Disabled Homestead Exclusion

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Disabled Homestead Exclusion

The exclusion amount is the greater of $25,000 or 50% of the appraised value of the residence and excludes one acre of land or less. An owner who receives an exclusion under this section may not receive other property tax relief (NCGS 105-277.1(a))


Application

An application for the exclusion provided by 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 01st preceding the tax year for which the exclusion is claimed. When property is owned by two or more persons other than husband and wife and one or more of them qualifies for this exclusion, each owner must apply separately for his or her proportionate share of the exclusion. (NCGS 105-277.1(c))


Ownership by Spouses

A permanent residence owned and occupied by husband and wife is entitled to the full benefit of this exclusion notwithstanding that only one of them meets the age or disability requirements of this section. (NCGS 105-277.1(d))


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. 105-277.1C, 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, and the amount of the exclusion allowed to all the co-owners may not exceed 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 one or more of the co-owners qualify for the exclusion allowed under G.S. 105-277.1C, each co-owner who qualifies for the exclusion 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. (NCGS 105-277.1(e))


Temporary Absence by Qualified Owner

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. (NCGS 105-277.1(a1))


Removal of Exclusion Because of Sale or Death

If the sale of your residence occurs between January 01st and July 01st of the current year, then the exclusion will be removed for the current tax year. If the sale of your residence or death occurs after July 01st of the current year, then the exclusion will remain for the current tax year.


Requirements:

  1. Must be a North Carolina resident
  2. Disabled Applicants - Persons who are totally and permanently disabled may apply for this exclusion by
    1. entering the appropriate information on a form made available by the assessor under G.S. 105-282.1 and
    2. furnishing acceptable proof of their disability. The proof must be in the form of a certificate from a physician licensed to practice medicine in North Carolina or from a governmental agency authorized to determine qualification for disability benefits. After a disabled applicant has qualified for this classification, the applicant is not required to furnish an additional certificate unless the applicant’s disability is reduced to the extent that the applicant could no longer be certified for the taxation at reduced valuation.
  3. Own and occupy your permanent residence on or before January 01st
  4. The due date to submit Disabled Homestead Exclusion Application is June 01st
  5. The owner’s income for the preceding calendar year cannot exceed $31,900. Income is defined as all monies received from every source other than gifts or inheritances received from a spouse, lineal ancestor, or lineal descendant. For married applicants residing with their spouse, the income of both most be included, whether the property is in both names or only one name.
  6. Last year’s annual Income cannot exceed $31,900
    1. Types of Income
      • 401K and 457 Distributions
      • Annuities
      • Business Income
      • Capital Gains
      • Dividends
      • Farm Income
      • Gambling Income
      • Interest
      • IRA Distributions
      • Pensions
      • Rental Income
      • Social Security
      • Unemployment
      • VA Benefits
      • Wages
      • Workers Compensation


The due date to submit Disabled Homestead Exclusion Application is June 01st.


Important Dates to Remember:

  1. January 01st – The date that determines all Exclusion Requirements
  2. January 05th – Taxes due without interest
  3. January 06th – Taxes are delinquent, interest begins to apply
  4. June 01st – Disabled Exclusion application due date
  5. August – Tax notices are mailed
  6. September 01st – Taxes due through January 05th without interest


Craven County Tax Department
Personal Property Division | Exclusions and Exemptions
226 Pollock Street, New Bern, NC 28560 | PO Box 1128, New Bern, NC 28563-1128
Telephone (252) 636-6604 | Email tax@cravencountync.gov