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Home My WebLink AboutAgenda - 01-24-2017 - 6-d - Applications for Property Tax Exemption Exclusion ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 24, 2017 Action Agenda Item No. 6-d SUBJECT: Applications for Property Tax Exemption/Exclusion DEPARTMENT: Tax Administration ATTACHMENT(S): Exempt Status Resolution Spreadsheet Requests for Exemption/Exclusion INFORMATION CONTACT: Dwane Brinson, Tax Administrator, (919) 245-2726 PURPOSE: To consider sixteen (16) untimely applications for exemption/exclusion from ad valorem taxation for sixteen (16) bills for the 2016 tax year. BACKGROUND: North Carolina General Statutes (NCGS) typically require applications for exemption to be filed during the listing period, which is usually during the month of January. Applications for Elderly/Disabled Exclusion, Circuit Breaker Tax Deferment and Disabled Veteran Exclusion should be filed by June 1st of the tax year for which the benefit is requested. NCGS 105-282.1(a1) 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 provision applies only to property taxes levied by the county or municipality in the calendar year in which the untimely application is filed. Eleven (11) of the applicants are applying for homestead exclusion based on NCGS 105-277.1, which allows exclusion of the greater of $25,000 or 50% of the appraised value of the residence plus the value of up to one acre of land. One applicant is applying for exemption based on NCGS 105-278.3, which allows for an exemption of a property that is and wholly owned by a congregation, parish, mission, or similar local unit of a church or religious body, and is wholly and exclusively used for religious purposes. Two of the applicants are applying for exemption based on NCGS 105-273.(3a) and 105- 277.02, which is the Builder Property Tax Exemption. This exemption came into effect for taxes imposed for taxable years beginning on or after July 1, 2016. Qualified builders must apply annually, and certain real property that is held for sale may be classified for taxation at reduced valuation. 1 Two of the applicants are applying for exclusion based on NCGS 105-277.2 – 105-277.7, which allows for an untimely application to be approved for taxation at present use value assessment. Including these sixteen (16) applications, the Board will have considered a total of fifty-seven (57) untimely applications for exemption of 2016 taxes since the 2016 Board of Equalization and Review adjourned on May 28th. Taxpayers may submit an untimely application for exemption of 2016 taxes to the Board of Commissioners through December 31, 2016. Based on the information supplied in the applications and based on the above-referenced General Statutes, the applications may be approved by the Board of County Commissioners. NCGS 105-282.1(a1) permits approval of such application if good cause is demonstrated by the taxpayer. FINANCIAL IMPACT: The reduction in the County’s tax base associated with approval of the exemption application will result in a reduction of FY 2016/2017 taxes due to the County, municipalities, and special districts in the amount of $14,459.24. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends that the Board approve the attached resolution for the above-listed applications for FY 2016/2017 exemption. 2 NORTH CAROLINA RES-2017-003 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 Tax Administrator has determined that the applicants could have been approved for 2016 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 2016 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 ____________, 2017. _________________________________ Clerk to the Board of Commissioners 3 4 Late exemption/exclusion application-GS 105-282.1(a1) BOCC REPORT - REAL/PERSONAL JANUARY 24, 2017 ACCOUNT BILL ORIGINAL TAXABLE FINANCIAL NAME NUMBER YEAR VALUE VALUE IMPACT REASON FOR ADJUSTMENT Andrews,Robert H. 2877 2016 61,940 30,970 (293.60) Late application for exemption G.S.105-277.1 (Homestead Exemption) Cazco,Inc. 259645 2016 957,400 820,850 (1,624.13) Late application for exemption G.S.105-273.(3a)&105-277.02(Builder Property Tax Exemption) Francis,Jewel Carol 286202 2016 134,000 67,000 (1,078.97) Late application for exemption G.S.105-277.1 (Homestead Exemption) Freshwater,Danny G. 171204 2016 226,645 132,637 (891.20) Late Application for PUV Assessment G.S.105-277.2-105-277.7 Grimes,Benjamin W. 193521 2016 329,100 242,807 (792.69) Late Application for PUV Assessment G.S.105-277.2-105-277.7 Guill,Brenda 7261 2016 213,453 106,726 (1,026.29) Late application for exemption G.S.105-277.1 (Homestead Exemption) J Fuller homes,LLC 1058659 2016 245,600 69,400 (2,952.76) Late application for exemption G.S.105-273.(3a)(Builder Property Tax Exemption) Lane,Carolyn T. 7844 2016 132,735 66,367 (638.19) Late application for exemption G.S.105-277.1 (Homestead Exemption) Ramsey,Moses L 244436 2016 55,758 42,728 (119.69) Late application for exemption G.S.105-277.1 (Homestead Exemption) Thompson,Emma 301908 2016 148,100 74,050 (1,240.93) Late application for exemption G.S.105-277.1 (Homestead Exemption) Trimm,Emily F. 85606 2016 140,865 91,020 (472.53) Late application for exemption G.S.105-277.1 (Homestead Exemption) Temple of Light Church(Vallie Washington) 214089 2016 196,873 0 (1,893.13) Late application for exemption G.S.105-278.3(Religious Purpose) Webb,Louise Mack 254260 2016 171,201 145,612 (235.06) Late application for exemption G.S.105-277.1 (Homestead Exemption) Webb,Steve L. 105069 2016 167,200 110,458 (537.91) Late application for exemption G.S.105-277.1 (Homestead Exemption) Westbrook,Carolyn 5357 2016 170,876 107,419 (601.57) Late application for exemption G.S.105-277.1 (Homestead Exemption) Wright,Veronica 228963 2016 5,810 0 (60.59) Late application for exemption G.S. 105-277.1 (Homestead Exemption) Total 14,459.24 November 16, 2016 thru January 05, 2017 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20