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HomeMy WebLinkAboutAgenda - 11-02-2006-5fORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 2, 2006 Action Agenda Item No. 5 ~-F SUBJECT: Applications far Property Tax Exemption DEPARTMENT: Assessor PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Exempt Status Resolution Spreadsheet 8/29/06 Orange Charter School Letter Memo from John Smith INFORMATION CONTACT: John Smith, 245-2101 PURPOSE: To consider four (4) untimely applications for exemption/exclusion from ad valorem taxation for the 2006 tax year. BACKGROUND: North Carolina General Statutes state that applications for exemption must be filed during the normal listing period, which is during the month of January. NCGS 105- 282.1(a)(5) does allow some discretion. Upon a showing of good cause by the applicant for failure to make a timely application, an application for exemption or exclusion filed after the close of the listing period may be approved by the Department of Revenue, the board of equalization and review, the Board of County Commissioners, or the governing body of a municipality, as appropriate. An untimely application for exemption or exclusion approved under this subdivision applies only to property taxes levied by the county or municipality in the calendar year in which the untimely application is filed. Two applicants are applying,for homestead exclusion based on NCGS 105-277.1, which allows exclusion of the greater of twenty thousand dollars ($20,000) or fifty percent (50%) of the appraised value of the residence. Based on the information supplied in the current application and the above referenced general statutes, the applicant can be approved for 2006. The opinion of the Assessor is that the information provided to date satisfies the good cause requirement of NCGS 105-282.1(a)(5) and that the two (2) properties should be approved for exclusion. Additionally, `A Public School of Choice" has two tracts and has applied for exemption from taxation for 2006 on both. The applicant is applying for exemption based on NCGS 105-278.4, which allows exemption for real and personal property used for educational purposes. Based on the information supplied in the current applications and the above referenced general statutes, the applicants can be approved for 2006. The opinion of the Assessor is that the information provided to date satisfies the good cause requirement of NCGS 105-282.1(a)(5) and that the two (2) properties should be approved for exemption. 2 FINANCIAL IMPACT: The reduction in the County's tax base associated with approval of these exemption applications will result in a reduction of 2006 taxes due to the County, municipalities, and special districts in the amount of $20;420.14. RECOMMENDATION: The Manager recommends that the above listed applications for 2006 exemption be approved. NORTH CAROLINA ORANGE COUNTY EXEMPTION/EXCLUSION RESOLUTION Whereas, North Carolina General Statutes 105-282.1 empowers the Board of County Commissioners to approve applications for exemption after the close of the listing period, and Whereas, good cause has been shown as evidenced by the information packet provided, and Whereas, the Assessor has determined that the applicants could have been approved for 2006 had applications been timely. NOW, THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF ORANGE COUNTY THAT the properties applying for exemption for 2006 are so approved as exempt. 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 , 2006. 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Box 8181 Hillsborough, NC 27278 Dear Mr. Smith: ~ ~ ~~_'.f }`tV~ib 1113~J~~ ~I I/'~~y~ lfW~SC e~ I a.m. writing in regard to a property tax bill for the year 2006 that was recently sent to "A Public School of Choice, Inc." (Orange Charter School) The assessment is for two parcels of land that are used solely for operating a free, public school., Tract #: 456923 Acct. #: 284248 Bill #: 200673193 Tract #: 456924 Acct. #: 2$4249 Bill #: 200673194 Orange Charter School has been at our current location since August of 2002. At that time, school governance was under the direction of Financial Reform for Excelleizcc in Education (FREE), anon-profit corporation. The board of FREE applied for, and. received tax-exempt status for the school at that tune. In :tune of 2003, the charter for Orange Charter School was officially transferred from FREE to "A Public School of Choice, lnc." The governing body remained anon-profit organization operating a public school. According to the accounting firm that handles our financial affairs, Orange Charter School has never paid property taxes at this location, dtie to tax-exempt status. In .Tiny of. this year, I received a packet of information from the Orange County Assessor's Office regarding an application for property tax exemptio». Since we had. never paid. a.n assessment before, we did not realize that an application was necessary for this year. A tax bill in the amount of $19,495:06 was mailed to us in August, 2006. Today; I phoned the tax assessor's office and spoke v,~i.th Ms. Gail Jones. She advised that the bill was probably the result of the ownership changing bands from FREE to "A I'tiblic School of Choice, Inc." Since that change occurred in June of 2003, it does . not explain why we are just receiving this information. Sh.e suggested that I complete th.e two application forms and send them with this cover letter, explaining our situation and. asking that you accept a late application. The applications are obviously late due to the fact that we were unaware of the need to file an application until July of this year. Please accept the "late" applications along with this detailed explanation and restore our tax- exeinpt status as anon-profit, public school. If additional information is required, please 0 contact me at the above address or by phone at (919) 644-6272. Thank you for your immediate attention to this matter acid I look forward to hearing from you in the near future. Sincerely, f,L~ c~ W . `~~~ David W. Christenbury Principal To: Rod Visser From: John Smith Re: More Information on A Public School of Choice Exemption • This charter school serves kindergarten through 8~' grade and is known as and is doing business as Orange Charter School. • Located in the Meadowlands (see map) • In 2005 the school was under the ownership name of Financial Reform for Excellence (FREE) and was exempt. • In July of 2005 ownership transferred to A Public School of Choice (Per their letter the charter also transferred) • Tax office notified the school that a new application would be required for 2006 because of the name change in July of 2005. This letter was mailed to them in July (see attached). • There was no action taken to make application for exemption until after they received the 2006 tax bill. • See enclosed Articles of Incorporation along with "Attachment A" • See enclosed documentation of transfer of Charter from FREE • See enclosed minutes • See enclosed 501(c)(3) letter Rod, if you need more let me know. If you would like us to pull this for any reason what so ever that we can also do. Thanks