Cervania introduces proposal to expand property tax relief, add excise tax in NC House

A bill introduced by State Rep. Maria Cervania in the North Carolina House seeks to expand property tax relief and implement an excise tax related to real estate, the North Carolina State House reports.

Filed as HB 1181 on April 30 for the 2025 regular session, the bill is officially titled ‘Property Tax Modifications.’

Here is a summary of the measure, using information from the bill text, including explanations clarifying its key points.

This legislation would extend property tax relief programs in North Carolina and introduce a new excise tax related to real estate. It proposes to increase the income threshold for elderly or disabled married homeowners applying for the homestead exclusion, expand homestead circuit breaker eligibility based on area median income, and eliminate repayment requirements on previously deferred circuit-breaker taxes and their associated liens. Homeowners must reapply for circuit-breaker relief once every three years. The bill provides a $20 million one-time grant allocation for 2026-27 to aid local governments in modernizing and shortening property reappraisal timelines. Beginning Jan. 1, 2027, the legislation would initiate a deed transfer–equivalent excise tax on transfers of controlling interests in entities that own North Carolina property, with some exceptions and penalties. Most measures are set to take effect July 1, 2027.

Among the bill’s two sponsors, Cervania submitted the largest number of proposals—45—during the 2025 regular session.

Under the multi-step legislative process in North Carolina, a bill is filed by a lawmaker and assigned to a committee for evaluation. It is required to pass three readings in both chambers. If one chamber amends a bill after passage in the other, an agreement on the new version is necessary. Following approval by both chambers, the measure advances to the governor, who has 10 days (or 30 if the legislature is out of session) to sign, veto, or let it become law without a signature.

Further details on bills and other measures can be found here.

Cervania earned a bachelor’s degree from the University of California at Berkeley.

A Democrat, Cervania was elected in 2023 to the North Carolina State House, succeeding Gale Adcock as representative of the 41st House district.