Elderly or Disabled Exemptions FAQ

Income for this purpose refers to Adjusted Gross Income (AGI), as defined in Internal Revenue code section 62. This includes all income from work, retirement benefits, social security, rental or farm income, or investments. Some gift income and inheritance income may be excluded. Check with tax office personnel to be sure. Note: if you are married and living with your spouse, both of your incomes must be reported, irregardless of whether both spouses are listed owners of the property.

As long as you own your home, it does not matter whether you own the land on which it sits in order to qualify. If you own a mobile home, and are purchasing the land under owner-financing, even if you are responsible for the taxes under the contract, you are not considered the owner of the land for tax purposes until you have a deed to the land. In such a case, you may qualify for the exemption on the mobile home, but not on the land.

You must have met the age requirement and be the owner of record for the property on January 1st of the year for which the exemption is requested.

An otherwise qualifying owner does not lose the benefit of this exclusion because of a temporary absence from his or her premanant residence for reasons of health, or because of an extended absence while confined to a rest home or nursing home, so land as the residence is unoccupied or occupied by the owner's spouse or other dependent.

A person is totally and permanently disabled if the person has a physical or mental impairment that substantially precludes him or her from obtaining gainful employment and appears reasonably certain to continue, without substantial improvement throughout his or her life. Proof of disability must be provided and must be in the form of a certificate from a physician licensed to practice medicine in North Carolina or from a governmental agency authorized to determine qualification for disability benefits. After a disabled applicant has qualified for this classification, he or she shall not be required to furnish an additional certification unless the applicant’s disability is reduced to the extent that the applicant could no longer be certified for the taxation at reduced valuation.

Once you have qualified for the exemption, you will begin receiving a listing form in January of each year (if you do not already receive one). This must be signed and returned by the end of the listing period (end of January), certifying that you have not had any major change in income and should continue to receive the exemption. Failure to return the signed listing form will cause you not to receive the exemption and necessitates reapplying the next year to receive it again.