Bill > H683

This bill expands the property tax homestead exclusion for disabled veterans in North Carolina by removing the previous limit of a $45,000 exclusion and instead excluding the entire appraised value of a primary residence owned by a qualifying disabled veteran from taxation. A qualifying owner includes a disabled veteran or their surviving spouse who has not remarried, and must be a North Carolina resident. To qualify, a veteran must have an honorable discharge and meet specific disability criteria, such as receiving specific VA benefits or being certified as having a service-connected, permanent, and total disability. The bill also introduces a mechanism to reimburse local governments for their lost tax revenue by creating a "hold harmless amount" calculation, which will be paid out by the Secretary of Revenue from existing tax collections. County tax collectors must notify the Secretary of Revenue of their total hold harmless amount by September 1 each year, and the Secretary will distribute the funds to counties and cities by December 31. The provisions of this bill will take effect for taxes imposed in taxable years beginning on or after July 1, 2026.

Government Affairs

https://www.ncleg.gov/BillLookUp/2025/H683