House Bill 950 would expand North Carolina’s elderly or disabled property tax homestead exclusion by changing who qualifies and how much of a home’s value can be excluded from property taxation. The bill raises the age threshold for elderly applicants from 65 to 70, removes the income eligibility limit entirely, and increases the exclusion from the greater of $25,000 or 50% of a residence’s appraised value to 100% of the residence’s appraised value. It also makes conforming changes to the related property tax homestead circuit breaker statute so that the same income-limit language is removed there as well.
In practical terms, the bill would substantially broaden property tax relief for qualifying elderly and disabled homeowners, potentially eliminating property taxes on a primary residence for those who meet the age or disability criteria. The changes would apply beginning with taxes imposed for taxable years starting on or after July 1, 2026, giving counties and the Department of Revenue time to adjust administration and revenue projections. The bill also preserves the rule that a homeowner receiving this exclusion may not receive other property tax relief for the same property.
HB950 would amend G.S. 105-277.1 and G.S. 105-277.1B, both of which govern North Carolina’s property tax relief for elderly or disabled homeowners. The bill would remove the income cap from eligibility, increase the age requirement for elderly applicants to 70, and expand the exclusion to cover 100% of the appraised value of a qualifying residence. Because the exclusion is a special class of property under the state constitution, the bill would significantly alter the scope of local property tax exemptions and reduce taxable property values for counties, cities, and other taxing units. The effective date is delayed until taxable years beginning on or after July 1, 2026.
Based on the bill text and available context, the measure appears strongly supportive of tax relief for elderly and disabled homeowners. There are no recorded committee transcripts or votes in the provided materials, so there is no documented opposition or amendment debate to gauge broader legislative sentiment. The sponsor’s proposal suggests a policy goal of expanding homeowner relief rather than narrowing it, and the bill was referred to Finance for consideration.
The main points of contention likely concern the fiscal and policy effects of expanding a property tax exemption to 100% of a home’s appraised value while eliminating the income test. That change would shift a larger share of local tax burdens away from qualifying homeowners and onto other taxpayers or reduce local revenues. Another likely issue is the increase in the age threshold from 65 to 70, which narrows access for some elderly homeowners even as the bill greatly expands the size of the benefit for those who qualify. No specific objections or supporters are documented in the provided committee or vote history.