What is a property tax freeze?

Property tax freezes are laws that restrict the amount of increase in property taxes that a local government can impose. In North Carolina, property taxes are largely determined by county governments and they have the ability to raise taxes on individuals and businesses if approved by the state legislature. Property tax freezes are designed to protect homeowners from large, sudden increases in property taxes. Property tax freezes fall into two categories: permanent and temporary. A permanent property tax freeze is in effect for the life of the property and cannot be changed or revoked. The permanent freeze essentially sets a cap on the amount of increase that a local government can impose. On the other hand, a temporary property tax freeze is only in effect for a certain period of time, usually five years, and can be revoked or modified. In North Carolina, property tax freezes are available to individuals who are 65 years of age or older, have owned the property for at least five years, and have sufficient income to pay the property taxes. The property tax freeze locks in the amount of taxes on the property as of the year they applied for the freeze, meaning they will not pay any increases over the next five years. This helps to provide seniors and others with limited incomes some financial stability.

Related FAQs

What is the difference between a property tax levy and a tax rate?
How can I appeal my property taxes?
How can I appeal my property taxes to the tax authorities?
What is the property tax rate?
Who is responsible for paying property taxes?
What is the difference between a mill levy and a tax rate?
What is the difference between a tax rate and an effective tax rate?
What is a homestead exemption?
What is property tax law?
What is the difference between assessed value and market value?

What is a property tax freeze?

Related FAQs

Related Blog Posts