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HB 341

Property Tax Credit - Retail Service Station Conversions

2025 Regular Session Introduced by Nick Allen and 12 co-sponsors

Expands NC's disabled veteran homestead tax exclusion, tying it to VA disability rating (up to $100,000) with a surviving-spouse option; applies for 2025–26 and later.

Hearing 2/04 at 1:00 p.m.
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Bill Summary · HB 341

Summary — HB 341: Disabled Veterans Tax Relief Bill (North Carolina, 2025)

Status: Passed First Reading (Mar 11, 2025)
Primary sponsors: Representatives Cunningham, Goodwin, and Majeed
Referred to: Homeland Security and Military & Veterans Affairs → Finance → Rules
Effective date (if enacted): Applies to taxes imposed for taxable years beginning on or after July 1, 2025.

Purpose / Intent

To expand and recalibrate the existing homestead property tax exclusion for disabled veterans by tying the amount of the exclusion to the veteran’s VA disability rating, thereby lowering the taxable appraised value of qualifying primary residences for disabled veterans and, in some cases, their surviving spouses.

Key provisions

  • Amends G.S. 105-277.1C (Disabled veteran property tax homestead exclusion).
  • For qualifying disabled veterans, the bill replaces the flat $45,000 exclusion with a graduated exclusion based on VA disability rating:
    • 70% or greater disability rating → $100,000 exclusion
    • 50%–69% → $75,000 exclusion
    • 30%–49% → $50,000 exclusion
    • 10%–29% → $25,000 exclusion
  • Surviving spouse provision: a surviving spouse may claim the greater of (a) the exclusion amount the veteran qualified for at the veteran’s date of death or (b) the standard $45,000, provided the spouse submits VA certification that the veteran’s death was service-connected.
  • Definitions and eligibility: clarifies “disabled veteran” to require certification from the U.S. Department of Veterans Affairs (or other federal agency) reflecting the applicable disability rating or other qualifying status (e.g., receipt of benefits under 38 U.S.C. §2101).
  • Co-owners (not spouses): each co-owner must apply separately; exclusion amounts are subject to a co-owner’s proportionate share of property valuation and may not exceed statutory limits.
  • Application process: applicants should file during the regular listing period but may file any time up to and through June 1 preceding the tax year. Applicants must provide a copy of the veteran’s VA disability certification (or evidence of benefits under 38 U.S.C. §2101).

Who is affected

  • Primary beneficiaries: disabled veterans who own and occupy a primary residence and meet the certification criteria; eligible surviving spouses.
  • Local governments and tax offices: must process new applications and apply the revised exclusions when calculating taxable valuations.
  • Potential fiscal impact: larger exclusions will reduce taxable property values for qualifying owners, which may decrease property tax revenue for counties/municipalities. The bill does not include an explicit fiscal estimate in the text; actual revenue effects depend on the number of qualifying veterans, local valuations, and tax rates.

Procedural / timeline notes

  • Introduced and read first on March 11, 2025; referred through the standard committee path for military/veterans and tax matters.
  • If enacted, the changes take effect for taxable years beginning on or after July 1, 2025 (i.e., property tax bills for the 2025–2026 tax year and later).

If you want, I can:
- Draft a short fiscal-impact note estimating likely local revenue effects given veteran population data, or
- Produce a one-page explainer for veterans describing eligibility documentation and the application timeline.

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

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