December 4, 2008

“If you or someone you know owns his or her own home, is 65 years of age or totally and permanently disabled and/or a disabled veteran, you may qualify for property tax relief through recently passed legislation in North Carolina,” said incoming Catawba County Tax Administrator Mark Logan. “North Carolina General Statute 105-277.1 created three types of programs with varying qualifying income amounts and conditions. They are the Elderly and Disabled Exclusion, the Circuit Breaker Property Tax Deferment and the Disabled Veteran Exclusion.”

The Elderly and Disabled Exclusion excludes from property taxes the greater of a) $25,000 of appraised value of a permanent residence owned and occupied by a qualifying owner or b) 50% of the appraised value of a permanent residence owned and occupied by a qualifying owner. A qualifying owner must be a permanent resident of Catawba County and either age 65 or older or totally and permanently disabled, with an annual income not exceeding $25,600. A property owner who believes he or she is qualified must apply for this exclusion, but only needs to apply one time.

The Circuit Breaker Property Tax Deferment allows taxes billed each year to be limited to either 4% or 5% of the qualifying owner’s income. Taxes in excess of those limits would be deferred and would remain as a lien on the property until the death of the owner, the transfer of the property, or the owner ceases to use the property as a permanent residence. On the date of one of these disqualifying events, the three most current years of deferred taxes would become due and payable with interest.

A qualifying owner must be a permanent resident of Catawba County, either age 65 or older or totally and permanently disabled, who has owned and occupied his or her residence for at least five calendar years prior to their January 1 application and has an annual income not exceeding $38,400. A qualifying property owner must apply for this deferment every year.

The Disabled Veteran Exclusion excludes the first $45,000 of the appraised value of a permanent residence owned and occupied by a Catawba County resident who is an honorably discharged disabled veteran or the unmarried surviving spouse of an honorably discharged disabled veteran. There are no age or income requirements, but the disability must be 100% permanent and total and be connected to military service. A property owner who believes he or she is qualified must apply for this exclusion, but only needs to apply one time.

“Individuals wishing to make application for these programs have from January 1 until to June 1 of each year to apply with the Catawba County Tax Office,” Logan said.

The Catawba County Board of Commissioners is also continuing its request to the North Carolina General Assembly for an increase in the Homestead Exclusion, which provides property tax relief for senior citizens, by raising the qualifying annual income limit to $35,000. Bills were introduced in both the North Carolina House and Senate in the 2008 Short Session that would have brought about this increase but were not taken up for final consideration. The Board of Commissioners and County staff are optimistic they will receive full consideration in the legislature in 2009.

For more information about any of these programs, or to make application after January 1, 2009, you may contact the Catawba County Tax Office at 828-465-8426 or 465-8427. You may also apply online after January 1, 2009 at www.catawbacountync.gov or visit the Catawba County Tax Office on the first floor of the Government Center in Newton.