HB 118 North Carolina House · 2025-2026 Session

Disabled Veterans Tax Relief Bill.

HB 118 modifies North Carolina's property tax exemption for disabled veterans, replacing a flat $45,000 exclusion with a percentage-based system tied to the veteran's VA disability rating. It directly affects veterans with a 50% or higher service-connected disability rating (or surviving spouses under specific conditions), allowing them to exclude a portion of their home's appraised value from property taxes - equal to their disability percentage. For example, a veteran with a 70% disability rating would exclude 70% of their home's value from taxes. The bill takes effect for taxes due in 2025 and prohibits combining this relief with other property tax exemptions.

Bill status in committee 1 of 4 stages cleared

Introduction

Feb 2025

Committee Review

Floor Vote

Governor

Introduced Feb 13, 2025 Last action Sep 23, 2025

Maddy AI version diff · 3 comparisons

What changed between versions

Edition 2 → Edition 3 · 4 edits

MODERATE

This bill was updated to expand the disabled veteran property tax homestead exclusion from $45,000 to $61,000 and to include surviving spouses of disabled veterans as eligible recipients. The revision also establishes a new mechanism for the state to reimburse local governments for half of the lost tax revenue caused by this increase, effective for tax years starting July 1, 2026.

Scope change

The bill's scope expanded to include surviving spouses of disabled veterans in addition to disabled veterans, and it added a specific funding provision to offset the revenue loss for local governments.

ELIGIBILITY

Added 'surviving spouse of a disabled veteran who has not remarried' to the list of qualifying owners eligible for the tax exclusion.

FISCAL

Added a new subsection requiring the state to reimburse counties and cities for 50% of the lost tax revenue resulting from the increased exclusion amount.

TIMELINE

Changed the effective date of the tax increase and reimbursement program from July 1, 2025, to July 1, 2026.

REQUIREMENT

Added new administrative requirements for tax collectors to submit lists of qualifying homeowners to the Secretary of Revenue to calculate reimbursement amounts.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Sep 23, 2025

Committee

Re-ref Com On Rules, Calendar, and Operations of the House

lower

Sep 23, 2025

Lower · Passed

Reptd Fav Com Sub 2

lower

Mar 18, 2025

Committee

Re-ref Com On Finance

lower

Mar 18, 2025

Lower · Passed

Reptd Fav Com Substitute

lower

Feb 17, 2025

Committee

Ref to the Com on Homeland Security and Military and Veterans Affairs, if favorable, Finance, if favorable, Rules, Calendar, and Operations of the House

lower

Feb 13, 2025

Introduced

Filed

lower

3 primary · 60 co-sponsors