A BILL TO BE ENTITLED
AN ACT to modify the disabled veteran property tax homestead exclusion to exclude from taxation the appraised value of a primary residence owned by a disabled veteran that is equal to the veteran's disability rating range.
The General Assembly of North Carolina enacts:
SECTION 1.  G.S. 105‑277.1C reads as rewritten:
"§ 105‑277.1C.  Disabled veteran property tax homestead exclusion.
(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. A qualifying owner who receives an exclusion under this section may not receive other property tax relief. For a disabled veteran, the amount excluded from taxation is equal to the amount listed in the table below based upon the veteran's disability rating:
Disability Rating					Exclusion Amount
70% or greater					$100,000
50% or greater, but less than 70%		$75,000
30% or greater, but less than 50%		$50,000
10% or greater, but less than 30%		$25,000
(a1)	Surviving Spouse Exclusion. – For the surviving spouse of a disabled veteran, the exclusion amount is equal to the greater of (i) the amount excluded under subsection (a) of this section as of the date of the disabled veteran's death or (ii) the first forty‑five thousand dollars ($45,000) of appraised value of the permanent residence, provided that the applicant establishes eligibility for such exclusion by providing certification from the United States Department of Veterans Affairs that, as of January 1 preceding the taxable year for which the exclusion is claimed, the veteran's death was the result of a service‑connected condition.
(b)	Definitions. – The following definitions apply in this section:
(1)	Disabled veteran. – A veteran of any branch of the Armed Forces of the United States whose character of service at separation was honorable or under honorable conditions and who has received a certification by the United States Department of Veterans Affairs indicating that, as of January 1 preceding the taxable year for which the exclusion allowed by this section is claimed, the veteran has been assigned a disability rating for a service‑connected condition.

	
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(e)	Other Multiple Owners. – This subsection applies to co‑owners who are not husband and wife. Each co‑owner of a permanent residence must apply separately for the exclusion allowed under this section.
When one or more co‑owners of a permanent residence qualify for the exclusion allowed under this section and none of the co‑owners qualifies for the exclusion allowed under G.S. 105‑277.1, each co‑owner is entitled to the full amount of the exclusion allowed under this section. The exclusion allowed to one co‑owner may not exceed the co‑owner's proportionate share of the valuation of the property.
When one or more co‑owners of a permanent residence qualify for the exclusion allowed under this section and one or more of the co‑owners qualify for the exclusion allowed under G.S. 105‑277.1, each co‑owner who qualifies for the exclusion allowed under this section is entitled to the full amount of the exclusion. The exclusion allowed to one co‑owner may not exceed the co‑owner's proportionate share of the valuation of the property, and the amount of the exclusion allowed to all the co‑owners may not exceed the greater of the exclusion allowed under this section and the exclusion allowed under G.S. 105‑277.1.
(f)	Application. – An application for the exclusion allowed under this section should be filed during the regular listing period, but may be filed and must be accepted at any time up to and through June 1 preceding the tax year for which the exclusion is claimed. An applicant for an exclusion under this section must establish eligibility for the exclusion by providing a copy of the veteran's disability certification."
SECTION 2.  This act is effective for taxes imposed for taxable years beginning on or after July 1, 2025.