House committee substitute to the 2nd edition makes the following changes. 
Amends GS 105-277.1C, the property tax homestead exclusion for disabled veterans, by requiring the State to reimburse each count and city for one-half of the taxes lost because of the increase in the maximum exclusion amount under the statute from the first $45,000 of appraised value to the first $61,000 of appraised value, effective for taxable years beginning on or after July 1, 2026. Requires county and city tax collectors to give the Secretary of Revenue (Secretary) a list of people who have qualified for the exclusion, as well as the total appraised value of the eligible property, the tax rate on the property, and the reduction in taxes due (to be calculated as specified). Requires the Secretary to distribute to each city and county, by April 15, 2207, and annually thereafter, an amount equal to 50% of the sum of the calculated amounts. Requires that the funds a county or city receives because it was collecting taxes for another unit of government or special district to be credited to the funds of that other unit or district. Requires the Secretary, in order to pay for the reimbursements and the cost of administering the reimbursement, to draw from collections under Part 2 (Individual Income Tax) of Article 4 of GS Chapter 105 an amount equal to the reimbursement and administration.
Changes the effective date of the act so that it is now effective for taxes imposed for taxable years beginning on or after July 1, 2026 (was, July 1, 2025).
Makes conforming changes to the act's long title.

Statutes affected:
Filed: 105-277.1C
Edition 1: 105-277.1C
Edition 2: 105-277.1C
Edition 3: 105-277.1C