Tax Relief ProgramsNorth Carolina offers three property tax relief programs for the permanent residence of qualified homeowners.
Elderly or Disabled Exclusion:Applicants must be 65 years of age or totally and permanently disabled. In addition, the previous year's total income for both an applicant and spouse cannot exceed $27,100. For unmarried joint property owners, each owner must apply separately and benefit limitations may apply based on the percent of ownership.
This program excludes from taxation the first $25,000 or 50% (whichever is greater) of assessed value for the permanent residence.
Circuit Breaker Tax Deferment Program:Applicants must be 65 years of age or totally and permanently disabled. The previous year's total income for both an applicant and spouse cannot exceed $40,650. For unmarried joint property owners, each owner must apply and qualify separately. In addition, all owners must have owned and occupied the residence for the previous five years.
Under this program, taxes for each year are limited to a percentage of the owner's income. Taxes above the limitation amount are deferred, which means delayed until a future date. The last three years of deferred taxes become payable with interest if a disqualifying event occurs. Disqualifying events include death of the owner or transfer of the property where the owner's share is not passed to another qualifying owner, and failure to use the property as the owner's permanent residence. For an owner whose income does not exceed $27,100, the owner's taxes will be limited to 4% of their income. For an owner whose income exceeds $27,100 but does not exceed $40,650, the owner's taxes will be limited to 5% of their income. Participation in this program requires all owners to apply and qualify. You must file an application for the Circuit Breaker Tax Deferment Program each year.
Disabled Veteran Exclusion:Honorably discharged disabled veterans or their unmarried surviving spouse may be eligible for a reduction in property tax. There is no age or income limitation on this program.
This program excludes up to the first $45,000 of the appraised value of the permanent residence of an honorably discharged veteran who has a total and permanent disability that is service-connected or who receives benefits for specially adapted housing under 38 U.S.C. 2101. Unmarried joint property owners must apply separately and benefit limitations may apply based on the percent of ownership. If eligible, each owner may receive benefits under either the Elderly or Disabled Exclusion or the Disabled Veteran Exclusion. Once approved for the Disabled Veteran Exclusion, you do not need to reapply unless your disability or benefit status has changed.
To request an application for the Elderly or Disabled Exclusion, call Millie Barkley at 252.475.5953
To request an application for the Circuit Breaker Tax Deferment or Disabled Veteran Exclusion, call Nettie Midgett at 252.475.5939.
The deadline to submit an application to any of these programs is June 1. Late applications may be considered for good cause through the last day of the calendar year in which the tax is levied. Both a request to consider the late application, and the application itself must be heard and decided by the Dare County Board of Commissioners. Any application received after the calendar year ends cannot be approved for any reason or circumstance.