North Carolina veterans get new tax relief
Elderly, disabled can get tax relief
By James Shea
Times-News Staff Writer
Published: Saturday, January 10, 2009 at 4:30 a.m.
Last Modified: Friday, January 9, 2009 at 8:31 p.m.
The elderly, disabled and disabled veterans who own property in Henderson County can now receive property tax relief if they meet certain income requirements.
Click to enlarge The state modified the tax law for 2009, creating programs that cut tax bills 50 percent for qualified applicants. Disabled veterans and elderly property owners are eligible, and the county assessor’s office is asking them to apply soon so they can select the best program.
In 2008, Henderson County had 1,018 property owners who qualified for the Elderly or Disabled Exclusion Program, through which property owners receive a 50 percent reduction in assessed value, or a flat reduction of $25,000, whichever is greater.
The county took $45.7 million off the tax rolls because of the program.
Only a permanent resident who is 65 years or older or permanently disabled qualifies. The income limits for the program were recently increased. To qualify in 2008, a person must have made less than $25,000. For 2009, the limit was raised to $25,600.
The 50 percent reduction only applies to a primary residence and up to one acre of property for the tax exclusion.
“It’s a good program for those who qualify,” Henderson County Assessor Stan Duncan said.
Disabled veterans or widows of disabled veterans also qualify for a second program. If residents were honorably discharged from the military and are permanently disabled, they might qualify for the Disabled Veterans Exclusion program. These property owners get a $45,000 reduction in assessed value on their property taxes.
Circuit Breaker
New this year is a program called the Circuit Breaker Property Tax Deferment. Duncan said legislatures in the mountains and the coast pushed for the program.
Under the program, property owners who earn less than $38,400 qualify for a flat property tax based on a percentage of their income.
Property owners who earn less than $25,600 get a property tax rate of 4 percent of all earned income in 2008. A property owner who earned between $25,600 and $38,400 pays a property tax of 5 percent of income.
Duncan stressed that the tax is a deferment. Normally, residents who earn $20,000 and own a $155,000 house in Hendersonville would pay $1,305 in property taxes. Using the 4 percent rule of the Circuit Breaker program, however, the residents would only have to pay $800 in taxes (4 percent of income), deferring the rest, which must be paid before the house is sold. A lien is placed on the property for the extra $505 in property tax owners owe.
Duncan said he does not know how many people in Henderson County will apply for the Circuit Breaker program. He assumed people who have high value homes with limited income are the ones who will take advantage.
“We believe if they qualify, most will opt for the elderly exclusion,” Duncan said, adding, “We can’t begin to predict on this. I think it will vary across the state.”
Duncan suggested residents contact the county assessor’s office to learn more. The application process for the program is more complicated this year, so residents should apply well before the June 1 deadline.
Duncan said the assessor’s office can present the information based on the 2008 tax rate, but it will not tell residents which program is best for them.
“I can’t be giving people tax advice,” Duncan said.
The Henderson County Assessor’s Office can be reached at 697-4870. If residents live in other North Carolina counties, they should contact their local assessor’s office to learn about the programs.
Saturday, January 10, 2009
North Carolina veterans get new tax relief
