Under current law, the property tax homestead exclusion for disabled veterans, set at the first $45,000 of appraised value of the residence, is excluded from taxation. Revises the property tax homestead exclusion for disabled veterans under GS 105-277.1C, so that the value of the exclusion is set as follows for the following claimants:

• Disabled veteran exclusion. – For a disabled veteran, the exclusion amount could be one of four listed amounts ranging from $25,000, to $100,000, depending on the veteran's disability rating, which ranges from 10% to less than 30% to qualify for the lesser amount, all the way up to 70% or greater to qualify for the highest amount.
• Surviving spouse exclusion. – For the surviving spouse of a disabled veteran, the exclusion amount is equal to the greater of (1) the amount described above or (2) the first $45,000 of appraised value of the permanent residence, provided that the applicant establishes eligibility for such exclusion by providing certification from the United States Department of Veterans Affairs that, as of January 1 preceding the taxable year for which the exclusion is claimed, the veteran's death was the result of a service-connected condition. (Current law allows a surviving spouse to provide such certification from another federal agency as well.) Makes conforming changes to the definition of disabled veteran.

Streamlines the disability component of the definition of disabled veteran so that a veteran has to show only that the veteran has received a certification by the US Department of Veterans Affairs showing that, as of January 1 preceding the taxable year for which the exclusion is claimed, the veteran has been assigned a disability rating for a service-connected condition (was, veteran can establish entitlement to homestead exemption as a qualifying veteran under the statute by either (1) establishing permanent and total service connected disability by the VA or (2) establishing receipt of adaptive housing under 38 USC 2101 due to blindness or other permanent and total disabilities). Makes organizational and conforming changes. Effective for taxes imposed for taxable years beginning on or after July 1, 2025.