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HomeMy WebLinkAboutAgenda - 11-21-2000-8e~- ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 21, 2000 Action Agenda Item No. ~ _ ~ _ SUBJECT: Request to Release Two Land-Use Deferred Tax Notices DEPARTMENT: Tax Assessor PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: John Smith, ext 2101 Resolution Petition Letter from Mr. David L. McBroom TELEPHONE. NUMBERS: Letter from Geoff Gledhill Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To request release of 2000 Land-Use Deferred Tax Notices on two tracts of land. Tract # 502977 and tract # 503159. BACKGROUND: North Carolina General Statute 105-312 authorizes the Board of County Commissioners to, upon the petition of the taxpayer, compromise, settle or adjust the County's claim for taxes arising from discoveries, such as deferred taxes. Mr. McBroom has petitioned for release of two 2000 Deferred Land-Use Tax Notices. (See the attached request from Mr. McBroom and the documentation from the county attorney.) Mr. McBroom was not properly informed by the tax office on how to qualify these two tracts in 1988 which resulted in these deferred bill discoveries. Therefore, Mr. McBroom finds himself owing these deferred bills at no fault of his own. Therefore, the Tax Office recommends the BOCC approve the release of these two deferred tax bills. The Assessor has confirmed that the two tracts being released are adjacent to a larger qualifying tract and all three are used far pasturing farm animals and do qualify for the Use Program. FINANCIAL IMPACT: Approval of these changes will decrease assessed value by $58,512 for tax years 1997, 1998, and 1999. This will result in a net decrease in revenue of $ 1,362.95 to the County, municipalities, and special districts. RECOMMENDATION: The County Manager recommends that the Board approve Mr. McBroom's request to release the two deferred Land Use Tax Notices. NORTH CAROLINA ORANGE COUNTY EXEMPT STATUS RESOLUTION Whereas, North Carolina General Statutes 105-312 authorizes the Board of County Commissioners to, upon petition of the taxpayer, compromise settle or adjust the county's claim for taxes arising from a discovery, and . Whereas, the taxpayer has petitioned for release, and Whereas, the Assessor has determined there are extenuating circumstances, nat ,under control of the taxpayer, and therefore there are grounds far compromise. NOW, THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF ORANGE COUNTY THAT deferred bills petitioned for release are released to reflect the compromise of these taxes as authorized by NCGS 105-312. Upon motion duly made and seconded, the foregoing resolution was passed by the following votes: Ayes: Cornnnissioners Noes: I, Beverly A. Blythe, Clerk to the Board of Commissioners for the County of Orange, North Carolina, DO HEREBY CBRTIFY 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 , 2000. 2 Clerk to the Board of Commissioners 3 Orange County Tax Office P.O. Box 8181 Hillsborough, N.C. 27278 August 21, 2000 Mr. John Smith, Jr. Mr. John Link Mr. Greg Hill Orange County Commissioners Gentlemen: On June 7, 1985 Tract #500272 was deeded into the name of Gracie R. Garrard and David L. McBroom. At that time I checked with Orange County tax office about putting this tract of land under farm use. The tax office said I met the qualifications to do this, and they also told me the other two tracts of land (Tract' #502977 and 503159) qualified because they adjoined the larger tract of land. My name, David L. McBroom, was on both the other two tracts- On October 6, 1999 my Aunt, Gracie R. Garrard, had heart failure and was admitted to the hospital. On October 11, 1999 I received a letter from Teresa Moore about the two smaller tracts of land no longer qualified for farm use unless all three deeds matched.. At that tame, I went and talked with Mrs. Moore. She said the tax office would work with me as much as possible. I talked to her several times after and also talked to the attorneys' office of Coleman, Gladhill, and Hargrave. When I explained my Aunt had had, by the end of October, two heart failures and a stroke, Mr. Coleman suggested not doing anything at that time. On March 17,2000 I got a threatening farm letter from Jo Roberson that my tax was delinquent. I then contacted John Link about who I needed to talk with , and I carried him copies of my paid taxes. Mr. Link told me I needed to talk to Jahn Smith of the Orange County tax office. When I talked to Mr. Smith about my situation with my Aunt, he told me the deadline on this new tax bill I had received would not be recognized and to keep him informed if I could get the deed titles changed. And if I could, he would see if we could delete this bill since the laws had changed and I could not work in the time frame they had set because of my Aunt's health. On June 27,2000 I was able to change the deed from Gracie R. Garrard and David L. McBroom to David L. and Robin Jackson McBroom, which is the same as the other two smaller tracts of land mentioned above. At that time I went to see Mr Smith, but he was not in his office, so I returned to Teresa Moore's office and gave her the information.. I regested then that all the land be kept in farm use as it had always been before. 