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HomeMy WebLinkAboutAgenda - 06-01-2010 - 4dORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 1, 2010 Action Agenda Item No._ -SUBJECT: Property Tax Refund Request DEPARTMENT: Tax Administration PUBLIC HEARING: (Y /N) No ATTACHMENT(S): INFORMATION CONTACT: Jo Roberson, 245 -2727 Resolution 04/02/2010 Refund Request Letter 04/12/2010 Refund Denial Letter PURPOSE: To consider adoption of a refund resolution related to one (1) request for property tax refund. BACKGROUND: The Tax Administration Office has received one (1) request from a taxpayer for refund of property taxes paid in a prior fiscal year. North Carolina 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 ". North Carolina law allows the Board to approve property tax refunds for the current and four previous fiscal years. Under North Carolina General Statute 105 -380, "the governing body of a taxing jurisdiction is prohibited from releasing, refunding, or compromising all or any portion of the taxes levied against any property within its jurisdiction except as expressly provided ". Per the same statute, any tax that has been refunded in violation of law may be recovered from any members of the governing body who voted for the refund. In this case, the taxpayer has requested a refund for tax years 2005 through 2009, but there is no legal basis for granting a refund. In response to the taxpayer's inquiry, this property was re- visited in 2010. After review, it was the appraiser's judgment that a reduction in value for the current year was warranted. Although the 2010 field review did result in a reduction in value, the General Statutes (GS 105- 381) very clearly define the standards for refunds. For a refund to be legal, the taxpayer must demonstrate that there was (a) a tax imposed through clerical error; (b) an illegal tax; or (c) a tax levied for an illegal purpose. N It is the Tax Administrator's recommendation that the requested refund be denied. This recommendation is based on several statutory reasons. First, neither appraiser judgment nor an error in measurement constitutes an illegal tax. The Tax Administration office has worked closely with the County Attorney's office and specifically the Staff Attorney to define an illegal tax. The area in question is the space above the garage. The County incorrectly assessed the area as being finished. A field inspection verified that the area was not a finished space. However, the space does exist and has not been taxed twice. By definition, an illegal tax is a duplication of taxation, a situation where one is taxed twice for the same property. An example of this would be where the same house is taxed on two different tracts of land when it only existed on one tract. An illegal tax could also occur when the County appraiser mistakenly appraises the home as having two floors when only one floor exists. Second, appraiser judgment does not constitute a clerical error. Again, the Tax Administration office has worked closely with the County Attorney's office to define a clerical error. By definition, a clerical error is an error of transposition. For example, a clerical error would result when the clerk is keying from the appraiser's property record card and the clerk enters "two stories" when the appraiser indicated on the property record card that the house is a single story. Another example might be when the appraiser indicates that the house was built in the year 2000, but the clerk enters "2000" into the data entry area for fireplaces. Finally, the taxpayer has been notified at least twice each of the years in which a refund is requested as to the value of the property. There were opportunities to appeal the value each year within the statutory deadlines. Also, there is no guarantee that the value would have been changed in previous years had a timely appeal been made. FINANCIAL IMPACT: Denial of this application for refund will result in no reduction in monies from the County, municipalities, and special districts. However, approval of this request would result in a reduction in monies from the County, municipalities and special districts for the total of all refund years in the amount of $2,172.69. RECOMMENDATION(S): The Manager recommends that the Board approve the attached resolution denying one (1) property tax refund request in accordance with North Carolina General Statute 105 -381. NORTH CAROLINA " ' E's- a 0 to — 0+(0 ORANGE COUNTY REFUND/RELEASE RESOLUTION (Denial) Whereas, North Carolina General Statutes 105 -381 and/or 330.2(B) allows for the refund and/or release of taxes when the Board of County Commissioners determines that a taxpayer applying for he ref ind /release has a valid defense to the tax imposed; and Whereas, the properties listed in each of the attached "Request for Property Tax Refund/Release" has been taxed and the tax has been collected: and Whereas, as to each of the properties listed in the Request for Property Tax Refund/Release, the taxpayer has timely applied in writing for a refund of the tax imposed but has not presented a valid defense to the tax imposed as indicated on the Request for Property Tax Refund/Release. NOW, THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF ORANGE COUNTY THAT the presented property tax refund(s) and release(s)are denied. Upon motion duly made and seconded, the foregoing resolution was passed by the following votes: Ayes: Commissioners Noes: I, Donna Baker, Clerk to the Board of Commissioners for the County of Orange, North Carolina, DO HEREBY CERTIFY that the foregoing has been carefully copied from the recorded minutes of the Board of Commissioners for said County at a regular meeting of said Board held on said record having been made in the Minute Book of the minutes of said Board, and is a true copy of so much of said proceedings of said Board 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 12010. Clerk to the Board of Commissioners C 4 04!02/2010 Guerry W. O'Briant 1615 Efland- Cedar Grove Road Efland, N. C. 27243 Orange County Tax Assessor P.O. Box 8181 Hillsborough, N. C. 27278 Re: Tract # 364257 Pin # 9545 -88 -6455 Att: Jo Roberson, Tax Collector -RMV Dear Jo Roberson, Last year when I received my property tax bill I called your Dept, to review my accost with Tersea Moore and found out that since I moved in our house in 2005 we have been charged for having a completed apartment over the garage - In 2004 when I was building these house and garage I was informed by Orange County planning that the garage could not be habited after it had been roughed in. I stopped all work on the apartment, since it could not be used Had I been informed this from the start I could have saved myself money! However h was still considered a bedroom when I went for a septic permit ?? I found this out and asked to have it corrected. Mr. Ray Jordan came out and confizxmed that the apartment was not completed. When your Dept did the tax appraisal in 2005 they were told by me that the apartment was not going to be completed. Ms. Moore told me to send a letter to you to be reimbursed for the tax I had been over charged since 2005. Your prompt attention into this would be appreciated Also since the economy has taken such a down swing I would like to have my whole place reappraised and ray property taxes adjusted- Sincerely Guezry W. O'biiant 05126/2010 16:05 9196443091 5 11 L je!'C ORANGE COUNTY TAX OFFICE 228 SOUTH CHURTON STREPT P.O. BOX 8181 HILLSBOROUGH, NORTH CAROLINA 27278 TELEPRONE (9M2"100. FAX 6"3091 April 12, 2010 Guerry W O'Briant 16155 Efland Cedar Grove Rd Efland, NC 27243 RE: Tract #364257 Refund ,Request Dear Mr. O'Briant: This letter is in reference to your correspondence received April 2, 2010 requesting a refund of taxes paid for the 2009 and prior tax years. North Carolina General Statute 105 -381 allows for the refund of taxes under very limited circumstances. Since receiving your refund request we have tried to find a way to legally honor your request. We keep ending up at the same conclusion that this situation falls under a category that statutorily is not refundable. Instead, the proper step is to make the correction for the current tax year and future years_ In accord with these conclusions, I am enclosing a copy of your 2010 property record card to assist you in determining that you are properly taxed now. Please review the property record card and let me laiow if there are any further changes or questions. If it would be helpful, I will be glad to have an appraiser meet with you at your home to go over everything and make certain everything is correct. We always endeavor to find a way to make refunds. Sometimes we are not successU, Refunds have to be approved by the Board of County Commissioners, If the commissioners were to make a refund not authorized by the statutes those commissioners individually become personally liable for those improperly refunded fiords. Due to this liability we are always careful and diligent in determining the legality of each refund request. 05/26/2010 16:05 9196443091 -- -- A On the basis of our findings, a refund is not authorized under NC GS 105- 381and could not be recommended to the county commissioners for approval. However, you do have thirty (30) days to formally appeal the 2010 valuation as indicated on the enclosed property record card. If you wish to appeal you should make written request to the Board of Equalization and Review, PO Box 8 18 1, Hillsborough, NC 27278. If I can provide any further explanation or assistance of any kind, please do not hesitate to call. Sincerely, Judy Ryan Deputy Assessor