The State of North Carolina legislation currently provides for three types of property tax relief for North Carolina permanent residents. If a permanent resident qualifies for more than one of the three property tax relief options described below, they must select one of the three for the current tax year. It is possible to change the relief option for up-coming tax years provided all eligibility requirements are met. Please review this information carefully and contact Tax Administration at (910) 678-7507 if you have any questions.
Property Tax Homestead Exclusion for Elderly or Disabled Persons
Applicant(s) must be 65 years of age, OR totally and permanently disabled
Income for the previous year must be $25,600 or below (includes income of both spouses if property is owned as tenants by the entirety).
Income for the purpose of this exclusion means ALL monies received from every source other than gifts or inheritances received from a spouse, lineal ancestor or lineal descendant, including social security, rents, alimony, gifts, etc.
Tax relief provided to qualifying applicants is the exclusion from taxation of $25,000 of the value, OR 50% of the value, of the applicant’s permanent legal residence, up to 1 acre of land, whichever is greater.
If you received this exclusion last year, you do not need to reapply UNLESS you have changed your permanent residence OR you no longer meet the above requirements for the exclusion. (Failure to notify the assessor that the property no longer qualifies for this exclusion will cause the property to be subject to discovery with penalties and interest pursuant to G.S. 105-312).
If you did not receive this exclusion last year, but are now eligible, you may obtain an application beginning January 2, 2009, from the assessor’s office by calling 910-678-7507, or clicking this link:
www.co.cumberland.nc.us/tax.asp
All applications and supporting documentation must be filed with the county assessor by June 1st.
NEW - Property Tax Homestead Circuit Breaker, Deferred Property Taxes
Applicant must be 65 years of age, OR totally and permanently disabled.
Must have owned and occupied the property as the owner’s permanent, legal residence for the preceding five calendar years.
Applicant must be a North Carolina resident.
Must submit a new application and income verification to the assessor every year by June 1st to qualify.
The total of all income for the previous year cannot exceed $38,400.
If the total income is $25,600 or less, property taxes will be limited to 4% of that income (balance of taxes will be deferred until a qualifying event occurs-see below).
If the total income is more than $25,600 and not more than $38,400, property taxes will be limited to 5% of that income (balance of taxes will be deferred until a qualifying event occurs-see below).
The deferred taxes are a lien on the property until paid in full.
The deferred taxes are for the last three years proceeding the current year of deferred taxes, plus accrued interest.
Interest will accrue on the deferred taxes from the date the taxes were originally due.
A disqualifying event that will trigger the deferred taxes becoming due include:
Death of the owner
Transfer of the property
Owner ceases using the property as the permanent residence
For multiple owners, all owners must apply and qualify (estate by entirety does not count as multiple owners.)
Property owners who qualify for both the Homestead Exclusion for property taxes AND the Homestead Circuit Breaker deferred property tax option may only elect one of these options for property tax relief for any given tax year.
NEW - Disabled Veterans Exclusion for Property Taxes
No age or income requirement
Must own and occupy the property as the permanent residence
Must be a North Carolina resident
As of January 1st, veterans of any branch of the U.S. armed forces qualify if they are:
A veteran who is HONORABLY DISCHARGED (not discharged honorably, a lesser status) and rated as totally and permanently disabled with the disability being service connected
The unmarried, surviving spouse of an HONORABLY DISCHARGED, totally and permanently disabled veteran, whose disability was service connected
A veteran who receives benefits for specially adapted housing under 38 U.S.C. 2101
The property tax exclusion for qualified applicants is the first $45,000 of value of the residence will be excluded from taxation.
A one-time application is required.
Applicants must submit ALL required supporting documentation to the Tax Administration office by June 1st of the year you are making application. Required documentation would include:
A copy of the applicant’s Honorable Discharge Certificate
Veteran’s disability certification claiming a total and permanent service connected disability, OR
Documentation that the applicant receives benefit for specially adapted housing under 38 U.S.C. 2101
Veterans who receive property tax relief under this exclusion may not receive property tax relief under the Homestead Exclusion or the Homestead Circuit Breaker Deferred tax relief options. Property owners can elect one property tax exclusion option only.
Applications will be available beginning January 2, 2009 by calling 910-678-7507 or from the following link:
www.co.cumberland.nc.us/tax.asp
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