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HomeMy WebLinkAbout8-d - Applications for Property Tax Exemption Exclusion ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 23, 2018 Action Agenda Item No. 8-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 nine untimely applications for exemption/exclusion from ad valorem taxation for nine bills for the 2017 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. Seven 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. Two of the applicants are applying for exemption based on NCGS 105-278.7 which allows for an exemption from property taxes for property used for educational, scientific, literary or charitable purposes. Including these nine applications, the Board will have considered a total of forty-five (45) untimely applications for exemption of 2017 taxes since the 2017 Board of Equalization and Review adjourned on June 29, 2017. Taxpayers may submit an untimely application for exemption of 2017 taxes to the Board of Commissioners through December 31, 2017. 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. 1 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 2017/2018 taxes due to the County, municipalities, and special districts in the amount of $52,682.18. 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 2017/2018 exemption. 2 NORTH CAROLINA RES-2018-003 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 2017 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 2017 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 ____________, 2018. _________________________________ Clerk to the Board of Commissioners 3 Late exemption/exclusion application - GS 105-282.1(a1)BOCC REPORT - REAL/PERSONAL JANUARY 23, 2018 November 15, 2017 thru January 5, 2018 NAME ACCOUNT NUMBER BILL YEAR ORIGINAL VALUE TAXABLE VALUE FINANCIAL IMPACT REASON FOR ADJUSTMENT Briggs, Joyce Marie 1053641 2017 60,900 30,450 (282.94) Late application for exemption G.S. 105-277.1 (Homestead Exemption) Chapel Hill Carrboro Childrens Museum DBA Kidzu 1066114 2017 159,926 0 (2,474.85) Late application for exemption G.S. 105-278.7 (Other charitable, educational, etc.) Coble, Robbie 3203 2017 105,500 52,750 (477.65) Late application for exemption G.S. 105-277.1 (Homestead Exemption) Duke University School of Foresty 1061857 2017 4,762,100 0 (44,249.43) Late application for exemption G.S. 105-278.7 (Other charitable, educational, etc.) Gross, Kathy 298613 2017 95,300 55,556 (369.30) Late application for exemption G.S. 105-277.1 (Homestead Exemption) Groves, Michael 162292 2017 202,500 101,250 (1,566.84) Late application for exemption G.S. 105-277.1 (Homestead Exemption) Hallaman, Fred C.180626 2017 49,100 24,100 (231.12) Late application for exemption G.S. 105-277.1 (Homestead Exemption) Lowrey Jr., Herbert 192519 2017 360,600 180,300 (2,143.04) Late application for exemption G.S. 105-277.1 (Homestead Exemption) Taylor, Billie R Parker 239415 2017 121,700 60,850 (887.01) Late application for exemption G.S. 105-277.1 (Homestead Exemption) (52,682.18) 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. 4 5 6 7 8 9 10 11 12 13