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HB 728

Shared Investment in Our Heroes Act.

2025-2026 Session Introduced by Amber Baker and 8 co-sponsors

The bill expands property tax relief for 100% disabled veterans by increasing the homestead exclusion to $75,000, exempts their primary vehicle, allows prequalification, and funds

Passed 1st Reading
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WeVote Research Nonpartisan
Bill Summary · HB 728

HB 728 — "Shared Investment in Our Heroes Act." (Session 2025) — Summary

Main purpose

To expand property‑tax relief for North Carolina residents who are 100% service‑connected, permanently and totally disabled veterans (and certain surviving spouses), by (1) increasing the disabled‑veteran homestead exclusion, (2) allowing prequalification for the homestead exclusion before purchase, (3) exempting the primary motor vehicle owned by a 100% disabled veteran from property tax, and (4) reimbursing local governments for a portion of resulting revenue loss (a “hold harmless” model).

Key provisions

  • Increase to homestead exclusion

    • Changes the Disabled Veteran Property Tax Homestead Exclusion so the first $75,000 of appraised value of a qualifying permanent residence is excluded from taxation (up from $45,000).
    • Effective for taxes imposed for taxable years beginning on or after July 1, 2025.

  • Motor vehicle exemption

    • Excludes the primary motor vehicle owned by a 100% service‑connected, permanently and totally disabled veteran from property taxation (text summary in bill synopsis; exact statutory placement truncated in provided text).

  • Prequalification

    • Allows a disabled veteran (or surviving spouse who has not remarried) to apply for prequalification of the homestead exclusion even if not yet the owner of a residence.
    • Prequalification requires submission of VA disability certification or evidence of benefits under 38 U.S.C. §2101; assessors must make application forms available and may accept a prequalification notice as evidence of eligibility at time of later property purchase.

  • Hold‑harmless reimbursement to local governments

    • Establishes a reimbursement formula that effectively reimburses counties and cities for 50% of the “hold harmless amount” (the property value excluded multiplied by the local tax rate).
    • Counties must notify the Secretary of Revenue of their total hold‑harmless amount by September 1 each year; the Secretary distributes reimbursements on or before December 31.
    • If a city’s or county’s hold‑harmless amount exceeds 1% of its most recent fiscal year general fund revenue, the Secretary will also reimburse amounts exceeding that 1% threshold.
    • The Secretary funds reimbursements and administrative costs by drawing from collections received under Part 2 of Article 4 of the tax code (as specified in the bill).

Who is affected

  • Primary beneficiaries: 100% service‑connected, permanently and totally disabled veterans who are North Carolina residents (and their surviving spouses who have not remarried).
  • Local governments (counties and cities): will experience reduced property tax receipts but receive partial state reimbursement under the hold‑harmless rules.
  • State Department of Revenue: administers prequalification, notification, and reimbursement processes and will allocate funds for reimbursements from specified State tax collections.

Implementation timeline & procedural notes

  • Effective date for tax changes: taxable years beginning on or after July 1, 2025.
  • Annual administrative deadlines in statute: county notification by Sept. 1; Secretary distribution by Dec. 31.
  • Applicants may file exclusion applications during regular listing period or up through June 1 preceding the tax year; prequalification may be filed anytime.

Potential impact (as provided in bill text)

  • Immediate increased tax relief for qualifying disabled veterans and eligible surviving spouses.
  • Reduced local property tax revenue partially offset by State reimbursements (the bill establishes the mechanism and funding source for reimbursements). The bill requires administrative actions by local tax collectors and the Department of Revenue to implement the program.

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

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