Qualifications
This
program (PDF) limits the amount of taxes one must pay annually on their permanent residence to a fixed percentage of their income. The amount of taxes above that percentage is deferred and does not have to be repaid until such time that a disqualifying event occurs. Upon disqualification the three most current years of deferred taxes become due and payable with interest.
Examples of disqualifying events:
- Death
- The property is no longer the taxpayer’s permanent residence
- Transfer of the property
- Exceeding income limit does not constitute a disqualifying event
- Deferred taxes are a lien on the property
- For multiple owners - all owners must apply and qualify (estate by entirety does not count as multiple owners)
- Income below $31,500 - taxes limited to 4% of income (requires annual application and income verification)
- Income between $31,500 and $47,250 - taxes limited to 5% of income (requires annual application and income verification)
- Income cannot exceed $47,250
- Interest accrues on deferred taxes from the date they were originally due
- Must be 65 years of age or totally and permanently disabled on January 1
- Must be a North Carolina resident
- Must have owned and occupied property as the owner’s permanent legal residence for the last 5 years
Identification
The Social Security number information is mandatory and will be used to establish the identification of the applicant, 42 U.S.C. Section 405(c)(2)(C)(i).