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HomeMy WebLinkAboutAgenda - 03-07-2019 8-d - Applications for Property Tax Exemption Exclusion 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 7, 2019 Action Agenda Item No. 8-d SUBJECT: Applications for Property Tax Exemption/Exclusion DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Exempt Status Resolution Dwane Brinson, Tax Administrator, Spreadsheet (919) 245-2726 Requests for Exemption/Exclusion PURPOSE: To consider three untimely applications for exemption/exclusion from ad valorem taxation for three bills for the 2018 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 1S` 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. Two 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. One of the applicants is applying for exclusion based on NCGS 105-278, which allows for an exclusion of real property designated as a historic property by a local ordinance adopted pursuant to former G.S 160A-399.4 or designated as a historical landmark by a local ordinance adopted pursuant to G.S. 160A-400.5. This is a designation for a special class of property under authority of Article V, Sec. 2(2) of the North Carolina Constitution. Including these three applications, the Board will have considered a total of sixty-three (63) untimely applications for exemption of 2018 taxes since the 2018 Board of Equalization and Review adjourned on June 14, 2018. Taxpayers may submit an untimely application for exemption of 2018 taxes to the Board of Commissioners through December 31, 2018. 2 Based on the information supplied in the application and based on the above-referenced General Statutes, the application may be approved by the Board of County Commissioners. 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 2018/2019 taxes due to the County, municipalities, and special districts in the amount of $10,083.80. 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 2018/2019 exemption. 3 NORTH CAROLINA RES-2019-014 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 2018 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 2018 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 2019. Clerk to the Board of Commissioners 4 Late exemption/exclusion application -GS 105-282.1(a1) BOCC REPORT - REAL/PERSONAL LATE EXEMPTION/ EXCLUSION MARCH 7, 2019 ACCOUNT BILL ORIGINAL TAXABLE FINANCIAL NAME NUMBER YEAR VALUE VALUE IMPACT REASON FOR ADJUSTMENT Colliot, Pamela Addison 74635 2018 123,800 61,900 (586.32) Late application for exemption G.S. 105-277.1 (Homestead Exemption) Gorgon's Head Lodge Inc. 282947 2018 1,124,100 562,050 (8,881.51) Late application for exemption G.S. 105-278(Historic property) Oldham, Sam 1058306 2018 143,900 76,815 (615.97) Late application for exemption G.S. 105-277.1 (Homestead Exemption) (10,083.80) Total "Circuit Breaker does not result in a reduction in value.The exemption received is based on the income of the taxpayer. 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. January 17, 2019 thru February 13, 2019 FILIED 5 FEB 1 zags ORANGE COI NIT TAX ADMINISTRATION Request for Approval of ; Property tax Exemption, Exclusion or Deferral Due to Showing of Good Cause for Failure to Make a Timely Application Date• OZ/ I� I�'I To Whorn it May'Concernd Ir�1Ri\T R�MEF , s wish to be considered for Property Tax Exemption, xcelusion or Deferral for the'tix'.year ` D on Tax Abstract or Parcel Identification Number(s)(PIN)8 �(��!l � Please note that the deadline to submit a timely application Deadline is June 1st of the tax year. in accordance with North Carolina General Statute 105-282J(al);1 submit the reason(s)set forth below for consideration as demonstration or good cause for failure-to make a`timely application. An untimely application approved under G.S. 105.282.1- (al)applies only to the.property taxes levied by the county or municipality in theealendar,rear imNhich the untimely, application is AW. If`additlonai space for explanation is needed.please submit an attachment with this request. Please explain': } How did`you find out about the progesm(s)? QjQOqke Thank you, (Signature) Y -FYLF,DEC 2 7 201� SEC ORAN pgAN� �gp�OP1 3 �/h �ni�\��6 TOADTAXAD A' TI Request for Approval of Property Tax Exemption, Exclusion or Deferral Due to Showing of Good Cause for Failure to Make a Timely Application Date: 12.27.18 To«'hom It May Concern: Joseph Spencer Merritt, GORGONS HEAD LODGE INC. PRESIDENT I,(PRIINT NAME)_ wish to be considered for Property Tax Exemption,Exclusion or Deferral for the tax year 2018 on Tax Abstract or Parcel Identification Number(s)(PIN")# 9788782810 In accordance with North Carolina General Statute I05-282.l(al),I submit the reason(s)set forth below for consideration as demonstration of good cause for failure to make a timely application. An untimely application approved under G.S. IOS-282.1 (at)applies only to the property taxes levied by the county or municipality in the calendar year in which the untimely application is riled. If additional space for explanation is needed,please submit an attachment with this request. Please explain: Please see Attachment Tax Professional How did you find out about the program(s)? Thank you, (Signature) 7 Gorgon's Head Lodge, Inc. 711 East Franklin Street Chapel Hill, NC 27514 The following attachments are supplements to the preceding documents. The Gorgon's Head Lodge