​​​​​​​​​​​​​​​​​​​​​Elderly / Exemptions

North Carolina excludes from property taxes the first $45,000 of assessed value for specific real property or manufactured home which is occupied as a permanent residence by a qualifying owner. 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 are no age or income requirements for the Disabled Veterans Homestead Exclusion. Applicants for this exclusion must meet the following requirements:

• Be an honorably discharged veteran who has a 100% total and permanent disability that is service-connected or be the unmarried surviving spouse of a qualifying veteran.
• Be certified by the U. S. Department of Veterans Affairs of the permanent total disability that is service-connected.
• Be a qualifying veteran with specially adapted housing per 38 U.S.C. 101.

Surviving Spouse

This program is available instead of the Homestead Exclusion for elderly or totally and permanently disabled homeowners whose income does not exceed 150% of the income eligibility limit* for the Homestead Exclusion.

As of January 1st of the year for which the deferral is claimed, the applicant must:

• Meet the requirements as stated in the Homestead Exclusion for age or disability.
• Must have owned and occupied the property as the owner's permanent legal residence for five (5) years.
• Must be a North Carolina resident.
• For married applicants living with their spouse, include the income from both spouses, even though the property is not in both names.

• All owners of the property must apply and elect to defer the applicable portion of their taxes.
• A new application is required annually.

A "Brownfields Site" is an abandoned, idled, or underused property where the threat of environmental contamination has hindered its redevelopment. Common examples are auto salvage yards and service stations contaminated by petroleum products, and laundry sites contaminated by the improper disposal of dry-cleaning solvents.

As an incentive for cleaning up and/or rehabilitating these sites, North Carolina enacted a provision under General Statute 105 to exclude a portion of the appraised value from ad valorem taxation. This exclusion is for properties that are under an active, filed "Brownfields Agreement" with the NC Department of Environment and Natural Resources. The agreement must also be filed with the Register of Deeds within the respective counties where the properties reside. The Brownfields Agreement specifies what contaminants are on the property, what structures – improvements - can be built, and any necessary actions to rehabilitate the property for the intended use. Improvements under this agreement must be 100% complete as of January 1st of the year in which an owner is filing an application for exclusion. If the owner files a timely Brownfields exclusion application, with a copy of their Brownfields Agreement, the owner will receive an exclusion of assessed value on a sliding scale for 5 years, beginning with the year in which the application is made.

Such exclusions are not retroactive. When a property has been approved for the exclusion, the exclusion remains in effect on the sliding scale for 5 years, even if ownership changes. Once a Brownfield's exclusion has been applied to an improvement on the property, it cannot be excluded again following the expiration of the original agreement.

NC General Statute - Brownfields Exclusion

§ 105 277.13. Taxation of improvements on brownfields.

1. Qualifying improvements on Brownfields properties are designated a special class of property under Article V, Sec. 2(2) of the North Carolina Constitution and shall be appraised, assessed, and taxed in accordance with this section. An owner of the land is entitled to the partial exclusion provided by this section for the first five taxable years beginning after the completion of qualifying improvements made after the later of July 1, 2000, or the date of the Brownfields Agreement. After the property has qualified for the exclusion provided by this section, the assessor for the county in which the property is located shall annually appraise the improvements made to the property during the period of time that the owner is entitled to the exclusion.
2. For the purposes of this section, the terms "qualifying improvements on Brownfields properties" and "qualifying improvements" mean improvements made to real property that is subject to a Brownfields Agreement entered into by the Department of Environmental Quality and the owner pursuant to G.S. 130A-310.32.
3. The following table establishes the percentage of the appraised value of the qualified improvements that is excluded based on the taxable year:
   
   Year 1 - 90%
   Year 2 - 75%
   Year 3 - 50%
   Year 4 - 30%
   Year 5 - 10%.
   

Property owners who have received the Brownfields Agreements with the NC Department of Environment and Natural Resources, and have completed improvements by January 1, 2021, can file for the exclusion only during the listing period between January 1st and 31st of the effective year: BROWNFIELDS PROPERTY APPLICATION

Types of Real Property that could possible qualify as being exempt:

• Religious
• Educational
• Charitable
• Literary
• Scientific
• For Historic Deferment, Contact the Charlotte Mecklenburg Historic Landmarks Commission.

