Issue Position: Seniors - Seniors Tax Relief

Issue Position

Issue Position: Seniors - Seniors Tax Relief

Bev Perdue's Seniors Tax Relief Agenda

Bev Perdue strongly believes that all North Carolinians owe a major debt to our older citizens who have worked so hard to build the quality of life that our state enjoys today.

And as North Carolina's population continues to grow[1], we expect a significant number of new seniors to migrate to our state in the coming years. In fact, North Carolina seniors are projected to jump from 12% of our current population to 17.9% or more than 2.1 million seniors by 2030.[2]

With that type of population growth comes significant new challenges. From the mountains to the sand hills to the coast - many seniors on fixed incomes across our state face rising property taxes that threaten their ability to remain in their homes.

Throughout our state, especially in areas of high growth, along our coast, and in the mountains, seniors are facing significant increases in home property value. In the last five years alone, property values in North Carolina have increased 25% - more than $96.4 billion dollars.[3] Many seniors living on fixed incomes are forced with making a very difficult decision about whether they move or stay in their home - the same home their family may have owned for generations or the same home in which they may have raised their children.

In North Carolina, we are better than that…and that's why Bev Perdue is proposing tax relief for seniors, including:

* Expanding the Homestead Exemption that Perdue helped to expand as a legislator
* Freezing future property tax evaluations for seniors
* Establishing a family caregiver tax credit

Perdue - A Record of Fighting for Seniors

Bev Perdue has a long history of supporting seniors. She spent several years focused on aging issues related to her PhD and as a local healthcare administrator worked directly to improve the health of seniors. It was her work helping seniors that ultimately led her to run for public office.

Perdue has long been a leader on senior related issues - including funding increases to the Homestead Exemption, improving the quality of care for seniors in long-term care facilities, and creating the Senior Tar Heel Legislature to give seniors a much needed voice in the development of senior related policy. As chair of the state Health and Wellness Trust Fund, Bev led the development of our state's innovative prescription-drug initiative (NC Senior Care) for needy seniors before the federal government instituted its new Part D program under Medicare. The President of the North Carolina AARP even praised NC Senior Care as "the best program for seniors in the nation."

Homestead Expansion

Bev Perdue has been a strong supporter of North Carolina's homestead exemption and its expansion. During her tenure in the state Senate, Perdue sponsored and voted for legislation to expand the homestead exemption for seniors.[4]

As North Carolina's next Governor, Bev will continue her long-term commitment to expand the homestead exemption by phasing its income limit up to $50,000 and maintaining the existing cost of living adjustment (COLA) in current law. Such an expansion will result in nearly 200,000 more seniors eligible for property tax relief.

Property Tax Evaluation Freeze

Coupled with the Homestead expansion, Bev Perdue will also freeze property tax evaluations for seniors who make less than $50,000 and have lived in their homes for more than 20 years.

Perdue's plan to freeze seniors' property tax evaluations will stop the dramatic growth of property taxes placed on the backs of seniors.

Because of the legal and constitutional implications regarding tax law uniformity in North Carolina, some analysts believe that a constitutional amendment may be necessary to pass this type of measure. Recent measures in the legislature have called for a property tax freeze through a constitutional amendment[5]; Bev will support ordinary legislation or a constitutional amendment if necessary to enact the freeze.

Establishing a Family Caregiver Tax Credit

We all know families who are caring for an older adult. In fact, estimates indicate that families provide more than 75% of all long-term care.

National research estimates that the out-of-pocket expenses of caregivers can average between $2,400-12,000 yearly depending on the intensity of care and the care recipient's medical condition. The average loss in wage income over a caregiver's working career has been calculated at over $500,000. And if family and friend caregivers had to be replaced by paid employees, the total cost would be over $40 billion a year.

Some states have created a tax credit for expenses of medically-authorized home equipment and supplies that family members purchase to help older adult relatives. Georgia, for example, offers a 10% tax credit up to a maximum $1,500 in purchases per year.

As North Carolina's next Governor, Bev Perdue plans to institute a family caregiver tax credit that starts out at a level similar to Georgia's. Additionally, she will strongly promote the credit to ensure that eligible families across North Carolina are able to participate.

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