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Home My WebLink AboutAgenda - 12-04-2017 - 8-c - Property Tax Releases Refunds 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 4, 2017 Action Agenda Item No. 8-c SUBJECT: Property Tax Releases/Refunds DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Resolution Dwane Brinson, Tax Administrator, Releases/Refunds Data Spreadsheet (919) 245-2726 PURPOSE: To consider adoption of a resolution to release property tax values for twenty-four (24) taxpayers with a total of twenty-seven (27) bills that will result in a reduction of revenue. BACKGROUND: The Tax Administration Office has received twenty-four (24) taxpayer requests for release or refund of property taxes. 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. FINANCIAL IMPACT: Approval of this change will result in a net reduction in revenue of $128,690.42 to the County, municipalities, and special districts. The Tax Assessor recognized that refunds could impact the budget and accounted for these in the annual budget projections. 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 approving these property tax release/refund requests in accordance with North Carolina General Statute 105-381. 2 NORTH CAROLINA RES-2017-078 ORANGE COUNTY REFUND/RELEASE RESOLUTION(Approval) 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 the release/refund 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 not 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 or release of the tax imposed and has 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 recommended 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 ,2017. Clerk to the Board of Commissioners 3 Clerical error G.S.105-381(a)(1)(a) BOCC REPORT - REAL/PERSONAL Illegal tax G.S.105-381(a)(1)(b) Appraisal appeal G.S.105-330.2(b) DECEMBER 4, 2017 ACCOUNT BILLIN ORIGINAL ADJUSTED FINANCIAL NAME NUMBER G YEAR VALUE VALUE IMPACT REASON FOR ADJUSTMENT ADDITIONAL INFORMATION Agatucci,Kimberly 285540 2017 1,057,500 983,400 (1,146.71) Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. AKG North America Inc. 250142 2017 14,295,600 12,964,300 17,409.41 Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Blue Heel Ramsley LLC 1061743 2017 247,000 165,500 (1,261.21) Incorrect value(clerical error) Value adjusted due to property being affordable housing. Blue Heel Ramsley LLC 1061744 2017 247,000 165,500 1,261.21 Incorrect value clerical error Value adjusted due to property being affordable housing. Application for homestead exemption received timely,but supporting documentation needed to approve application was received after bill Brown,Lauren Bowers 69450 2017 710,100 455,850 2,895.65 Incorrect value clerical error created. Building value was picked up in the business listing in error.Was also listed Compton Farm Inc. 212713 2017 193,220 164,393 264.83 Double billed clerical error and billed with real property. Daniels,Richard H.Sr. 1061617 2017 43,200 - (391.18) Illegal tax(clerical error) Parcel billed in error.Inactivated/closed for 2015 tax year. Elam,Mala C. 208092 2017 362,900 345,200 (201.12) Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. FPP 128 LLC 952876 2017 1,214,600 875,200 (4,947.43) Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. FPP 128 LLC 156313 2017 539,800 343,200 2,865.83 Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Garrett,Delbert W. 246063 2017 155,100 139,800 (141.45) Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Leasehold improvements were listed on property owner account in error. Leasehold improvements also listed as personal property by tenant,which Glen Lennox Shopping CTR LLC 104883 2017 759,756 33,104 (11,244.95) Double billed(clerical error) is in accordance with the Schedules of Value. KIWA LLC 189279 2017 10,177,700 5,842,900 67,081.03 Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Lassiter,Elizabeth A. 309697 2017 244,000 216,300 (314.76) Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Lawton,Thomas S. 182074 2017 474,100 386,500 (833.42) Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Main Street Properties of Chapel Hill LLC 1051051 2017 3,074,900 2,480,900 (9,675.67) Incorrect value(clerical error) 'Value was changed during appeal period but bill did not reflect change. Manhard,Patrick 988048 2017 178,100 171,600 105.88 Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Martin,Cathy R. 315636 2017 294,500 253,300 600.57 Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Meshad,John W.Trustee 309755 2017 203,200 180,400 352.84 Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Nickell,Deborah B. 268754 2017 606,100 535,700 (1,089.44) Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Nickens,Charles Shelton 261183 2017 174,600 138,200 592.93 Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Norwood,Harvey J.Trustee 161733 2017 154,800 139,000 (257.37) Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Parrish,Douglas A. 305868 2017 207,300 194,100 204.27 Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Land value erroneously left off of in the original calculation of the exemption.Circurit Breaker tax deferral is based on income and not value, however the full value is necessary to determine the correct amount to Rickman,Bethanie Smith 69668 2017 210,800 210,800 (500.00) Incorrect value(clerical error) defer. Tea Flower Research 293754 2017 277,7001 249,900 452.83 Incorrect value clerical error 'Value was changed during appeal period but bill did not reflect change. Appraisal coding error caused some land not to be valued at the Wade,Jerry L Trustee 271032 2017 141,814 13,174 (1,181.82) Incorrect value clerical error appropriate present use value. Appraisal coding error caused some land not to be valued at the Wade,Jerry L Trustee 270605 2017 177,494 23,297 (1,416.61) Incorrect value clerical error appropriate present use value. Total (128,690.42) There are 18 releases that are the result of informal appeal adjustments that did not carry through during the original billing process and were recently discovered as being billed at an incorrect value.The total financial impact for just these bills is$108,272.96. The spreadsheet represents the financial impact that approval of the requested release or refund would have on the principal amount of taxes. Approval of the release or refund of the principal tax amount also constitutes approval of the release or refund of all associated interest,penalties,fees,and costs appurtenant to the released or refunded principal tax amount. October 12, 2017 thru November 14, 2017