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Bill

HB 39

Property tax refund program-revisions.

2025 Regular Session

HB 39 grants a property tax exclusion for motor vehicles owned by VA-certified 100% disabled veterans, effective Jan 1, 2026.

Assigned Chapter Number 51
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WeVote Research Nonpartisan
Bill Summary · HB 39

HB 39 — Disabled Veteran Motor Vehicle Tax Exclusion

Status: Passed 1st Reading
Introduced: August 15, 2025
Subject areas: Veterans, Motor vehicles, Property taxation, Tax exemptions

Purpose / Intent

HB 39 creates a targeted property tax exemption for motor vehicles owned by veterans who have a 100% disability rating as certified by the United States Department of Veterans Affairs (VA). The bill is intended to provide direct tax relief to severely disabled veterans by removing qualifying vehicles from the local property tax base.

Key provisions

  • Amends G.S. 105‑275 (Property classified and excluded from the tax base) to add a new exclusion:
    • Motor vehicles owned by a person who has a 100% disability rating certified by the U.S. Department of Veterans Affairs are designated a special class of property and are excluded from property taxation.
  • Effective date / applicability:
    • The act becomes effective January 1, 2026.
    • The exemption applies to motor vehicles registered on or after January 1, 2026.

Who is affected

  • Primary beneficiaries: North Carolina residents who (1) own a motor vehicle and (2) have a 100% disability rating certified by the U.S. Department of Veterans Affairs. The statutory language ties the exemption to ownership and VA certification.
  • Local governments (counties/municipalities): potential reduction in ad valorem property tax revenues collected on motor vehicles.
  • Local tax and motor vehicle registration offices: administrative responsibility to verify VA certification and apply the exclusion at registration/assessment.

Implementation and administrative impacts

  • Tax assessors / county offices will need procedures to:
    • Verify veterans’ 100% VA disability certification (process, documentation, secure handling).
    • Apply the exclusion to qualifying vehicle records and remove exempted vehicles from the taxable property rolls.
  • Motor vehicle registration offices and local DMV partners may need system updates and staff training to capture exemption claims at registration and communicate with county tax offices.

Fiscal & policy considerations

  • Revenue impact: The bill reduces the local property tax base for motor vehicles owned by qualifying veterans. The magnitude of revenue loss depends on (a) the number of qualifying veterans who own vehicles and (b) vehicle valuations; no fiscal estimate is provided in the bill text.
  • Equity / targeting: The benefit is narrowly targeted to veterans with the highest (100%) VA disability rating; other veterans and surviving family members are not explicitly included.
  • Timing: Because the exemption is tied to registrations on or after January 1, 2026, vehicles registered before that date remain taxable unless otherwise addressed by implementing guidance.

Next steps / legislative status

  • At the time of this summary the bill has passed its first reading. Additional committee consideration, further readings, and final enactment are required before the effective date. If enacted on schedule, the statutory change would take effect for registrations beginning January 1, 2026.

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

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