Senate Bill 135 would increase the income eligibility limit for North Carolina’s elderly or disabled property tax homestead exclusion. Under current law, qualifying homeowners must have income at or below a set threshold to receive the exclusion; this bill raises that threshold from $25,000 to $48,000 for taxable years beginning on or after July 1, 2025. The bill also keeps the existing structure that allows the limit to be adjusted annually based on Social Security cost-of-living adjustments, with the Department of Revenue responsible for calculating and notifying county assessors of the updated amount each year.
In practical terms, the bill would make more low- and moderate-income elderly or disabled homeowners eligible for property tax relief, reducing their local property tax burden. The change would apply to taxes imposed for taxable years beginning on or after July 1, 2025, and would amend G.S. 105-277.1, the statute governing the homestead exclusion for elderly or disabled homeowners.
Impact
The bill amends North Carolina General Statute 105-277.1(a2) by increasing the income eligibility cap for the elderly or disabled property tax homestead exclusion and preserving the annual inflation adjustment mechanism tied to Social Security cost-of-living increases. This would expand eligibility for a state-authorized property tax benefit, affecting county tax administration, eligible homeowners, and local property tax revenues to the extent more taxpayers qualify for the exclusion.
Sentiment
The available record shows no committee transcript, vote tally, or recorded opposition, so there is no documented debate to gauge sentiment directly. Based on the bill’s purpose and sponsors, the measure appears to be framed as a targeted tax-relief expansion for elderly and disabled residents, which typically draws supportive sentiment from advocates of property tax relief and senior assistance.
Contention
No specific points of contention are documented in the provided materials. Potential areas of concern, if raised in future debate, would likely involve the fiscal impact on local governments from expanding eligibility, the size of the income threshold increase, and whether the new cap appropriately targets homeowners most in need of relief. However, no named legislators, committees, or stakeholders are recorded as opposing or supporting those issues in the supplied context.
Expands eligibility for pension and retirement income exclusion to taxpayers with incomes exceeding $150,000, and increases amount of exclusion that qualifying taxpayers may claim.