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 owner whose income amount for the previous year does not exceed the income eligibilty limit for the current year, which for 2019 tax year is $30,200, the owner's taxes will be limited to four percent (4%) of the owner's income. For an owner whose income exceeds the income eligibilty limit ($30,200) but does not exceed 150% of the income eligibility limit, which for 2018 tax year is $45,300, the owner's taxes will be limited to five percent (5%) fo the owner's income.
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 ahve originally become due. Disqualifying events are death of the owner, transfer of property, the failure to use the property as the owner's permanent residence, and not applying for this deferment annually. Exceptions and special provisions apply. See G.S. 105-277.1B for the full text of the statue.
YOU MUST FILE A NEW APPLICATION FOR THIS PROGRAM EVERY YEAR!!!!
If there are multiple owners, each owner must file a seperate 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.