Exempt Real Property Defined:
G.S. 105-278.3(a) Buildings, the land they actually occupy, and additional adjacent land REASONABLY necessary for the convenient use of any such building shall be exempted from taxation if wholly owned by a qualifying agency.

Property Use Guideline:
Property must be wholly and exclusively used for a religious, charitable, educational or scientific purpose.

*Religious Property Exemption Guidelines:
G.S. 105- 278.3

1. Property must have a religious purpose that pertains to practicing, teaching, and setting forth a religion. (Worship)
2. Religious Ownership must be one of the following agencies:
   A congregation, parish, mission, or similar local unit of church or religious body. A conference, association, presbytery, diocese, district, synod or similar unit comprising local units of a church or religious body.
3. Exemptions may be granted for residences of clergy, rabbis, priests or nuns assigned to or serving a qualifying owner.
4. Exemptions may be granted for residences who provide guardian, janitorial, and custodial services for such a property.
5. Parking for the religious organization can be granted exemption.

*Charitable Property Exemption Guidelines:
G.S. 105-278.6

1. Property must have a charitable purpose that has humane and philanthropic objectives. It is an activity that benefits humanity or a significant rather than limited segment of the community without expectation of pecuniary profit or reward. The humane treatment of animals is also a charitable purpose.
2. Charitable Ownership must be one of the following agencies:
   YMCA, or similar organization, home for the aged, sick or infirm, an orphanage or similar home, SPCA, reformatory or correctional institution, monastery, convent, or nunnery, a nonprofit life-saving, first aid or rescue squad organization, a nonprofit corporation providing housing for individuals or families with low income. (Charlotte-Mecklenburg Housing Authority - G.S. 105-278.6(e))

*Educational, Scientific, and Literary Property Exemption Guidelines:
G.S. 105-278.7

1. Property must have an Educational Purpose. An educational purpose is one that has as its objective the education or instruction of human beings: it comprehends the transmission of information and the training or development of the knowledge or skills of individual persons.
2. Property must have a scientific purpose. A scientific purpose is one that yields knowledge systematically through research, experimentation or other work done in one or more of the natural sciences.
3. Property must have a literary purpose. A literary purpose is one that pertains to letters or literature (including drama), especially writings, publishing, and the study of literature.
4. Educational, Scientific, or Literary Ownership must be one of the following: charitable, historical, scientific, or literary association or institution. A veterans' organization or association. A benevolent association or institution or a nonprofit community or neighborhood organization.

Applications are available for download prior to January 31st - Exemption-Exclusion Application - or from the office. Since the application period has expired, please call the office, as filings would be untimely. Telephone inquiries can be directed to 980-314-4226 (4CAO). Completed applications and other correspondence can be returned to the address shown below:

Mailing Address
Mecklenburg County Exemptions
P.O. Box 31127
Charlotte, NC 28231

Properties must meet all following qualifications:
1) Ownership
2) Use
3) Application

*If your property obtains an exempt status and leases the property to the United states of America, the State of North Carolina, Mecklenburg County, the City of Charlotte or any townships located in Mecklenburg County a "notice to lessees of exempted real property Mecklenburg County" form must be filed indicating the annual rent of the property.

G.S. 105-285(d)
If your organization sells an exempt property prior to July 1st of any year to a taxable entity, local taxes will be applicable for that entire tax year.

Commercial agriculture, horticulture, and forest tracts in Mecklenburg County have been declining in the face of population growth and development. Fields and woodlands have been displaced by new residential neighborhoods, retail establishments, and office complexes. As a result, the market value of the remaining properties have increased. The good news is that you, as a commercial producer of agricultural, horticultural or forest products, may be eligible for deferral of a portion of your local property taxes. North Carolina allows eligible producers to apply for tax assessment on the basis of present use, rather than full market value. This difference in taxes can be deferred (i.e., postponed) until such time as the property is no longer employed in commercial agricultural, horticultural or forest production.

How do you know if your property is eligible? If you can answer yes to the following questions, you may call the Mecklenburg County Real Property Appraisal Division at 980-314-4226 (4CAO) to discuss further.

You could qualify for an agriculture tax deferment if you:

1. Held title to your property for the past three years,
2. Have at least 10 acres in commercial agricultural production which can not include a home or excess woodland,
3. Have filed a Schedule 1040F with the IRS declaring an income of $1,000 for a 10 acre tract or $65 an acre for each acre over ten acres for the last three years, whichever is greater.

