to process prequalification applications and issue determinations within 30 days; workload increase likely modest but depends on application volume.
- Fiscal: The prequalification itself does not change tax law; the exclusion still applies only once claimed for a qualifying residence. Any long‑term effect on local property tax revenues depends on how many additional eligible properties ultimately receive the exclusion.
For reference
- Amends: G.S. 105‑277.1C (Disabled veteran property tax homestead exclusion) — see bill text for exact statutory language and procedural details.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
