Bill > S159

This bill creates a new property tax relief program specifically for elderly North Carolina residents aged 65 or older, called the "elderly property tax appreciation exclusion." Under this program, qualifying homeowners can defer property taxes on the increase in their home's appraised value above its original "qualifying value" (the home's appraised value when they first become eligible). To qualify, a person must be a North Carolina resident, have owned and occupied their permanent residence for at least five consecutive years, and be at least 65 years old during the calendar year. The program allows homeowners to essentially freeze their property's taxable value at its original assessment, with deferred taxes becoming a lien on the property. If a homeowner transfers the property, dies, or stops using it as a permanent residence, the deferred taxes for the most recent three fiscal years would become due. The bill includes provisions to protect homeowners, such as allowing temporary absences for health reasons and ensuring that transfers to spouses or co-owners do not trigger tax repayment. The new tax relief program will become effective for taxes imposed starting July 1, 2026, providing elderly homeowners with a mechanism to manage increasing property values and potential tax burdens.

https://www.ncleg.gov/BillLookUp/2025/S159