NC S821

Eliminates the $45,000 property value cap and fully exempts the entire appraised value of a permanent residence from property taxes for permanently disabled veterans and their surviving spouses.

Defines eligible disabled veterans as those with honorable service who have received federal disability benefits under 38 U.S.C. § 2101, possess a service-connected permanent total disability certification, or are deceased veterans whose death resulted from a service-connected condition.

Extends tax exemption eligibility to surviving spouses of disabled veterans who have not remarried and are North Carolina residents.

Establishes a reimbursement system where county tax collectors notify the Secretary of Revenue by September 1 annually of the total exempted property value, and the state reimburses counties by December 31 from sales tax collections.

Effective for taxes imposed for taxable years beginning on or after July 1, 2022.