HomeMy WebLinkAboutAgenda 04-20-1999 - 9cORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: Apri120, 1999
Action Agenda
Item No. 9_'~S
SUBJECT: Blue Cross Blue Shield Property Tax Refund Request
DEPARTMENT: Assessor's Office
PUBLIC HEARING: (Y/1~ No
ATTACHMENT(S):
Resolution
Tax Refund Request
INFORMATION CONTACT:
John Smith, Jr., ext 2101
TELEPHONE NUMBERS:
Hillsborough 732-8181
Chapel Hill 968-4501
Durham 688-7331
Mebane 227-2031
PURPOSE: To consider adoption of a resolution related to a request for property tax refund.
BACKGROUND: On January 4, 1999 the Orange County Tax Office received an amended 1998
Business Personal Property Listing Form from Blue Cross and Blue Shield (BCBS). Also included
was a request for a refund on business personal property improperly listed by Blue Cross and Blue
Shield in 1998. Under General Statute 105-381(b), "Action of Governing Body" provides that
"upon receiving a taxpayer's written statement of defense and request for release or refund, the
governing body of the Taxing Unit shall within 90 days after receipt of such a request determine
whether the taxpayer has a valid defense to the tax imposed or any part thereof and shall either
release or refund that portion of the amount that is determined to be in excess of the correct liability
or notify the taxpayer in writing that no release or refund will be made ".
Denial of this requested refund is recommended on two grounds:
1). N.C. General Statutes do not make provisions for amending a listing form. Blue Cross and Blue
Shield did, however, have the legal right to request a hearing before the Boazd of County
Commissioners related to their 1998 valuation. As long as the Boazd of County Commissioners had
the legal authority to change values, the Boazd could have heazd this request. However, the Board's
authority to adjust values ends on the last day of each calendaz yeaz. Blue Cross and Blue Shield
filed no appeal or request for a hearing prior to the end of calendaz yeaz 1998 and, therefore, lost
their rights to request an adjustment for tax year 1998.
2). G.S. 105-381(b) allows for a refund only when there is a clerical error or an illegal tax. Based
on the information supplied to date by Blue Cross and Blue Shield, it is cleaz that a clerical error by
the County is not the basis for a refund. Based on the information supplied to date by Blue Cross
and Blue Shield, it is also impossible to determine that an illegal tax exists.
FINANCIAL IMPACT: The amended 1998 business listing form shows $3,891,495 worth of
personal property incorrectly listed. Approving this refund would result in a refund amounting to
$63,509.19. A full break down is shown below:
GO County = $ 35,101.28
G2 Chapel Hill= $ 20,936.24
CH School = $ 7,471.67
Total: $63,509.19
Under State law, upon notification that the refund has been denied, BCBS would have up to 3 years
to bring a civil action against the county.
RECOMMENDATION: The Manager recommends that the Board approve the attached
resolution denying the property tax refund request, in accordance with G.S. 105-381.
NORTH CAROLINA
ORANGE COUNTY
REFUND RESOLUTION (Denial)
Whereas, North Cazolina General Statutes 105-381 allows for the refund of taxes when the Boazd of County
Commissioners determines that a taxpayer applying for the refund has a valid defense to the tax imposed; and
Whereas, as to each of the properties listed in the Request for Property Tax Refunds, the taxpayer has not
timely applied in writing for a change in value of properties in its 1998 personal property listing; and
Whereas, as to each of the properties listed in the Request for Property Tax Refunds, the taxpayer has timely
applied in writing for a refund of the tax imposed ;and
Whereas, as to each of the properties listed in the taxpayer's Request for Property Tax Refunds, the data and
other information provided by the taxpayer does not provide a factual or legal basis for the property tax refund
requested.
NOW, THEREFORE, TT IS RESOLVED BY THE BOARD OF COUNTY COMNIISSIONERS OF
ORANGE COUNTY THAT the property tax refund recommended for denial is denied.
Upon motion duly made and seconded, the foregoing resolution was passed by the following votes:
Ayes: Commissioners
Noes:
I, Beverly A. Blythe, Clerk to the Board of Commissioners for the County of Orange, North Cazolina, DO
I-IEREBY CERTIFY that the foregoing has been carefully copied from the recorded minutes of the Boazd of
Commissioners for said County at a regular meeting of said Boazd held on ,said record having
been made in the Minute Book of the minutes of said Boazd, and is a true copy of so much of said proceedings of said
Boazd as relates in any way to the passage of the resolution described in said proceedings.
WITNESS my hand and the corporate seal of said County, this day of
199
Clerk to the Boazd of Commissioners
=~ f~N~~ ~'ov~c ~~~
December 30, 1998
Osage County Assessor's Office
Post Office Box 8181
Hillsborough, North Carolina 27278
i One independence Cen~r• a Pfione: 704 372 6300
Suite 1100
101 North Tryon Street ~~ y
Charlotte, North Carolina 28246 ~° ~ =~
OR•~NCE :r~t~l+i7'Y
TAY 01~~=iCe
Corrections for Blue Cross ~ B1ue Shield ofNbrth Carolina
1998 Tangible Business Personal Property Account 34783
Dear Sirs:
Please accept the following information to comet the 1998 Tangible Business Personal Property Return
far Blue Cross 8t Blue Shield of North Carolina. The corrections are the result of a fixed asset inventory
review recently completed by our firm The review consisted of a cost reconciliation to the most ctareat
fixed asset ledgers and an inventory verification of those assets.
The majority of the cornctions are the result of fixed assets retired but not removed from the fixed assets
ledgers. Other corrections are for tangible personal assets found in real property ledgers and the
inclusion of only the most current year's expensed items- F~ensed items are considered to have a
physical life of one year ar less.
Docimneats to support the coinected return are as foIlows:
• Cost Worksheet showing costs by t type and year acquired -One Page
• Summary of Costs showing book costs, tangible pessonaal costs as of 12/98, and over reported costs
for tax years 1995 through 1998 -Three Pages
• Status sheet showing non rcportable.descriptions and costs for aII Blue Cre>BS locations -One Page
• Orange County Retirements showing the detail of the asset by status c~tego~ry and year retired -
Thirty One Pages
• Quality Check sheet showing a sample of the major non-reportable assets fair all Blue Cross locations
and the verification reason -Two Pages
Z
Due to these corrections, on behalf of our client Blue Cross and Bhx Shield of North Carolina, we
request a release or reftnd of the overpayment of property taxes, whichever is appropriate depending on
current payment status, on the above referenced account, accardiag to the remedies provided in General
Statutes § 105-381. Should you need additional information, please call me at 704-331-2004.
Very truly yours,
C ha~Qi,o
Charles A. Lang
~gQ
CALJchk
Copy to: Steve Chewier, Treasurer, Bh~e Cross and Blue Shield
4
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