Loading...
HomeMy WebLinkAboutAgenda - 11-05-20; 8-d - Applications for Property Tax Exemption Exclusion ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 5, 2020 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: Nancy T. Freeman, Tax Administrator PURPOSE: To consider thirteen untimely applications for exemption/exclusion from ad valorem taxation for thirteen bills for the 2020 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 1 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. Nine 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 105-277.1C, which allows for an exclusion of $45,000 for an honorably discharged Disabled American Veteran. One of the applicants is applying for exclusion based on NCGS 105-278.3, which allows for exclusion from property taxes for property used for a religious purpose. One of the applicants is applying for exemption based on NCGS 105-278.6 (8), which allows an exemption of a nonprofit organization providing housing for individuals or families with low or moderate incomes. 1 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 thirteen applications, the Board will have considered a total of thirty-six untimely applications for exemption of 2020 taxes since the 2020 Board of Equalization and Review adjourned on June 25, 2020. Taxpayers may submit an untimely application for exemption of 2020 taxes to the Board of Commissioners through December 31, 2020. 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 2020/2021 taxes due to the County, municipalities, and special districts in the amount of $36,994.72. 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 for the above-listed applications for FY 2020/2021 exemption. 2 RES-2020-070 NORTH CAROLINA 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 2020 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 2020 are so approved as exempt. Upon motion duly made and seconded, the foregoing resolution was passed by the following votes: Ayes: Commissioners ________________________________________________________ ___________________________________________________________________________________ Noes: _____________________________________________________________________ I, Greg Wilder, Interim 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 business 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 ____________, 2020. _________________________________ Clerk to the Board of Commissioners 3 Late exemption/exclusion application - GS 105-282.1(a1)BOCC REPORT - REAL/PERSONAL LATE EXEMPTION/ EXCLUSION NOVEMBER 5, 2020 September 17, 2020 thru October 14, 2020 NAME ACCOUNT NUMBER BILL YEAR ORIGINAL VALUE TAXABLE VALUE FINANCIAL IMPACT REASON FOR ADJUSTMENT Bogart, Tracy 171274 2020 582,200 380,541 (2,352.35) Late application for exemption General Statute 105-277.1 (homestead exemption) Cremeans, Raymond 193314 2020 165,900 82,950 (800.21) Late application for exemption General Statute 105-277.1 (homestead exemption) Deprez, Christina 3183149 2020 678,000 339,000 (3,173.04) Late application for exemption General Statute 105-278 (historic property) Earle, John 180170 2020 233,300 116,650 (1,125.32) Late application for exemption General Statute 105-277.1 (homestead exemption) Habitat for Humanity, Orange County 111767 2020 468,500 0 (7,560.18) Late application General Statute105-278.6 (low or moderate income housing) Harrelson, Jeraline 136693 2020 122,800 62,019 (576.75) Late application for exemption General Statute 105-277.1 (homestead exemption) Herndon, Jimmy 204493 2020 101,900 64,600 (369.86) Late application for exemption General Statute 105-277.1 (homestead exemption) Hollingsworth, Joseph Clark 101572 2020 189,200 94,600 (1,103.50) Late application for exemption General Statute 105-277.1 (homestead exemption) Hunt, Edgar William 251667 2020 474,400 429,400 (726.16) Late application for exemption General Statute 105-277.1C (disabled veteran exemption) McFann, Ann 79086 2020 76,700 38,350 (380.27) Late application for exemption General Statute 105-277.1 (homestead exemption) Moore, Edward L.209301 2020 63,200 38,200 (240.67) Late application for exemption General Statute 105-277.1 (homestead exemption) St. Paul AME Church 3183118 2020 924,500 0 (15,430.82) Late application General Statute105-278.3 (religious purposes) Wilson, Lee 189566 2020 393,331 197,781 (3,155.59) Late application for exemption General Statute 105-277.1 (homestead exemption) (36,994.72) Total 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. *Circuit Breaker does not result in a reduction in value. The exemption received is based on the income of the taxpayer. 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18