Property Tax Relief

 

Deferment Programs

Deferment is the postponement of a partial tax payment until such time that a disqualifying event occurs.  Upon disqualification, taxes which have been deferred will be collected for the current year, three prior years, and charged applicable interest.

Builders Inventory - Beginning in 2010, Builders can apply for a deferment of a portion of the property taxes due on completed but unsold homes. This legislation provides temporary tax relief for small builders during the current recession. The property taxes that are deferred will accrue interest, and become a lien on the property until they are paid. 

Circuit Breaker - Under this program, taxes for each year are limited to a percentage of the qualifying owner’s income. A qualifying owner must either be at least 65 years of age or be totally and permanently disabled. For an owner whose income amount for the previous year does not exceed the income eligibility limit for the current year, which for the 2014 tax year is $28,600 the owner’s taxes will be limited to four percent (4%) of the owner’s income. For an owner whose income exceeds the income eligibility limit ($28,600) but does not exceed 150% of the income eligibility limit, which for the 2014 tax year is $42,900, the owner’s taxes will be limited to five percent (5%) of the owner’s income.

Present Use - The North Carolina Legislature enacted a program entitled the "Land Use Program" which is designed to give tax relief to specific landowners for property that is being used for the production of agricultural, horticultural or forest products.  The land meeting the eligibility requirements is taxed on the present-use value instead of market value of the land.

Exclusions

Disabled Veteran - This program excludes up to the first $45,000 of the appraised value of the permanent residence of a disabled veteran.  A disabled veteran is defined as a veteran whose character of service separation was honorable or under honorable conditions and who has a total and permanent service-connected disability or who received benefits for specially adapted housing under 38 U.S.c.2101.  There is no age or income limitation for this program.   

Elderly or Disabled Exclusion - This program excludes from taxation the first $25,000 or 50% (whichever is greater) of assessed value for the permanent residence. Exclusion means some of the value will not be considered when your tax bill is created. If you do not qualify for the program in future years, the excluded value from prior years does not become taxable.  

 

Exempt Property

North Carolina General Statutes allow for certain types of property to be exempt from taxation if they meet the requirements specified by the statutes. Any owner claiming this relief, with the exception of the U.S. Government, the State of North Carolina, and the counties and municipalities of the State, must file an application for exemption.

The completed application must be filed with the Revenue Department during the regular listing period, which is from January 1 through January 31 each year. Late applications may be considered for good cause through the last day of the calendar year in which the tax is levied. Any application received after the calendar year ends cannot be approved for any reason or circumstance.

Examples of property exempt from taxation are:

  • Real and personal property used for religious purposes (NC General Statute 105-278.3)
  • Real and personal property used for educational purposes (NC General Statute 105-278.4)
  • Real and personal property of religious educational assemblies used for religious and educational purposes (NC General Statute 105-278.4)
  • Real and personal property used for charitable purposes (NC General Statute 105-278.6)
  • Real and personal property used for educational, scientific, literary or charitable purposes (NC General Statute 105-278.7)
  • Real and personal property used for charitable hospital purposes (NC General Statute 105-278.8).
  • Religious/Charitable Application