Q: Is property owned by members in active duty military exempt from taxes?
A. If your home of record is not North Carolina, you do not have to pay taxes on most personal property. This exemption does not include County taxes on real property or personal property used to create income. The exemption covers motor vehicles (including trucks), campers, motor homes, boats, and outboard motors, personal recreational watercraft (such as wave-runners and jet-skis), aircraft, and manufactured homes (occupied by the owner). The property must be titled in the name of the military service member in order to qualify for exemption. If there is a non military co-owner (other than spouse), the property is taxable. In order for a manufactured home to qualify, it must be the service member's primary residence. To obtain the exemption, the service member can submit their latest Leave & Earnings Statement (LES) or other proof showing their home state of record to the Tax Department. The documents can be submitted by mail, fax, or in person. The exemption is valid until the expiration date on the LES or the service member becomes a legal resident of North Carolina.
Q: Are there any special exemptions for disabled veterans?
A. If you are a disabled military veteran who is totally and permanently disabled from a service-related disability and receive benefits under 38 U.S.C. 2101, you may qualify for an exemption from property taxes of up to $38,000 value of your permanent residence. NCGS 105-275(21)
If you are a disabled military veteran who became disabled during WWII, the Korean Conflict, or the Viet Nam Era, any vehicle given to you by the United States Government on account of disabilities occurring during those times of conflict is exempt. NCGS 105-275(5)
If you are a disabled military veteran that owns a motor vehicle that is altered with special equipment to accommodate your service-connected disability, your special equipment vehicle may be exempt. This exemption applies only to disabled veterans who qualify for benefits as provided in 38 U.S.C. 101(2) and 3901. NCGS 105-275(5a)