WeVote
Log In

Bill

Bill

SB 660

Relating to the expenditure of state moneys based on the amount that is attributable to a student; prescribing an effective date.

2025 Regular Session Introduced by Daniel Bonham and 1 co-sponsor

Raises NC disabled-veteran homestead exclusion from $45,000 to $75,000, exempts a 100% disabled veteran's vehicle, and funds state reimbursements to localities for revenue loss.

In committee upon adjournment.
0
WeVote Research Nonpartisan
Bill Summary · SB 660

SB 660 — "Honoring Sacrifice: NC Veterans Relief Act" (Senate Bill 660, 2025)

Status: Passed 1st Reading (introduced Feb 20, 2025)
Primary sponsors: Senators Applewhite, Smith, Robinson

Purpose / intent

The bill provides property‑tax relief for North Carolina residents who are service‑connected, permanently and totally disabled veterans (and their surviving spouses). It increases the homestead exclusion amount for qualifying disabled‑veteran homeowners, creates a prequalification process to enable prospective homebuyers to verify eligibility in advance, exempts the primary motor vehicle of a 100% disabled veteran from property tax, and establishes a state reimbursement (“hold harmless”) mechanism to offset a portion of local revenue losses.

Key provisions

  • Homestead exclusion increase
    • For taxable years beginning on or after July 1, 2025, the portion of a qualifying permanent residence excluded from taxation is increased from $45,000 to $75,000 of appraised value (text replaces the $45,000 figure with $75,000).
  • Expanded definitions and eligibility
    • Continues to define a “disabled veteran” as one with service‑connected, permanent, and total disability per VA certification or benefits under 38 U.S.C. § 2101. Qualifying owner also includes an unmarried surviving spouse.
  • Prequalification
    • Disabled veterans (or surviving spouses) may apply for prequalification for the homestead exclusion even if they do not yet own the residence. Applications may be filed at any time on a Department‑approved form and must include VA certification or evidence of 38 U.S.C. § 2101 benefits. Assessors must make prequalification forms available and may accept prequalification notice in lieu of disability certification when processing an exclusion application.
  • Application timing
    • An exclusion application should be filed during the regular listing period but must be accepted up through June 1 preceding the tax year for which the exclusion is claimed.
  • Motor vehicle exemption
    • The bill directs an exclusion of the primary motor vehicle owned by a 100% disabled veteran from property tax (bill language reflects this objective; implementation details would be in statute or administrative guidance).
  • State reimbursement (hold harmless model)
    • “Hold harmless amount” = appraised value excluded × applicable local tax rate.
    • The State will reimburse counties (and the cities within them) for 50% of the hold‑harmless amounts (i.e., county and cities each receive 50% of their respective hold‑harmless amounts).
    • Counties must notify the Secretary of Revenue of their total hold harmless amount by Sept. 1 each year to be eligible; distributions are to occur by Dec. 31.
    • If a city or county’s hold‑harmless amount exceeds 1% of its most recent fiscal‑year general fund revenue, the Secretary must reimburse amounts above that threshold as well.
    • Reimbursement funds and related administrative costs are to be drawn from specified State tax collections (Part 2 of Article 4 of the Chapter cited in the bill).

Who is affected

  • Primary beneficiaries: North Carolina residents who are service‑connected, permanently and totally disabled veterans (and surviving spouses who have not remarried).
  • Local governments (counties and cities): will experience reduced property‑tax revenue from eligible exclusions but receive partial reimbursements from the State (50% of calculated hold‑harmless amounts, subject to procedural requirements).
  • State government: assumes partial fiscal responsibility for local revenue losses and will incur administrative costs for processing reimbursements and prequalification applications.

Timeline / implementation

  • Effective for taxes imposed for taxable years beginning on or after July 1, 2025 (per bill text for the increased exclusion amount).
  • Annual county notification to Secretary of Revenue by Sept. 1; State distributions by Dec. 31 for each taxable year.
  • Prequalification may be filed at any time once administrative forms are available.

Fiscal and administrative considerations

  • The bill reduces local property tax collections to the extent homeowners and vehicles qualify for the new or expanded exemptions.
  • The State offsets a portion of local revenue loss (50% of hold‑harmless amount) and covers related administrative costs from State tax collections; net fiscal impact to the State depends on uptake (number/value of qualifying properties and vehicles).
  • Implementation will require administrative processes at county assessor offices and the Department/Secretary of Revenue to accept prequalification applications, calculate hold‑harmless amounts, and distribute reimbursements.

Procedural status

  • Introduced Feb 20, 2025; passed first reading (per bill header). Further committee hearings and votes will determine final passage.

If you want, I can:
- Draft a one‑page explainer for county tax assessors on processing applications and prequalification notices, or
- Provide an estimated fiscal model using sample counts of qualifying veterans to illustrate potential State and local revenue impacts.

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

Sign in to ask a question.