You could qualify for a horticulture tax deferment if you:

1. Held title to your property for the past three years,
2. Have at least 5 acres in commercial horticultural production which cannot include a home or excess woodland,
3. Have filed an income of $1,000 for a 5 acre tract and $65 an acre for each acre over five acres for the last three years.

You could qualify for a forest tax deferment if you:

1. Held title to your property for the past four years,
2. Have at least 20 acres in commercial timber production which cannot include a home or open fields,
3. Have an active forest management plan which specifies that species of your commercial timber, the growth, harvest, infestation spraying, harvest time-frames of your species, replanting expectations, any thinning needed, and any other care needed for the property maintenance of your commercial timber. This plan must be followed in order to confirm your intentions of commercial timber production.

Once you are granted a Present Use Valuation for your property as a qualifying owner, you can defer property taxes annually. Applications must be filed between January 1st and January 31st of the effective tax year. The value of the qualifying property is assessed as follows: $390 an acre for commercial agricultural land, $1,120 an acre for commercial horticultural land, and $280 an acre for commercial timber land.

At such time as the property ceases to qualify, deferred taxes for the current year and three prior years, plus applicable interest, become due and payable. Owners are required to notify the Assessor’s Office when such disqualification occurs to avoid possible penalties.

These programs are for individuals actively engaged in commercial production for an extended period of time. For example, an owner whose property was in commercial production for 20 years before disqualification would be liable for deferred taxes and interest for the current and three previous years. However, there would be no recapture of the other sixteen years of deferred taxes. This allows producers to continue in operation without the burden of property values inflated by development.

Procedures to qualify and apply for tax deferment on a historical real estate property:

1. Submit an online request to the Charlotte Mecklenburg Historic Landmarks Commission or call the office at 704-376-9115 or make a request by mailing the Application for Historic Deferment to the address below:

The Charlotte Mecklenburg
Historic Landmarks Commission
Jack W. L. Thomson, Executive Director
2100 Randolph Rd.
Charlotte, NC 28207

2. A representative will schedule a site visit to view the property to determine if the interior, exterior, land, and/or buildings on the parcel qualify as being historic by the guidelines used by the Charlotte Mecklenburg Historic Landmarks Commission.

3. Once the property has been viewed, a representative will contact the Mecklenburg County Assessor – Real Estate Division to get an estimate of how the historic classification on the particular property will effect the tax base if the historic classification is granted by the Historical Society.

4. The representative will present the request for historical classification, all findings regarding what elements of the property qualify as historic, and the tax base effect caused by classifying the property historic to the City Council (if the property is in the City limits) or the County Commissioners (if the property is in the county limits only).

5. If the City Council of Cornelius, Davidson, Huntersville, Matthews, Mint Hill, Pineville, and Charlotte or the Mecklenburg County Commissioners grant the historical designation, they will draw up a historical ordinance for the property which will be filed with the Register of Deeds Department.

6. The elements listed as qualifying for historical classification which are detailed in the historical ordinance will be eligible for city and county tax deferment of 50% of the taxable assessed value. Please note that if the ordinance specify only certain parts of the property as being historic; the property will not qualify for 100% historical classification.

7. Once the ordinance has been approved and filed with the register of deeds the owner of the property can file for tax deferment with the City/County Real Estate Appraisal Department during the month of January. All historical applications are to be filed between January 1st and January 31st of any given year as specified under North Carolina General Statutes.

8. This historical classification will remain on the property until it loses its eligibility for historic classification because of a change in an ordinance or a change in the property.

9. In the event that the property becomes disqualified, taxes shall be computed as if the property had not been classified for that year, and taxes for the preceding three fiscal years that have been deferred shall be payable immediately, together with interest as indicated in G.S. 105-360 for unpaid taxes. Interest shall accrue on the deferred taxes as if they had been payable on the dates on which they originally became due. If only a portion of the historic property loses its eligibility for the classification, a determination shall be made as to the amount of deferred taxes applicable to that part, and taxes shall become collectible with interest only on the part that becomes disqualified.

10. It is the obligation of the taxpayer to inform the City/County Real Estate Appraisal Department of any disqualification of a historic property.

Location:

Mecklenburg County Assessor – Real Estate Division
Valerie Woodard Center
3205 Freedom Drive, Suite 3500
Charlotte, NC 28208