Bill > S109

This bill modifies the property tax homestead exclusion for disabled veterans in North Carolina by expanding the tax exemption in two key ways. First, it increases the current $45,000 property value exclusion to now also include any additional appraised value resulting from housing adaptations funded by the U.S. Department of Veterans Affairs for service-connected disabilities. Second, the bill introduces a new prequalification process that allows disabled veterans to determine their potential property tax relief before actually purchasing a home, which aims to help veterans and lenders better understand tax benefits in advance. Under the new provision, veterans can apply for prequalification at any time by submitting an approved form to the county assessor, who must then notify the applicant of their eligibility within 30 days. Once a veteran purchases a permanent residence, they must still formally apply for the property tax relief as required. The changes will become effective for taxes imposed in taxable years beginning on or after July 1, 2025, providing disabled veterans with more comprehensive property tax relief and greater planning certainty when purchasing a home.

https://www.ncleg.gov/BillLookUp/2025/S109