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HomeMy WebLinkAboutAgenda - 06-13-2006-5vORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 13, 2006 Action Agenda Item No. ,rj - V SUBJECT: Property Tax Refund Request DEPARTMENT: Assessor's Office PUBLIC HEARING: (YIN) No ATTACHMENT(S): Draft Resolution of Denial Draft Resolution of Approval 03/21/06 Refund Request Letter 03/28/06 Assessor Letter 04/26/06 Property Owner Letter 04/28/06 Assessor Letter INFORMATION CONTACT: John Smith, (919)-245-2101 PURPOSE: To consider adoption of a resolution related to one (1) request for property tax refund. BACKGROUND: The Assessor's Office has received one (1) request from a taxpayer for refund of property taxes paid in prior fiscal years. 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 ar 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 far the current and four previous fiscal years. Under GS105-380 "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 2001 through 2005, but there is no legal basis for granting a refund, In response to the taxpayer's inquiry, this property was re- visited in February 2006, After review, it was the appraiser's judgment that a reduction in value to the improvement was warranted. For 2006, the valuation of the improvement was reduced. Although the 2006 field review did result in a reduction in value, the General Statutes (GS 105- 381)are very clear in defining what can and cannot be refunded. For a refund to be legal, the taxpayer must demonstrate that there was (a) a tax imposed through clerical error; or (b) an illegal tax; or (c) a tax levied for an illegal purpose, 2 It is the Tax Assessor's recommendation that the requested refund be denied. This recommendation is being made for several statutory reasons. First, appraiser judgment does not constitute an illegal tax. The Assessor has worked closely with the County Attorney in defining what can and what cannot be considered an illegal tax. 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 Assessor has worked closely with the County Attorney in defining what can and cannot be considered 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 keys two stories, when the appraiser indicated an 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 keys 2000 into the data entry area for fireplaces. Finally, the taxpayer has been notified at least twice each year as to the value of her property. She had the opportunity 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 she appealed timely., FINANCIAL IMPACT: Denial of this application far 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 $1,554.25 RECOMMENDATION(S): The Manager recommends that the Board approve the attached resolution denying one (1) property tax refund request in accordance with N.C. General Statute 105-381. NORTFI CAROLINA ORANGE COUNTY REFUND/RELEASE RESOLUTION (Denial) Whereas, North Carolina General Statutes 105-381 and/or .330_Z(B) allows for the refund and/or release of taxes when the Board of County Commissioners determines that a taxpayer applying for the refund/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 1S 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, 00 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 X006. Clerk to the Board of Commissioners NORTH CAROLINA ORANGE COUNTY REFUND/RELEASE RESOLUTION (Approval) Whereas, North Carolina General Statutes 105-38 i and/or .3.302(B) allows for the refund and/or release of taxes when the Board of County Commissioners determines that a taxpayer applying for the refund/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 approved, 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 X006. 4 Clerk to the Board of Commissioners ~,~ o ~~~-,a~ ~ ~~~~ a' To: Jolur Smith, Orange County Tax Assessor & p% \~ Judy Ryan, Assistant Assessor ~~~~ti'` ~._ From : N. Denise Brooks \ Re : Refiuzd Request on Tr~t'# 25438.3 /) ,: This is to request a refund ofproperty taxes. My doublewide manufactured home was erroneously being taxed as a stick-built home. This has been in effect since 1996 when the home was put on the property. My value has since been corrected, and I am now asking for relief and refired for this error. Thank you for your assistance. ~ ~~ N. Denise Brooks 1108 Lora Ann Drive Cedar Grove, NC 27231-9287 .. ~ ~ 1(iw °`re u'o`.e. ORANGE COIJNTY TAX OFFICE JOHN 8M11H, Jr. CAG 200 SOUTH CAMERON STREET JUDY RYAN ASSESSOR P.O. BOY 8181 DL•PUIY ASSESSOR HILLSBOROUGH, NORTH CAROLINA 27278 rELEPtIONE (919) 732-8181, Ext. 2100 , FAx 6J4-3U91 March 28, 2006 N. Denise