4 On July 31,2000 I received a new letter from Mr. Smith saying that within legal rights I need to petition the Orange County Commissioners for relief from these tax bills. On August 11,2000 I received the new tax bills for this year and the larger tract of land was billed under farm use...But as you can guess, the smaller two tracts of land were not billed under farm use as it has always been, but under the mare expensive rate, On August 14,2000 I called Teresa Moore again about these new tax bills and she informed me she had taken care of my application on June 27th to keep the land under farm use. As per Mr. Smith, I am requesting to be relieved from the new tax bills I was sent last year prorating my taxes from the last three yeazs from farm use to regular use and to please change the . smaller two tracts of land back to farm use since I have been able to comply with the rule change of the county and state. Sincerely, David L. McBronm 5 LAW ()FF1CF$ Co1.~MAN, GI~D~IILL & HARGRAV~ A PROFES5IDNAL C'.URR)MTI~)N 129E TRYON 57REE7 (>. 134A~YEA 1529 HILLSADADUGH. NUitTH ('AM()llNA :7278 910.7.)1 2196 FAX 919.732.7997 wEast7e www t:nANnH.C.OM October 12, 2000 Mr. John Smith Orange County Tax Assessor Fost Office Sox 8181 Hillsborough, North Carolina 2727A RB: David McBroom Tax Questiane Dear John: FRAM 71iE DESK OF GFAFFREY ~. G1EDF9ILL This letter confirms our telephone conversation on October 11, 2000 and provides .you my opinion about the remedies available for handling' Che McBroom tax mattex. My opinion is based on the following facts: 1. Prior to June 2000, Mr. McHroom and his mother, Mrs. Garrard, owned an approximately 2A acre piece of land that qualified for and was in the use value Cax pxogram. 2. Prior to the yeax 2000, Mr. MCHroom and his wide Robin also owned a 2 acre tract of land and a 3.6 acre tract of land that were in the use value tax program but because the ownership was not identical to the 28 acre tract those tracts did not qualify far use value taxation. 3. In October 1999 the errox' in classifying the 2 acre tract and the 3.6 acre tract for use value taxation was discovered. In the year 2000 the discovery of the previous classification error resulted in a "discovery" process pursuant to G.S. § 105-312 effective with the tax year 2D00. The Tax Collector received a receipt for the market value taxes fox Chose two parcels of land for the year 2000 and for deferred taxes plus interest far the 3 prior years, 1999, 1998 and 1997, 4. The ownership of the 28 acre parcel of land was changed in June 2000. Some time on ar before June 27, 2000 a deed to that property was recorded showing Che ownership of it to be Mr. McBroom and hie wife, Robin. 6 Mr. John Smith Page 2 October 12, 2D00 5. Your office received an application from Mr. and Mrs. McBroom for use value for the. 28 acres f.or the year 2001, an application made necessary by the change in ownership of that property on or before June 27, 2000. 6. No application for use value has been made for the 2 acre and the 3.6 acre parcels of land. Based an the above facts it is my opinion that an application for use value ,fox the 2 acre tract and the 3.6 acre tract to be combined with the 28 acre tract can qualify all 3 tracts for use value, assuming other use value requirements axe rnet by the combined tracts. It is further my opinion that the deferred taxes plus interest due on the 2 acre and 3.6 acre tracts far the years 1997, 1998 and 1999, pursuant to G.S. § 105-277.9 (which calls for the collection of deferred taxes for 3 years immediately preceding a disqualification), can be "compromised" by the Grange County Board of County Commissioners pursuant to G.S. § 105-312(k). That is, the error in the use value classification of the property resulted in "discovered property," under N.C. Gen. Stat. § 105-312, in an amount equal tO the difference between the use value and the market value. Subsection (k) of G.S. § 105-312 authorizes the Board of County Commissioners to, upon the petition of the taxpayer, Compromise, settle ox adjust the County's claim for taxes arising from the discovery, The taxes for the 2. acre and 3.6 year 2000 must be calculated based on tracts. That is because the property value taxation for the year 2000 thus reasonable basis for compromising the bill. acre tract of land for the the market value of those did not qualify for use I can think of no year 2000 market value tax Tf you have any questions about any of this, please call. Very truly yours, GEG/lsg ~~y~7c~tere\em1[hmAAroom..~.n CaLEM~N, C3LEbHILL ~ H1IRGRAVE, P.G. ,.~eaffrey , Gle hill i -