(The Center Square) – North Carolina’s real estate boom has driven up home prices drastically in recent years, leading to anticipated increases in property taxes as nearly a quarter of counties conduct revaluations in 2023.
In Mecklenburg County, officials expect revaluations to average a 51% increase when residents get their bill this summer.
“It really hits seniors hard,” Heather Burkhardt, executive director of the North Carolina Coalition on Aging, told The Center Square. “Over 82% of North Carolina seniors own their own home, and they tend to be on fixed incomes.
“Being able to make those adjustments in their budget is challenging, so we really need some creative solutions.”
Lawmakers in both chambers of the General Assembly have introduced legislation to provide some relief.
House Bill 105, sponsored by Republican Rep. Matthew Winslow, a Granville homebuilder, to allow seniors who “will be at least 65 years of age during a portion of the calendar year” to defer taxes imposed on increases in appraised value of the owner’s permanent residence. The bill has 10 Republican co-sponsors.
Sen. Joyce Waddel, D-Mecklenburg, introduced a substantially similar Senate Bill 563 on Wednesday.
While officials at the Coalition on Aging “haven’t yet fully endorsed or supported these” bills, Burkhardt noted that they would benefit seniors in high-growth areas who are struggling the most because “an individual could predict and plan on what” their tax bill will be.
Michelle Kenny, legislative assistant for Winslow, said HB105 was spawned from constituent complaints and media reports of seniors who can’t afford to keep up with their rising property taxes.
“People are having to move out of their homes because they can’t pay taxes,” she said.
“I want to help our seniors stay in their homes,” Winslow said in a statement.
Burkhardt confirmed it’s an issue she hears frequently.
“My sense is probably what happens more times than not is individuals sell their homes or look for a different house,” she said. “The solution to sell your house and find another is a challenge in itself.”
Recent analysis of U.S. Census Bureau data highlighted by The Center Square shows 16.3% of North Carolina’s more than 10 million residents are 65 or older. That equates to about 1.7 million seniors in the Old North State.
A study by 24/7 Wall Street, using data from the personal finance website Bankrate, recently analyzed a multitude of factors including property tax rates to highlight the best and worst states for retirement.
The study ranked North Carolina 15th overall, and 16th for affordability, a category that considers the overall cost of living as well as sales and property taxes.
