This program excludes the greater of the first $25,000 or 50% of the appraised value of the permanent residence of a qualifying owner.

A qualifying owner must either be at least 65 years of age or be totally and permanently disabled. The owner cannot have an income amount for the previous year that exceeds the income eligibility limit for the current year. You can find the current income limit on the Application for Tax Relief located on our Forms & Documents page. See G.S. 105-277.1 for the full text of the statute.

This program excludes up to the first $45,000 of the appraised value of the permanent residence of a disabled veteran.

A disabled veteran is defined as a veteran whose character of service at separation was honorable or under honorable conditions and who has a total and permanent service-connected disability or who received benefits for specially adapted housing under 38 U.S.C. 2101. There is no age or income limitation for this program. This benefit is also available to a surviving spouse (who has not remarried) of either (1) a disabled veteran as defined above, (2) a veteran who died as a result of a service-connected condition whose character of service at separation was honorable or under honorable conditions, or (3) a servicemember who died from a service-connected condition in the line of duty and not as a result of willful misconduct. See G.S. 105-277.1C for the full text of the statute.

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, 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 but does not exceed 150% of the income eligibility limit, the owner’s taxes will be limited to five percent (5%) of the owner’s income. You can find the current year income limits on the Application for Tax Relief located on our Forms & Documents page.

However, the taxes over the limitation amount are deferred and remain a lien on the property. The three most current 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. Exceptions and special provisions apply. See G.S. 105-277.1B for the full text of the statute.

Present-Use Value (PUV) is the value of land in its current use as agricultural land, horticultural land, or forestland, based solely on its ability to produce income and assuming an average level of management.

Property that qualifies for present-use value classification (defined in G.S. 105-277.3) is assessed at its present-use value rather than its market value.

Primary Statutes for this program are G.S. 105-277.2 through G.S. 105-277.7

•  G.S. 105-277.2 (Agricultural, horticultural, and forestland – Definitions)
•  G.S. 105-277.3 (Agricultural, horticultural, and forestland – Classifications)
•  G.S. 105-277.4 (Agricultural, horticultural and forestland – Application; appraisal at use value; notice and appeal; deferred taxes)
•  G.S. 105-277.5 (Agricultural, horticultural and forestland – Notice of change in use)
•  G.S. 105-277.6 (Agricultural, horticultural and forestland – Appraisal; computation of deferred tax)
•  G.S. 105-277.7 (Use-Value Advisory Board)

Present Use Value Program Guide located on the NC Department of Revenue site: http://www.dor.state.nc.us/publications/puv_guide.pdf.

Applications for these programs and others can be downloaded from the NC Department of Revenue at www.ncdor.gov/taxes-forms.