HB 1179 — Senior Property Tax Relief Modernization Act.

GENERAL ASSEMBLY OF NORTH CAROLINA H.B.SESSION 2025 H 1 HOUSE BILL 1179 Short Title:

1179Senior Apr 30, 2026 SESSION 2025 HOUSE PRINCIPAL CLERK H D HOUSE BILL DRH10607-NIfa-189 Short Title:Senior Property Tax Relief Modernization Act.

RepresentativeRepresentatives Rubin.Rubin, Ager, Cervania, and Carney (Primary Sponsors).

For a complete list of sponsors, refer to the North Carolina General Assembly web site.

Rules, Calendar, and Operations of the House May 4, 2026 A BILL TO BE ENTITLED AN ACT TO MODIFY THE ELDERLY OR DISABLED PROPERTY TAX HOMESTEAD EXCLUSION, TO EXPAND THE PROPERTYTAX HOMESTEAD CIRCUIT BREAKER AND TO REIMBURSE LOCAL GOVERNMENTS FOR THEIR RESULTING REVENUE LOSS, AND TO PROVIDE GRANT FUNDING TO THE NORTH CAROLINA ASSOCIATION OF COUNTY COMMISSIONERS TO SUPPORT MORE FREQUENT PROPERTY TAX REAPPRAISALS.

Whereas, propertytaxes fundessentiallocal services, includingincludingpublicschools, publicschools,publicpublic safety, and infrastructure;

and Whereas, rapidlyrapidlyrisinghomevalues risinghaveincreasedpropertytax homevalueshaveincreasedpropertytaxburdens,burdens, particularly for seniors and disabled homeowners living on fixed or limited incomes;

The exclusion amount is thegreateroftwentythegreateroftwentyfive five thousand dollars($25,000)orfiftydollars($25,000)orfiftypercent percent (50%) oftheappraisedvalue of the residence.

An owner who receives an exclusion under this section may not receive other property tax relief.Qualifying owners (i) with an income at or below fifty-five percent (55%) of State median income shall receive the full exclusion amount of propertypropertytax tax relief provided under *H1179-v-1* General Assembly Of North Carolina Session 2025 this section, (ii) with an income between fifty-five percent (55%) and eighty percent (80%) of *DRH10607-NIfa-189* General Assembly Of North Carolina Session 2025 State median income, the exclusion begins at one hundred percent (100%) of the exclusion amount of propertypropertytax tax relief provided under this section, and is reduced by three and thirty-three hundredths percent (3.33%) for every one percent (1%) of income above the fifty-five percent (55%) threshold, and (iii) with an income at or above eighty percent (80%) of State median income, no property tax relief is allowed under this section.

… (a2) IncomeEligibilityIncomeEligibilityLimit. Limit.– Forthe taxable yearbeginningonJuly 1, 2008, theincome eligibility limit is twenty-five thousand dollars ($25,000).

– Forthe taxable yearbeginningonJuly1, 2008, theincome eligibilitylimit is twenty-five thousand dollars ($25,000).

Page 2 DRH10607-NIfa-189House Bill 1179-First Edition General Assembly Of North Carolina Session 2025 (b) Definitions.

For taxable years beginning on or after JulyJuly1, 1, 2009, the income eligibilityeligibilitylimit 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).

– A permanent residence owned and occupied bybyhusband husband and wife 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.

When Subject to subsection (e1) of this section, when a permanent residenceis owned and occupiedbytwoormorepersonsotherthanhusbandandwife,occupiedbytwoormorepersonsotherthanhusband andwife, no the benefit of the propertypropertytax tax homestead circuit breaker is (i) allowed unless all of the owners qualify and elect to defer taxes under this section.to each qualifying owner in the amount equal to that owner's proportional ownership interest in the property and (ii) not allowed to any nonqualifying owner.

– Notwithstanding any provision of this section to the contrary, a permanent residence owned and occupied by a resident senior is entitled to the full property tax relief provided by this section notwithstanding that the resident senior has a proportional ownership interest in the property, provided that (i) no other non-spouse owner permanently resides in the property with the resident senior and (ii) notice is provided to all other co-owners of the property of the resident senior's election to defer under this subsection and no DRH10607-NIfa-189House Bill 1179-First Edition Page 3 General Assembly Of North Carolina Session 2025 co-ownerobjectsthereto.

Ifanyco-ownerobjects totheresidentseniorreceivingthefullpropertytotheresidentseniorreceivingthefull property tax relief provided by this subsection, the proportional relief under subsection (e) of this section shall apply to the primary residence.

– A mortgagee or trustee that elects to pay any tax deferred by theownerofaresidencesubjecttoamortgageordeedoftrustdoesnot acquirearighttoforeclose Page 4 DRH10607-NIfa-189House Bill 1179-First Edition General Assembly Of North Carolina Session 2025 as a result of the election.

A countycountythat that fails to notifynotifythe theSecretaryof Secretary of Revenue of its total hold harmless amount by the due date is barred from receiving a reimbursement under this subsection for that taxable year.

Any funds received by a county or city 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 bybythe the Local Government Commission.

In awarding grants under this section, the Association shall prioritize awarding grants to local governments operating on a reappraisal cycle of more thanfouryears.Forpurposesofthissection,"localthanfour years.Forpurposesofthissection,"local governments"meanscounties,cities,ortowns conducting reappraisals of property under Subchapter II of Chapter 105 of the General Statutes as of the effective date of this section.

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