summary
Introduced
04/02/2025
04/02/2025
In Committee
04/03/2025
04/03/2025
Crossed Over
Passed
Dead
Introduced Session
2025-2026 Session
Bill Summary
AN ACT TO GRADUALLY INCREASE THE EXEMPTION AMOUNT UNDER THE DISABLED VETERAN PROPERTY TAX HOMESTEAD EXCLUSION, TO ALLOW DISABLED VETERANS TO PREQUALIFY FOR THE DISABLED VETERAN PROPERTY TAX HOMESTEAD EXCLUSION, TO EXCLUDE THE PRIMARY MOTOR VEHICLE OWNED BY A ONE HUNDRED PERCENT DISABLED VETERAN FROM THE PROPERTY TAX, AND TO REIMBURSE LOCAL GOVERNMENTS FOR A PERCENTAGE OF THEIR RESULTING REVENUE LOSS. Whereas, North Carolina strives to be the most veteran-friendly state in the nation; and Whereas, North Carolina recognizes the sacrifices of its veterans who have become 100% permanently and totally disabled due to service-connected conditions; and Whereas, homeownership and reliable transportation are critical to the well-being of disabled veterans, this act seeks to provide immediate financial relief through property tax exemptions; and Whereas, to ensure local governments remain financially stable, this act establishes a hold harmless model to reimburse local governments up to 50% of revenue losses resulting from the implementation of this act, ensuring a shared investment between the State and local governments in honoring our disabled veterans; Now, therefore,
AI Summary
This bill aims to provide significant tax relief and economic support for disabled veterans in North Carolina through multiple provisions. First, it gradually increases the property tax homestead exclusion for disabled veterans, raising the excluded appraised value from $45,000 to $75,000 in 2025, then to $125,000 in 2026, and ultimately to a maximum of $500,000 or 100% of the property value in 2027. The bill also introduces a prequalification process that allows disabled veterans to establish their eligibility for the property tax exemption in advance of purchasing a home. Additionally, the legislation exempts the primary motor vehicle owned by a 100% disabled veteran from property tax, provided it is not used primarily for business purposes. To ensure local governments are not financially disadvantaged by these tax exemptions, the bill establishes a "hold harmless" reimbursement mechanism where counties and cities will be compensated for up to 50% of their revenue losses. Furthermore, the bill creates a $10 million Veterans' Economic Development Incentive Grant Program to support affordable housing, infrastructure improvements, and employment programs for veterans, with grants of up to $100,000 available to eligible nonprofit organizations and local governments. The Department of Revenue will be required to provide annual reports tracking the financial impact and benefits of these veteran-focused initiatives.
Committee Categories
Government Affairs
Sponsors (9)
Frances Jackson (D)*,
Amber Baker (D),
Maria Cervania (D),
Mike Colvin (D),
Aisha Dew (D),
Zack Hawkins (D),
Nasif Majeed (D),
Garland Pierce (D),
Rodney Pierce (D),
Last Action
Ref To Com On Rules, Calendar, and Operations of the House (on 04/03/2025)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.ncleg.gov/BillLookUp/2025/H728 |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H728v1.pdf |
| BillText | https://www.ncleg.gov/Sessions/2025/Bills/House/PDF/H728v0.pdf |
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