Elderly or Disabled Exemption (NCGS 105-277.1)
When applying for tax year 2018, applicants must be 65 years of age or totally and permanently disabled. In addition, the total household income for 2017 cannot exceed $29,600. For unmarried joint property owners, each owner must apply separately and benefit limitations may apply based on the percent of ownership.
This program excludes from taxation the first $25,000 or 50% (whichever is greater) of assessed value for the permanent residence. Exclusion means some of the value will not be considered when your tax bill is created. If you do not qualify for the program in future years, the excluded value from prior years does not become taxable.
Once approved for the Elderly or Disabled Exclusion, you do not need to reapply unless your permanent residence has changed, your income now exceeds the current annual income eligibility limit, or you are no longer totally and permanently disabled. If the person receiving the exclusion last year was deceased prior to January 1, the person required by law to list the property must notify the Cherokee County Tax Assessor’s Office. The surviving spouse or joint property owner is required to reapply for the exclusion if qualified. Failure to make any of these notices before June 1 will result in penalties, interest, and the possible loss of the exclusion.
Disabled Veteran Exemption (NCGS 105-277.1C)
Honorably discharged disabled veterans that are 100% service related or their unmarried surviving spouse may be eligible for a reduction in property tax. There is no age or income limitation on this program.
This program excludes up to the first $45,000 of the appraised value of the permanent residence of an honorably discharged veteran who has a total and permanent disability that is service-connected or who receives benefits for specially adapted housing under 38 U.S.C. 2101. Unmarried joint property owners must apply separately and benefit limitations may apply based on the percent of ownership. If eligible, each owner may receive benefits under either the Elderly or Disabled Exclusion or the Disabled Veteran Exclusion. Once approved for the Disabled Veteran Exclusion, you do not need to reapply unless your disability or benefit status has changed.
Circuit Breaker Tax Deferment Program (NCGS 105-277.1B)
Under this program, taxes for each year are limited to a percentage of the qualifying owner’s income. A qualifying owner must either be at least 65 years of age or be totally and permanently disabled. For an owner whose income amount for the previous year does not exceed the income eligibility limit for the current year, which for the 2016 tax year is $29,500, the owner’s taxes will be limited to four percent (4%) of the owner’s income. For an owner whose income exceeds the income eligibility limit ($29,500) but does not exceed 150% of the income eligibility limit, which for the 2016 tax year is $44,250, the owner’s taxes will be limited to five percent (5%) of the owner’s income. In addition, all owners must have owned and occupied the residence for the previous five years.
However, the taxes over the limitation amount are deferred and remain a lien on the property. The last three years of deferred taxes prior to a disqualifying event will become due and payable, with interest, on the date of the disqualifying event. Interest accrues on the deferred taxes as if they had been payable on the dates on which they would have originally become due.
Disqualifying events are death of the owner, transfer of the property, and failure to use the property as the owner’s permanent residence.
Multiple Owners: Each owner (other than husband and wife) must file a separate application. All owners must qualify and elect to defer taxes under this program or no benefit is allowed under this program. The Circuit Breaker Property Tax Deferment cannot be combined with either the Elderly or Disabled Exclusion or the Disabled Veteran Exclusion.
You must file a new application for this program every year!!
Builder’s Property Tax Exemption - (Application)