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HomeMy WebLinkAboutAgenda - 12-03-2018 8-c - Property Tax Releases Refunds 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 3, 2018 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 twelve taxpayers with a total of seventeen bills that will result in a reduction of revenue. BACKGROUND: The Tax Administration Office has received twelve 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 $244,255.55 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. It should be noted that included in the financial impact total is a release for $127,108.44 that takes the place of a Board-approved release in the amount of $199,057.09 included on the November 1, 2018 Real and Personal Report. The release amount was recorded incorrectly on the November 1, 2018 report. This December 3, 2018 report rescinds the approval of the incorrect November 1St amount and approves the correct release amount. 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-2018-079 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 ,2018. Clerk to the Board of Commissioners 3 Clerical error G.S.105-381(a)(1)(a) BOCC REPORT- REAL/PERSONAL Illegal Appraisal appeal G.S. 05-3 0. DECEMBER 3, 2018 Appraisal appeal G.S.105-330.2(b) ACCOUNT BILLING ORIGINAL ADJUSTED FINANCIAL NAME NUMBER YEAR VALUE VALUE IMPACT REASON FOR ADJUSTMENT ADDITIONAL INFORMATION Gap billing:vehicle registered in PA for most of the billed gap period,nubmer Abdo,Devon Lehn 1068149 2017 9,810 9,810 (350.97) Assessed in error(illegal tax) of months billed lowered from 26 to 3 Approving this release will rescind the approval from the November 1st Armacell 248227 2017 24,941,923 15,221,923 (127,108.44) Incorrect value(clerical error) request for$199,057.09.The release amount was incorrect. Bartlett,Derek 1073320 2018 11,750 (386.82) Assessed in error(illegal tax) Gap billing:vehicle registered in CA during gap period Central Baptist Church of Efland 1061606 2018 761,600 (6,993.01) Assessed in error(illegal tax) *Exempt property billed in error(G.S.105-278.3 Religious Purpose) Coates,Richard A. 1071456 2018 12,610 (430.83) Assessed in error(illegal tax) Gap billing:vehicle located in Durham County Value overstated due to standard 3%physical depreciation for 2017 residence Dawson,Alexander III 1061603 2018 531,300 518,200 (120.28) Incorrect value(clerical error) not being calculated Frazier,Annie Laura 1072454 2018 19,350 - (738.95) Assessed in error(illegal tax) Gap billing:vehicle registered in KY during gap period Johnston,Brian Charles 1057785 2018 14,650 (254.65) Assessed in error illegal tax) Personal property located in Vance County Johnston,Brian Charles 1057785 20171 14,650 (226.70)1 Assessed in error(illegal tax) Personal property located in Vance County Johnston,Brian Charles 1057785 2016 15,210 (244.94) Assessed in error illegal tax) Personal property located in Vance County Raines,Elizabeth 1072877 2018 2,590 (145.99) Assessed in error(illegal tax) Gap billing:vehicle registered in RI during gap period Royce,Trevor 1072382 2018 2,260 (139.87) Assessed in error(illegal tax) Gap billing:vehicle registered in MA during gap period Thompson,Clyde Heirs 162180 2018 135,200 97,700 (433.20) Double billed(illegal tax) Home was correctly billed on account 52797 Thompson,Clyde Heirs 162180 2017 145,000 97,700 (540.40) Double billed(illegal tax) Home was correctly billed on account 52797 University of NC Health Care System 197041 2018 543,400 (5,238.92) Assessed in error(illegal tax)*Exempt property billed in error(G.S.105-278.8 Charitable Hospital Purposes) University of NC Health Care System 197040 2018 594,100 (5,727.72) Assessed in error(illegal tax)*Exempt property billed in error(G.S.105-278.8 Charitable Hospital Purposes) University of NC Health Care System 224021 2018 6,022,900 (95,173.86) Assessed in error(illegal tax)*Exempt property billed in error(G.S.105-278.8 Charitable Hospital Purposes Total (244,255.55) 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. *These properties were previously exempt,but due to a change in our billing process these were either billed in error,or were assessed at full value in error. October 12,2018 thru November 13,2018