Circuit Breaker Deferred Program SEARCH AND PAY TAXES

 

Are they a lien on my property?

Yes.  Deferred taxes are a lien on the property. 

 

Do all deferred taxes and interest become due when a disqualifying event occurs?

 

 

The current and last three years become due and payable.

 

Do I have to apply in person?

 For this deferment program, the qualifying owner(s) may submit an application by mail, fax, or in person at the Burke County Tax Office along with supporting income information. Since this program is based on the owner(s) annual income, a new application must be filed timely each year.

 

Do I need to reapply annually?

Yes.  This program requires annual application from the owner(s).

 

Does interest accrue on these deferred taxes?
Yes.  Interest accrues until the deferred taxes are paid.
 

 

 

 

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How are deferred taxes calculated?

Deferred taxes are determined by subtracting the amount a qualifying owner in the Circuit Breaker Tax Deferment Program pays from the total tax on the property.  The amount paid is based on either 4% or 5% of the owner(s) total annual income. See the examples below based on 2014 combined rates for Burke County and the City of Morganton:

 

4% of Income Example (Maximum income is $29,500)

Income

Residence Value

County Rate

City Rate

Combined Rate

Taxes

$25,000

$150,000

$0.68

$0.53

$1.21

$1,815.00

Maximum taxes allowed by program

$1,000.00

Amount of Deferred Taxes

$   815.00

 

5% of Income Example (Maximum income is $44,250)

Income

Residence Value

County Rate

City Rate

Combined Rate

Taxes

$30,000

$150,000

$0.68

$0.53

$1.21

$1,815.00

Maximum taxes allowed by program

$1,500.00

Amount of Deferred Taxes

$   315.00

 

How can I show that I am 100% totally and permanently disabled?
You must furnish certification that you are totally and permanently disabled from either a licensed physician (Physician Certification of Disability) or from a governmental agency such as the Social Security Administration.  (Just because you receive Social Security Disability, it does not mean you automatically qualify for this program.)  The agency must have the proper authority to determine qualifications for the disability benefits.  If all owners are over 65 years old, you do not need to submit a certification of disability.
 

How do I provide proof of income?

 If you are required to file a Federal Income Tax Return, you must provide a copy of the first page of the return.  (Income information is confidential and not part of public record.)   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 proceeding the tax year for which an application is made.  (For example, if an application is submitted for 2015, income for 2014 must be reported.)

 

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What are deferred taxes?

 Deferred taxes are the amount of taxes remaining after subtracting the amount paid from the amount that would have been paid if you were not in this program.
 

What are the qualifications for the Property Tax Homestead Circuit Breaker Deferment Program?

 You may be qualified for the Property Tax Homestead Circuit Breaker Deferment Program if you meet the following qualifications:

  • You are at least 65 years of age on January 1st of the year in which you wish to apply for the exclusion.
  • You and your spouse’s combined income for 2015 did not exceed $44,250
  • Your must own, reside and be a legal and permanent resident of Burke County for at least the last five (5) calendar years.

OR

  • You must be certified totally and permanently disabled by a licensed physician or governmental agency. 
  • You and your spouse’s combined income for 2015 did not exceed $ 44,250.
  • Your must own, reside and be a legal and permanent resident of Burke County for at least the last five (5) calendar years.

Multiple Owners (other than husband and wife) each owner must meet all requirements stated above, provide the necessary information, and agree to the rules of this program.
 

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What happens after I make application?

 Staff will review your application and may contact you if further information is needed.  Appraisal Staff will conduct a field review of your property to ensure the Tax Office Data is correct.
 

What happens if I apply and qualify one year and do not qualify the next or fail to file an application?

Until a disqualifying event occurs, the deferred taxes will remain a lien on the property but, not become due.  Since incomes vary from year to year, it is possible to qualify one year and not the next, and then re-qualify the next.
 

What is considered “INCOME” and how much can I make and still qualify for the Property Tax Homestead Circuit Breaker Deferment Program?

 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, interest, and rental income.  For 2016 applications, the income limit is $44,250.  This threshold is adjusted annually for the cost of living.
 

What is considered part of my Homestead/Permanent Residence?

 It includes your dwelling, the dwelling site (not to exceed 0.50 acre), and related improvements such as a garage or carport.  The Dwelling may be a single family residence, a unit in a multi-family complex, or a single or multi section manufactured home. 

 
 

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What is the Property Tax Homestead Circuit Breaker Deferment Program?

The Property Tax Homestead Circuit Breaker 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 the limits are deferred until there is a disqualifying event.  When a disqualifying happens the deferred taxes and interest become due and payable.  See the 2016 limitations below:

 

INCOME

Tax Limitations for 2016

          $0 to $29,500

 Taxes are limited to 4% of annual household income.

 $29,501 to $44,250

 Taxes are limited to 5% of annual household income.

           Over $42,900

 Does not qualify for this program.

Please note: Homeowners with incomes of $29,500 and less, that are over 65 years of age or are totally and permanently disabled should consider the Property Tax Homestead Exclusion.  The Property Tax Homestead Exclusion may provide a greater tax relief than the Circuit Breaker Tax Deferment Program

 
 

When is the deadline to file an application?

Applications for this exclusion must be received and filed by June 1st of the year for which the exclusion is applied for.

 
 

When will be deferred taxes become due?

Deferred taxes become due when a disqualifying event happens.  A disqualifying event would be:

  • Death of the owner.
  • Transfer of the property.
  • Owner ceases to use the property as a permanent residence.

 

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