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Tax Collections/Tax Mapping
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THE CIRCUIT BREAKER HOMESTEAD
TAX DEFERMENT PROGRAM |
Resources |
Q: What is
the Circuit Breaker Homestead Tax
Deferment Program?
A. The
Circuit Breaker Tax Deferment program
limits the amount of taxes qualified
North Carolinians, who are age 65 and
over or totally and permanently
disabled, must pay on their permanent
residence (homestead). Taxes are limited
to a percentage of their income. Taxes
above that percentage are deferred until
there is a disqualifying event that
triggers the repayment of the deferred
taxes.
*Homeowners with incomes of $50,700 &
less; that are over age 65 or are
totally and permanently disabled should
consider the
ELDERLY OR DISABLED HOMESTEAD EXCLUSION.
The exclusion may provide more tax
relief than the Circuit Breaker Tax
Deferment Program. Homeowner’s cannot be
granted both types of property relief. |
Administrator:
Tax Phone:
(252) 794-5310
Mapping Phone:
(252) 794-5311
Fax:
(252) 794-5357
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Tax Limitations for 2012
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Income = $0 to $32,800*
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Taxes are limited to 4% of
annual income
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Income = $33,800 to $50,700
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Taxes are limited to 5% of
annual income
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Income = over $50,700
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Does not qualify
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Q: What are the qualifications
for the Circuit Breaker Tax Deferment
Program?
A: You may be qualified for the Circuit
Breaker Homestead Tax Deferment Program
if:
-YOU ARE a Bertie County Resident at
least 65 years of age on January 1st of
the tax year in which you wish to claim
the exemption; AND
-YOU AND YOUR SPOUSE'S
income did not exceed $50,700 for the
year prior to which an application is
made; AND --YOU HAVE owned and occupied you
current permanent legal residence for 5
or more years;
OR
-YOU ARE certified totally and
permanently disabled by a licensed
physician or governmental agency; AND
-YOU AND YOUR SPOUSE'S income did not
exceed $50,700 for the year prior to
which an application is made; AND
-YOU
HAVE owned and occupied you current
permanent legal residence for 5 or more
years;If the property is owned
by
MULTIPLE OWNERS (other than husband and
wife) every owner must meet the
qualifications above.
Q: How are deferred taxes
calculated and are they lien on my
property?
A. Deferred taxes are the amount of
taxes on one’s Homestead/Permanent
Residence over and above the limitation
(either 4% or 5% of one’s income)
granted by the program. Unlike some
other tax relief programs, deferred
taxes are a lien on the property. The
Tax Department keeps a record of the
deferred taxes until a disqualifying
event triggers the repayment of the
deferred taxes.
Q: What would trigger the
repayment of the deferred taxes?
A. A disqualifying event would be:
-Death of the owner.
-Transfer of the property.
-Owner ceases to use the
property as a permanent residence.
Q:
What happens if I apply and qualify for
the Circuit Breaker Deferred Tax Program
for one or more years and in the future
I no longer qualify or I fail to submit
the required annual application?
A. Until a disqualification event
occurs, the deferred taxes will not
become due. Since incomes can vary from
year to year it is possible that you may
qualify one year, but not the next, and
then re-qualify in a subsequent year.
Q: Do “ALL” deferred taxes have
to be repaid?
A. The last three years of deferred
taxes prior to a disqualifying event and
any deferred taxes for the year of and
subsequent to the disqualifying event
must be repaid.
Q: Does “INTEREST” also have to
be paid on deferred taxes when they
become due?
A. Yes, Interest does have to be repaid
on deferred taxes. The amount if
interest is calculated from the date the
taxes would have originally become due.
Q: What is considered “INCOME”
and how much can I make and still
qualify for the circuit Breaker Tax
Deferment Program?
A. Income is defined as all other moneys
received from every source other than
gifts or inheritances from family
members. Income does include money
received from social security,
disability, retirement and rental
income. For the year 2023, the income
limit is $50,700. This threshold is
adjusted annually for cost-of-living.
Q: What is considered part of my
Homestead/Permanent Residence?
A. It includes your dwelling, the
dwelling site (not to exceed 1 acre),
and related improvements such as a
garage, carport or storage building. The
dwelling may be a single- family
residence, a unit in a multi-family
complex, or a manufactured home. The tax
on additional land and buildings, not
part of the homestead/permanent
residence, is not subject to any
limitation.
Q: Do I have to apply in person?
A. For this exemption, the qualifying
homeowner may submit an
application by
mail, fax, or in person at the Tax
Department. Since this program is based
in your annual income you must file a
new application each year.
Q: How can I show that I am 100%
totally and permanently disabled?
A. You must furnish a certification that
you are totally and permanently disabled
from either a licensed physician
(Physician Certification of Disability)
or from a government agency such as the
Social Security Administration. The
agency must have the proper authority to
determine qualifications for disability
benefits. If you or your spouse is over
65 years old, you do not need to submit
a certification of disability.
Q: How do I provide proof of
income?
A. If you are required to file a Federal
Income Tax return you must provide a
copy of the first page of the return.
For non income tax filers, other proof
of income is required. (See
Application
for details) Proof of income must
reflect income for the year immediately
preceding the tax year for which an
application is made. (For example, if an
application is submitted for 2023,
income for 2022 must be reported.)
Q: When is the deadline to file
an application?
A. Applications are timely filed if
received by June 1st of the year for
which the exemption is applied.
Q: Do I need to reapply
annually?
A. Yes. An annual application is
required.
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