Property Tax Relief
North Carolina offers three targeted tax relief programs: our traditional Elderly/Disabled
Exclusion, an updated Disabled Veteran’s Exclusion, and a new program called the
Homestead Circuit Breaker.
Senior Citizens / Disabled
North Carolina excludes from property taxes a portion of the appraised value of
a permanent residence owned and occupied by North Carolina residents aged 65 or
older or totally and permanently disabled whose income does not exceed $28,100 annually.
The amount of the appraised value of the residence that may be excluded from taxation
is the greater of twenty five thousand dollars ($25,000) or fifty percent (50%)
of the appraised value of the residence. Income is defined as monies received from
every source including Social Security benefits, retirement payments, proceeds from
insurance policies, interest, dividends, etc. It does not include gifts or inheritances
from a spouse or immediate family member.
To apply for this exclusion, you may print
an application which you can complete and return to us. To apply for this
exclusion due to disability, you must attach a certificate which certifies that
you are totally and permanently disabled from a physician licensed as a medical
doctor in North Carolina or a governmental agency authorized to make such a determination.
The deadline for submitting applications is June 1. You will receive written notification
if the application is denied.
If you have previously received this exclusion, you do not need to apply again unless
you have changed your permanent residence. If you have received the exclusion, and
your income now exceeds $28,100, you must notify our office. If you received the
exclusion because you were totally and permanently disabled, and you are no longer
totally and permanently disabled, you must notify our office.
If the person receiving the exclusion has died, the person required by law to list
the property must notify our office. Failure to make any of the notices required
by law before June 1, will result in penalties and interest.
North Carolina excludes from property taxes $45,000 of the appraised value of a
permanent residence owned and occupied by an honorably discharged disabled veteran
or the unmarried surviving spouse of an honorably discharged disabled veteran. A
disabled Veteran is a Veteran who either (1) has 100% permanent total disability
that is service-connected or (2) receives benefits for specially adapted housing
under 38 U.S.C. 2101. Complete an Application for Property Tax Relief Form AV-9 for certification by the US Department of Veterans
Affairs for a veteran who has a 100% total permanent, service-connected disability.
Circuit Breaker Tax Deferment for Senior Citizens
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 2013 tax year is $28,100 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 ($28,100) but does not exceed 150% of the income eligibility limit, which
for the 2013 tax year is $42,150, the owner’s taxes will be limited to five percent
(5%) of the owner’s income.
However, the taxes over the limitation amount are deferred and remain a lien on
the property. The last three years of deferred taxes prior to a disqualifying event
will become due and payable, with interest, on the date of the disqualifying event.
Interest accrues on the deferred taxes as if they had been payable on the dates
on which they would have originally become due. Disqualifying events are death of
the owner, transfer of the property, and failure to use the property as the owner’s
permanent residence. Exceptions and special provisions apply. See G.S. 105-277.1B
for the full text of the statute.
An annual application is required for continued participation in the Circuit Break
Every property owner claiming exemption from property taxes must
establish that the property is entitled thereto. Any owner claiming exemption, with
the exception of the United States Government, The State of North Carolina, and
the counties and municipalities of the State, must file an application with the
Tax Assessor's Office. If the property for which the exemption is claimed is appraised
by the Department of Revenue, the application shall be filed with the Department.
Applications are made available in person or by mail from the Tax Assessor's Office.
The Department of Revenue or the Tax Assessor to whom the application is submitted
shall review the application for approval or denial.
Approved applications are filed and made available to all taxing units within Forsyth
County. The Tax Assessor maintains a tax scroll of all property that is granted
tax relief through exemption. For further information regarding exempt properties,
contact the Tax Assessor's Office at (336) 703-2300.