A BILL TO BE ENTITLED
AN ACT to expand the homestead exemption and circuit breaker.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑277.1 reads as rewritten:
"§ 105‑277.1.  Elderly or disabled property tax homestead exclusion.
(a)	Exclusion. – A permanent residence owned and occupied by a qualifying owner is designated a special class of property under Article V, Sec. 2(2) of the North Carolina Constitution and is taxable in accordance with this section. The amount of the appraised value of the residence equal to the exclusion amount is excluded from taxation. An owner who receives an exclusion under this section may not receive other property tax relief. The exclusion amount is the greater of the following:
(1)	Twenty‑five thousand dollars ($25,000).
(2)	An amount equal to the following:
a.	If there has not been a general reappraisal pursuant to G.S. 105‑286 since the time the applicant became eligible for the exclusion allowed under this section, fifty percent (50%) of the appraised value of the residence.
b.	If there has been a general reappraisal pursuant to G.S. 105‑286 since the time the applicant became eligible for the exclusion allowed under this section, an amount equal to the sum of the following:
1.	The difference between the appraised value of the residence and the appraised value of the residence determined pursuant to G.S. 105‑286 as of January 1 of the year of eligibility, cumulatively adjusted according to the annual consumer price index until the year of the last general reappraisal conducted pursuant to G.S. 105‑286.
2.	Fifty percent (50%) of the appraised value of the residence determined pursuant to G.S. 105‑286 as of January 1 of the year of eligibility, cumulatively adjusted according to the annual consumer price index until the year of the last general reappraisal conducted pursuant to G.S. 105‑286.
(a1)	Ownership Requirements. – 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 the income eligibility limit.
(3)	Is a North Carolina resident.
(a2)	Temporary Absence. – 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.
(a3)	Income Eligibility Limit. – For the taxable year beginning on July 1, 2013, the income eligibility limit thirty thousand nine hundred dollars ($30,900), except that the limit is sixty‑one thousand eight hundred dollars ($61,800) for married applicants residing with their spouses. For taxable years beginning on or after July 1, 2014, the income eligibility limit is the amount for the preceding year, adjusted by the same percentage of this amount as the percentage of any cost‑of‑living adjustment made to the benefits under Titles II and XVI of the Social Security Act for the preceding calendar year, rounded to the nearest one hundred dollars ($100.00). On or before July 1 of each year, the Department of Revenue must determine the income eligibility amount to be in effect for the taxable year beginning the following July 1 and must notify the assessor of each county of the amount to be in effect for that taxable year.
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SECTION 2.  G.S. 105‑277.1B reads as rewritten:
"§ 105‑277.1B.  Property tax homestead circuit breaker.
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(c)	Income Eligibility Limit. – The income eligibility limit provided in G.S. 105‑277.1(a3) applies to this section.
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(e)	Multiple Owners. – A permanent residence owned and occupied by multiple qualifying owners is entitled to the full benefit of the property tax homestead circuit breaker notwithstanding that only one of them meets the length of occupancy and ownership requirements and the age or disability requirement of this section.
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SECTION 3.  This act is effective for taxes imposed for taxable years beginning on or after July 1, 2013.