Brooks 1108 Lora Ann Drive Cedar Grove, NC 27231-9287 RL: Tract # 25438.3 Refund Request Dear Ms.. Brooks: This letter is in reference to your correspondence received March 21, 2006 requesting a refund of taxes and is your notification of the 2006 valuation after review. North Carolina General Statute 105-381 allows for the refimd 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 firture years. In accord with these conclusions, I am enclosing a copy of your corrected 2006 property record card to assist you in determining that you are properly taxed now. Please review the property record card and let me know if there are any filrther changes or questions. If it would be heipfiil 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 successful. 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 funds. Due to this liability we are always careful and diligent in determining the legality of each refimd request. o t,~. ~,~,~,`, J Boazd of Equalization & Review P.O,Box 8181 Hillsborough, N. C, 27278 RE: Nancy Denise Brooks 1108 Lora Ann Dr. Cedar Grove, N. C. 27231 Tract # 254383 Refund Request To Whom It May Concern: For many years I have been paying on taxes based on $160,000.00 since 1997. The taxes were based on a stick built house. I have a double wide., I stayed behind in my taxes and it was a struggle to pay my house payments. The payments went from $750..00 to $1052.45 because I had made payment azrangements with the tax office to pay so much a month, I had paid as agreed: I went to make a payment one day and I was told at the tax office that Country Wide had paid the taxes in full. It has really put a hardship on me because I am a contractor and some times I don't get paid for 30 to 45 days, Prior to making arrangements with the tax office, I would ask why my taxes are so high and I was always told that they were correct. From $160,000.00 to $106,000.00 is a lot of money.. I have enclosed a letter from Ms .Ludy Ryan that said it would be against the law to refund me any of the monies, I don't understand. If I had not paid the monies based on $160,000.00 my house would have been taken by the tax off ce. I just want to be able to get some of the money so that I can apply it to my house payment and get the payment back to $750.00 or lower, Please see if there is anything you can do to help me. Thank you very much. ~J cy Denise Brooks r ,~ ~~. _(~ ~~4J~-1 1108 Lora Ann Drive Cedar Grove, N. C. 27231 (APR ,~~ 7.32-4633 I~~NWOtlU~~ ~DD nb-ata hf4"~ g~rr ,nrz a ~^ o, ti„~e• , "e c.<>" ORANGE COUNTY TAX OFFICE JOHN SMIl lf, Jr, CAE ASSESSOR 200 SOUTH CAMERON STREET P.O. BOX 8181 HILLSBOROUGH, NORTH CAROLINA 27278 TELEPHONE (919) 732-St81, Ext. 2100, RAX 644-3D9t April 28, 2006 Nancy Denise Brooks 1108 Lora Ann Drive Cedar Grove, NC 27231-9287 RE: Tract # 254383 Refund RequesUAppeal to Board of Equalization and Review Dear Ms. Brooks: This letter is in reference to your correspondence received April 26, 2006 requesting an appearance before the Board of Equalization and Review concerning a refund denial.. JUDY RYAN DEPUTY ASSESSOR The Board of Equalization and Review is a panel selected by the Board of County Commissioners to hear valuation appeals. That panel has no authority to authorize a refund. The Board of County Commissioners has the sole auNJOrity to approve or deny a refund request, If you wish to proceed with a request for refund, I will submit documentation to the Board of County Commissioners at their meeting on .Tune 13, 2006. As stated in my previous Letter, if the commissioners were to make a refund not authorized by the statutes, those commissioners individually become personally liable for those improperly refunded funds. It is my belief that a refund is not warranted in this situation.. Therefore, my recommendation to the Board would be to deny this request. If; however, you have a 2006 valuation appeal, I would be happy to schedule a date and time for you to appear and present documentation to support your appeah Please let me know your wishes at your earliest convenience. Sincerely, 8 .Judy Ryan Deputy Assessor f On the basis of our findings, a refund is not authorized render NC CS 105-381and could not be recommended to the county commissioners for approval. However, you do have thinly (30) days from the above date on this letter to appeal the 2006 valuation as indicated on the enclosed property record card. If you wish to appeal you must make written request to the Board of Equalization and Review, PO Box 8181, 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