North Carolina legislation · 2025-2026 Session
North Carolina H1181: Property Tax Modifications.
Status: In committee, May 4, 2026
What the bill says
An act to modify the income eligibility limit for the elderly or disabled property tax homestead exclusion for married couples, to eliminate the deferred tax liability under the property tax homestead circuit breaker, to expand the property tax homestead circuit breaker by providing an alternate means to qualify based on area median income, to appropriate money to the north carolina association of county commissioners to assist counties with property reappraisals, and to impose an excise tax on the transfer of controlling interests in entities that hold an interest in rea…
From the introduced text:
A BILL TO BE ENTITLED AN ACT TO MODIFY THE INCOME ELIGIBILITY LIMIT FOR THE ELDERLY OR DISABLED PROPERTY TAX HOMESTEAD EXCLUSION FOR MARRIED COUPLES, TO ELIMINATE THE DEFERRED TAX LIABILITY UNDER THE PROPERTY TAX HOMESTEAD CIRCUIT BREAKER, TO EXPAND THE PROPERTY TAX HOMESTEAD CIRCUIT BREAKER BY PROVIDING AN ALTERNATE MEANS TO QUALIFY BASED ON AREA MEDIAN INCOME, TO APPROPRIATE MONEY TO THE NORTH CAROLINA ASSOCIATION OF COUNTY COMMISSIONERS TO ASSIST COUNTIES WITH PROPERTY REAPPRAISALS, AND TO IMPOSE AN EXCISE TAX ON THE TRANSFER OF CONTROLLING INTERESTS IN ENTITIES THAT HOLD AN INTEREST IN REAL PROPERTY. The General Assembly of North Carolina enacts: SECTION 1.(a) G.S. 105-277.1 is amended by adding a new subsection to read: "(a3) Spousal Income Limitation. - Married applicants residing with their spouses may qualify for the property tax homestead exclusion provided in this section if their income does not exceed one hundred fifteen percent (115%) of the income eligibility limit determined under subsection (a2) of this section." SECTION 1.(b) G.S. 105-277.1B reads as rewritten: "§ 105-277.1B. Property tax homestead circuit breaker. (a) Classification. - A permanent residence owned and occupied by a qualifying owner is designated a special class of property under Article V, Section 2(2) of the North Carolina Constitution and is taxable in accordance with this section. (b) Definitions. - The definitions provided …