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HomeMy WebLinkAboutAgenda 10-01-19 Item 8-c - Property Tax Releases Refunds 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 1, 2019 Action Agenda Item No. 8-c SUBJECT: Property Tax Releases/Refunds DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Resolution Nancy T. Freeman, Tax Administrator, Releases/Refunds Data Spreadsheet (919) 245-2735 PURPOSE: To consider adoption of a resolution to release property tax values for sixteen taxpayers with a total of thirty-eight bills that will result in a reduction of revenue. BACKGROUND: The Tax Administration Office has received sixteen 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 $212,772.10 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. ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility 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-2019-061 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 ,2019. 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) OCTOBER 1, 2019 ACCOUNT BILLING ORIGINAL ADJUSTED FINANCIAL NAME NUMBER YEAR VALUE VALUE IMPACT REASON FOR ADJUSTMENT ADDITIONAL INFORMATION 16 Parkside Lane LLC 3175842 2019 122,100 717 (1,381.10) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175844 2019 113,800 668 (1,287.22) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175845 2019 127,400 772 (1,440.77) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175847 2019 126,400 705 (1,430.16) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175733 2019 153,800 1,167 (1,736.66) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175843 2019 129,500 1,372 (1,457.84) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175840 2019 144,900 1,659 (1,629.80) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175832 2019 163,700 1,992 (1,839.91) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175830 2019 174,500 1,604 (1,967.21) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175831 2019 140,400 786 (1,588.53) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175836 2019 89,700 426 (1,015.76) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175833 2019 147,100 1,184 (1,660.23) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175828 2019 148,500 1,635 (1,671.03) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175824 2019 166,600 1,518 (1,878.30) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175825 2019 157,000 1,295 (1,771.61) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175826 2019 109,100 1,063 (1,229.24) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175827 2019 109,100 1,063 (1,229.24) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application 16 Parkside Lane LLC 3175835 2019 106,000 586 (1,199.40) Incorrect value(clerical error) *Present Use Value approved for 2019 from timely filed application Adcock,Bruce C. 315189 2019 18,000 (172.69) Incorrect value(clerical error) Land value was not included in homestead exemption Betts,Celia Ines Caputo 3178653 2019 10,480 (349.84) Assessed in error(illegal tax) Gap bill:vehicle registered in Maryland during gap period Blue Stripes LLC dba Silverspot Cinema 1057995 2018 7,067,969 3,527,189 (55,951.41) Double billed(illegal tax) Also billed on account 304110 Blue Stripes LLC dba Silverspot Cinema 1057995 2018-2017 5,382,725 1,633,943 (58,012.40) Double billed(illegal tax) Also billed on account 304110 Blue Stripes LLC dba Silverspot Cinema 1057995 2018-2016 5,493,297 1,631,252 (62,194.37) Double billed(illegal tax) Also billed on account 304110 Assessed value to be reduced to the initial investment basis per G.S.105-277.17 for Community Home Trust 263801 2019 156,300 89,000 1,086.02 Incorrect value clerical error Community Home Trust Elkins,Catherine Jill 3180332 2019 5,850 (330.09) Assessed in error(illegal tax) Gap bill:vehicle registered in Maryland during gap period Federspiel,Jerome Jeffrey 3180452 2019 7,380 (377.12) Assessed in error(illegal tax) Gap bill:vehicle registered in Maryland during gap period Gap bill:vehicle registered during stated gap period;taxpayer transferred license plates Glosson Jr,Robert Clifford 1075356 2018 30,340 416.31 Assessed in error(illegal tax between similar vehicles triggering a gap in registration being reported. Double billed(illegal tax) Business listed lease hold improvements that were listed on parcel 9788278230(exempt Hodge&Kittrell Inc. 1067070 2019 154,956 102,926 963.65) Town of Chapel Hill parcel) JustMeag Inc dba Steves Garden Market&Butchery 1073120 2019 142,530 66,976 (1,236.59) Value adjustment(appraisal appeal) Business listed full purchase price instead of historical cost of equipment MacAller,Timothy J. 124346 2019 197,113 183,316 (127.91) Incorrect value(clerical error) Incorrect Present Use Value was used as basis for bill Miles,John Michael 3178731 2019 9,560 (252.65) Assessed in error(illegal tax) Gap billing:vehicle located in Chatham County Parker,Thomas W. 224791 2019 32,673 25,240 (70.53) Incorrect value(clerical error) Incorrect Present Use Value was used as basis for bill Scarlett,Mary W. 1005209 2019 450,800 372,921 (722.02) Assessed in error(illegal tax) Present Use Value reapplied to property after owners proved evidence of compliance Previously disqualified from present-use value program,evidence of compliance produced, Scarlett,Mary W. 1005209 2018 450,804 N/A 754.48 Assessed in error(illegal tax necessitating reversal of deferred tax bill Previously disqualified from present-use value program,evidence of compliance produced, Scarlett,Mary W. 1005209 2017 450,804 N/A 797.82 Assessed in error(illegal tax necessitating reversal of deferred tax bill Previously disqualified from present-use value program,evidence of compliance produced, Scarlett,Mary W. 1005209 2016 450,804 N/A 814.49 Assessed in error(illegal tax necessitating reversal of deferred tax bill Teapole,Brianna Rebecca 3178677 2019 8,290 (112.68) Assessed in error(illegal tax) Gap bill:vehicle registered in South Carolina during gap period Tomasi,Luca Guglielmini 3176374 2018 19,460 (615.02) Assessed in error(illegal tax) Gap bill:vehicle registered in Pennsylvania during gap period Total (212,772.10) *16 Parkside Lane LLC was originally a 92.5 acre parcel located in rural area of the Chapel Hill township that had been in agricultural and forestry use for several years.It was split into multiple parcels for 2019,and a portion of the parcel was taken out of the present use value program.Although the remainder would still qualifi for the pro ram,these changes made it necessary for the submission of new applications in order to continue in the program,and the applications were not fully processed prior to 2019 billing. Gap Bill:A property tax bill that covers the months between the ex iration of a vehicle's registration and the renewal of that registration or the issuance of anew registration. 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,j fees,and costs appurtenant to the released or refunded principal tax amount. August 15,2019 thru September 11,2019