GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1999

H	1 

HOUSE BILL 1676

Short Title:  $30,000 Homestead Exemption.	(Public)

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Sponsors: Representatives Allred; McComas, Warner, Arnold, Berry, Cansler, Culp, Davis, Eddins, Gardner, Grady, Gulley, Hill, Justus, Morris, Nye, Preston, Rayfield, Russell, Sexton, Sherrill, Smith, Sossamon, Thompson, Wainwright, Warwick, Weiss, and West. 

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Referred to:  Finance.

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May 24, 2000

A BILL TO BE ENTITLED
AN ACT TO REDUCE PROPERTY TAXES ON HOMESTEAD PROPERTY, TO ALLOW MORE INDIVIDUALS TO QUALIFY FOR THE HOMESTEAD TAX REDUCTION, AND TO REIMBURSE LOCAL GOVERNMENTS FOR ONE-HALF OF THE REVENUE LOSS DUE TO THE HOMESTEAD TAX REDUCTION.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-277.1(a) reads as rewritten:
"(a)	Exclusion. – The following class of property is designated a special class of property under Section 2(2) of Article V of the North Carolina Constitution and must be assessed for taxation in accordance with this section. The first thirty thousand dollars ($30,000) in appraised value of a permanent residence owned and occupied by a qualifying owner is excluded from taxation. A qualifying owner is an owner who meets all of the following requirements as of January 1 preceding the taxable year for which the benefit is claimed:
(1)	Is at least 65 years of age or totally and permanently disabled.
(2)	Has an income for the preceding calendar year of not more than thirty thousand dollars ($30,000).
(3)	Is a North Carolina resident.
An otherwise qualifying owner does not lose the benefit of this exclusion because of a temporary absence from his or her permanent residence for reasons of health, or because of an extended absence while confined to a rest home or nursing home, so long as the residence is unoccupied or occupied by the owner's spouse or other dependent."
Section 2.  G.S. 105-309(f) reads as rewritten:
"(f)	The notice set out below must appear on each abstract or on an information sheet distributed with the abstract. The abstract or sheet must include the address and telephone number of the assessor below the notice.

‘PROPERTY TAX RELIEF FOR ELDERLY AND
                   PERMANENTLY DISABLED PERSONS.

North Carolina excludes from property taxes the first thirty thousand dollars ($30,000) in 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 thirty thousand dollars ($30,000). Income means the owner's adjusted gross income as determined for federal income tax purposes, plus all moneys received other than gifts or inheritances received from a spouse, lineal ancestor or lineal descendant.
If you received this exclusion in (assessor insert previous year), you do not need to apply again unless you have changed your permanent residence. If you received the exclusion in (assessor insert previous year) and your income in (assessor insert previous year) was above thirty thousand dollars ($30,000), you must notify the assessor. If you received the exclusion in (assessor insert previous year) because you were totally and permanently disabled and you are no longer totally and permanently disabled, you must notify the assessor. If the person receiving the exclusion in (assessor insert previous year) has died, the person required by law to list the property must notify the assessor. Failure to make any of the notices required by this paragraph before April 15 will result in penalties and interest.
If you did not receive the exclusion in (assessor insert previous year) but are now eligible, you may obtain a copy of an application from the assessor. It must be filed by April 15.'"
Section 3.  G.S. 105-277.1A reads as rewritten:
"§ 105-277.1A.  Homestead exclusion; reimbursement of localities for portion of tax lost.
(a)	On September 1 of each year, the tax collector of each county and the tax collector of each city must provide the Secretary of Revenue a list containing the name and address of each person who has qualified in that year for the property tax homestead exclusion provided in G.S. 105-277.1, and containing for each name the total amount of property exempted, the tax rate the property is subject to, and the product obtained by multiplying those two numbers by each other. Each list must be accompanied by an affidavit attesting to its accuracy and be on a form prescribed by the Secretary of Revenue.
	(b)	Repealed by Session Laws 1996, Second Extra Session, c. 18, s. 15.1(c).
(c)	The Secretary of Revenue may, for cause, grant an extension for the submission of a list required by this section.
(d)	Before May 31 of each year, the Secretary of Revenue must distribute to the county or city fifty percent (50%) of the total for the entire list provided pursuant to subsection (a) of this section of the product obtained by multiplying the tax exemption for each taxpayer times the applicable tax rate. 
	(e)	Any funds received by any county or city pursuant to this section because the county or city was collecting taxes for another unit of government or special district must be credited to the funds of that other unit or district in accordance with regulations issued by the Local Government Commission.
(f)	In order to pay for the reimbursement under this section and the cost to the Department of Revenue of administering the reimbursement, the Secretary of Revenue must draw from income tax collections received under Part 1 of Article 4 of this Chapter an amount equal to the reimbursement and the cost of administration."
Section 4.  Section 3 of this act becomes effective July 1, 2000.  The remainder of this act is effective for taxes imposed for taxable years beginning on or after July 1, 2000.  Notwithstanding the provisions of G.S. 105-277.1(c), an application for the benefit provided in this act for the 1999-2000 tax year is timely if it is filed on or before August 1, 2000.