is making an application for both an exemption of property taxes under GS 105-275(19). Attachment: Late Application The purpose of this attachment to the late business tax exemption application is to explain why the application is late for tax year 2018. The Gorgon's Head Lodge received a letter on February 8, 2018 indicating that the structure was now considered a contributing structure to the Franklin-Rosemary Historic District and may be eligible for tax benefits (Exhibit 1). After consulting with our tax professional during the preparation of the 2017 Form 990 submitted 11.15.18(Exhibit 2),the Lodge decided to submit this appeal for the tax year 2017. We will be submitting an appeal for 2019 in January 2019 as well, in the event this application is not accepted for 2018. Attachment: NC Form AV-10 The purpose of this attachment to NC Form AV-10 is to provide supplementary documentation supporting the case for the Gorgon's Head Lodge located at 711 East Franklin Street to be granted a property tax exemption under NC 105-275.(19) (text below). (19)Real and personal property belonging to the Loyal Order of Moose,the Benevolent and Protective Order of Elks,the Knights of Pythias, the Odd Fellows, the Woodmen of the World, and similar fraternal or civic orders and organizations operated for nonprofit benevolent,patriotic, historical,charitable,or civic purposes, when used exclusively for meeting or lodge purposes by the organization, together with as much additional adjacent real property as may be necessary for the convenient normal use of the buildings.Notwithstanding the exclusive-use requirement of this subdivision,if a part of a property that otherwise meets this subdivision's requirements is used for a purpose that would require that it not be listed, appraised, assessed, or taxed if the entire property were so used, that part,according to its value,shall not be listed,appraised,assessed,or taxed. The fact that a building or facility is incidentally available to and patronized by the general public, so for as there is no material amount of business or patronage with the general public, shall not defeat the classification granted by this section. Nothing in this subdivision shall be construed so as to include social fraternities, sororities, and similar college, university, or high school organizations in the classification for exclusion from ad valorem taxes. (19a)Improvements to real property that are(i)owned by social fraternities,sororities, and similar college, university, or high school organizations and(ii)located on land owned by or allocated to The University of North Carolina or one if its constituent institutions. As stated in part 1.1 of the attached 990 for the Gorgon's Head Lodge (Exhibit 2), the organization's mission is "to give permanence to a social club composed primarily of students of the University of North Carolina and to preserve club assets." The primary purpose of the organization is to preserve the historic structure and surrounding land located 711 East Franklin Street operating for nonprofit benevolent and historical purposes exclusively for meeting purposes. The historic structure at 711 E. Franklin was built in 1923 and was recently added as a "contributing" structure to the Franklin- Rosemary Historic District in Chapel Hill, NC(Exhibit 1). It has been used continuously and exclusively as a meeting place for the Gorgon's Head Lodge since its construction. The club is not a social fraternity, has no residential component, and is in no way affiliated with the University of North Carolina and resides on property that is owned by the Club as evidenced by the attached property tax bill (Exhibit 3). In addition the club is not comprised solely of University students; 8 Gorgon's Head Lodge, Inc. 711 East Franklin Street Chapel Hill, NC 27514 membership currently includes and historically has included members that are not University students. The property is not used for business or patronage purposes with the general public. Exhibit 4 is the tax bill for the masonic lodge located at 700 W. Rosemary St. Carrboro, NC. This organization pays no property taxes and has an identical use to the subject property located at 711 E. Franklin Street. --------- u �z DEC- 201� ORANGE TV Cou � �brlG coo���`s TAXADl1IINIS NT Request for Approval of Property Tax Exemption, Exclusion or Deferral Due to Showing of Good Cause for Failure to Make a Timely Application • i Date: 1--) - i To Whom It May Concern: I,(,.,MNAIM Sam O ki har'— ,wish to be considered for Property Tax Exemption,Exclusion or Deferral for the tax year roZA b on Tag Abstract or Parcel Identification-Numbers)(PIN )# . Please note that the deadline to subunit a timely application Deadline is June 1st of the tax year. qO&L-/Xl�gl3�Ql . In accordance with North Carolina General Statute 105 282.1(a1),I submit the reason(s)set forth below for consideration as demonstration of good cause for failure to make a timely application. An untimely application approved under G.S.105-282.1 (a1)applies only to the property taxes levied by the county or municipality,in the calendar year in which the untimely application is Sled. H additional space for explanation is needed,-please submit an attachment with this request Please explain: vi { How did you find out about the program(s)T � 1f ii wOC�[ ©�[a►d�t� 1 Thank you, f (Signature)