North Carolina offers three Property Tax Relief programs for qualifying taxpayers:
· Elderly or Disabled Exclusion
· Disabled Veteran Exclusion
· Homestead Circuit Breaker
Property tax relief programs apply only to the permanent residence. The permanent residence includes the dwelling, the dwelling site (not to exceed one acre), and related improvements.
For qualification purposes, income is defined as all monies received from every source other than gifts or inheritances received from a spouse, lineal ancestor, or lineal descendant. For married applicants residing with their spouse, the income of both must be included, whether or not the property is in both names
Applications (Form AV-9) may be obtained by clicking the link, or by contacting the Onslow County Tax Office, Listings Division at 910-989-2201. The application deadline is June 1st each year.
The Certification of Disability (Form AV-9A) for the Elderly/Disabled or Homestead Circuit Breaker may also be obtained by clicking on the link or contacting the Listings Division.
The basic qualification criteria and information for each program are listed below:
Elderly or Disabled Exclusion
· Age 65 or older or Total and Permanent Disability
· Income must be $28,100 or less
· Must be a NC resident
· One time application required
· Deadline to submit application is June 1st
· Assessment reduction of $25,000 or 50% of the appraised value, whichever is greater
Disabled veteran Exclusion
· Permanent residence owned and occupied by an honorably discharged disabled veteran or the unmarried surviving spouse of an honorably discharged veteran
· Must be an NC resident
· Assessment reduction of $45,000
· No age requirement
· No income requirement
· One time application required
· Deadline to submit application is June 1st
· Must provide veteran’s disability certification from VA or other federal agency or present evidence of benefits received for specially adapted housing under 38 USC 2101
The Veterans Certification of Disability form (NCDVA Form 9) for the Disabled Veterans Property Tax Exclusion may be obtained by clicking here or contacting the Listings Division.
Homestead Circuit Breaker
· Age 65 or older or Total and Permanent Disability
· Must have owned and occupied property as the owner’s permanent legal residence for five (5) years
· Must be a NC resident
· Income can not exceed $42,150
· Tax Limitation is 4% of income is income is $28,100 or less
· Tax Limitation is 5% of income if income is between $28,101- $42,150
Income = $0 to $28,100 Taxes are limited to 4% of income.
Income = $28,101 to $42,150 Taxes are limited to 5% of income.
Income = Over $42,150 Does not qualify.
· Taxes over the limitation are deferred taxes
· Deferred taxes are a lien on the property
· Interest accrues on deferred taxes as if they had been payable on the original due dates
· The last three years of deferred taxes preceding the current tax year become due and payable upon a disqualifying event
· Disqualifying events are:
o Death of the owner
o Transfer of the Property
o Owner ceases to use property as a permanent residence
· There are certain exceptions to disqualifying event rules
o Death is not a disqualifying event if ownership passes to a co-owner or spouse
o Transfer is not a disqualifying event if title passes to a co-owner, or to a spouse as a result of divorce proceeding
· Requires annual application
· Deadline to submit application is June 1st