HomeMy WebLinkAboutAgenda - 04-19-2016 - 7-b - Establishment of a Policy to Provide the Board of Equalization and Review Guidance on the Imposition of Penalties 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 19, 2016
Action Agenda
Item No. 7-b
SUBJECT: Establishment of a Policy to Provide the Board of Equalization and Review
Guidance on the Imposition of Penalties
DEPARTMENT: Tax Administration
ATTACHMENT(S): INFORMATION CONTACT:
Dwane Brinson, Tax Administrator,
Draft Policy 919-245-2726
John Roberts, County Attorney,
919-245-2318
PURPOSE: To consider adopting a policy to assist the Board of Equalization and Review in
determining how and when to compromise tax penalties.
BACKGROUND: The Board of County Commissioners indicated the need to have a
standardized policy for the compromise of tax penalties in Orange County in order to avoid any
appearance of unfairness to Orange County taxpayers. Currently the Board of Equalization and
Review has no guidance in this area. A standardized approach to the compromise of tax
penalties will benefit both the Board of Equalization and Review and the taxpayers of Orange
County.
FINANCIAL IMPACT: The approval of this item has no financial impact on the County. This is
an administrative action only.
SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated
with this item.
RECOMMENDATION(S): The Manager recommends the Board discuss and consider the
policy in order to provide the Board of Equalization and Review with needed guidance for the
imposition of tax penalties.
2
DRAFT
Section I: Tax Administration
Policy 1.0:
Reviewed by: County Attorney/Tax Administrator
Approved by: Board of County Commissioners
Original Effective Date: April 19, 2016
Revisions:
Policy Statement
It is the policy of Orange County to provide fair and equitable treatment to all residents of Orange County.
Purpose
To provide an administrative guide whereby the Board of Equalization and Review may fairly and equitably
exercise compromise authority.
Applicability
Applies to all cases in which the Board of Equalization and Review may, subject to the provisions of NCGS
105-312(k), compromise the imposition of penalties.
Procedure
1.1 Circumstances in which the Board of Equalization and Review may compromise are set out in this
section 1.1.
1.1.1 Economic Hardship. In situations in which the taxpayer has suffered economic hardship that has
severely impacted the taxpayer's ability to pay including but not limited to; a sudden serious illness of the
taxpayer or a member of the taxpayer's immediate family(parent, spouse, or child of the taxpayer), the death of
the taxpayer or a member of the taxpayer's immediate family, a natural disaster such as a tornado,hurricane,
fire, or accident that destroyed property and records.
1.1.2 Fairness. In situations in which the taxpayer's tax payment was delayed or late either entirely through
the verifiable fault of a third party or in which a preponderance of the cause of delay rests with a third party and
not with the taxpayer.
1.1.3 Inequality. In situations in which a taxpayer in a similar or like situation received a compromise and
failure to compromise would result in a significantly unequal impact to the taxpayer.
1.1.4 Special Circumstances. Circumstances specific to the taxpayer that,when observed and considered by a
reasonable and uninterested person,would appear to warrant a compromise of an otherwise appropriate penalty.
1.2 Exceptions shall be made in some situations as provided in this section.
1.2.1 Penalties that are assessed as a result of a delay in payment caused by unsuccessful strategies engaged
by the taxpayer that intentionally seek to lower the valuation of taxpayer's property or direct the revenue outside
Orange County may not be compromised.
1.3 The burden is on the taxpayer to demonstrate by competent evidence he or she meets the requirements
for one or more of the reasons for compromise listed in section 1.1.
This policy may be reviewed annually and updated as needed by the Attorney's and Tax Administrator's
Offices subject to approval by the Board of County Commissioners.