HomeMy WebLinkAboutAgenda - 06-15-2021; 6-d - Extension of 2021 Formal Appeals Period 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: June 15, 2021
Action Agenda
Item No. 6-d
SUBJECT: Extension of 2021 Formal Appeals Period
DEPARTMENT: Tax Administration
ATTACHMENT(S): INFORMATION CONTACT:
Table Showing Frequency of Appeal Nancy T. Freeman, Tax Administrator,
Submission (919) 245-2735
North Carolina General Statute 105-322
Proposed Resolution
PURPOSE: To consider a proposed resolution extending the 2021 formal appeals period from
June 30, 2021 to September 1, 2021 by delaying of the adjournment of the 2021 Board of
Equalization and Review (BOER) in order to provide additional time for property owners to appeal
the value of their real property in a revaluation year.
BACKGROUND: The Tax Office completed its countywide revaluation of real property as of the
appraisal date of January 1, 2021. Notices were mailed to property owners on March 24, 2021.
The entire appeals period, including both informal and formal appeals periods, began when the
notices were received in March, and is scheduled to end when the BOER adjourns on June 30,
2021 .
After the revaluation notices were mailed, local community leaders of the Northside Neighborhood
Conservation District in Chapel Hill brought to the attention of the Tax Assessor's Office that there
were possible inequities in the values of some properties located in the Northside Neighborhood
Conservation District and other neighborhood conservation districts in Chapel Hill due to the use
restrictions in these districts. These community leaders requested the Board extend the period for
taxpayers to file informal appeals for the valuations of their properties.
The informal appeals period began with the mailing of the revaluation notices in March, and
statutorily ended upon the convening of the BOER on Monday, May 3, 2021. In accordance with
North Carolina General Statute (N.C.G.S.) 105-322(c), there is no option to extend the informal
appeals period past the convening of the Board of Equalization and Review, which statutorily must
convene no later than the first Monday in May.
An option that is available is to extend the formal appeals period past its current June 30, 2021
adjournment date. N.C.G.S. 105-322(e) states that in a revaluation year the BOER shall complete
its duties no later than December 1, meaning that the current adjournment date could be
extended.
2
If the Board chooses to extend the date of the BOER's adjournment, the recommendation of the
Tax Office is to extend the BOER's adjournment date to no later than September 1, 2021 by
publishing the notice(s) required by statute. This date will allow additional time for property owners
to appeal their value and at the same time minimize the impacts to the County as much as
possible.
Extending the formal appeals period to September 1 creates impacts for the County that should
be considered. Doing so will result in increased costs to the County. It may result in impacts to
the Finance and Administrative Services Department's estimated tax revenues. An extension may
also result in appeals that are based on issues that cannot be considered, such as an increase in
a tax bill overall.
Currently the Tax Office has received 1,777 appeals. Of those, 1,679 are informal and 98 are
formal appeals. Decision notices for many of the informal appeals were mailed on May 5, 2021
and more notices were mailed on May 28, 2021. A chart is provided that details the number of
appeals that have been submitted per week. The chart shows that the filing of appeals peaked at
the end of April, reflecting that the greatest surge of appeal submission has passed.
The Tax Office has contracted with the firm that provided commercial values for the revaluation
to defend those values for commercial appeals through the original ending date of June 30, 2021.
Currently 239 commercial appeals have been received. If the formal appeals period is extended
until September 1, commercial appeals submitted after June 30 will not be defended by the firm
under contract, which could result in unplanned loss of value as a result of the additional appeals.
Board of Equalization and Review members are paid for the hearings they attend. For each
meeting there are three members present, including one Chair, totaling a cost of$250 per hearing.
The funding level requested by the Tax Office in the FY 2021-22budget did not take into
consideration the possibility of additional hearings, which could cost the County as much as an
additional $6,000.
Should the Board choose to extend the formal appeals period, which would be achieved by
extending the adjournment of the BOER, an extension may be accomplished by complying with
the notice requirements for later adjournment described in N.C.G.S. 105-322(f): publishing notice
at least once in the newspaper(s) in which the first notice was published. The publication must be
prior to the date first announced for adjournment.
FINANCIAL IMPACT: Extension of the formal appeals period could result in impacts to the
Finance and Administrative Services Department's estimated tax revenues. An unplanned cost of
up to $6,000 will occur in order to compensate Board of Equalization and Review members for
the attending additional hearings.
SOCIAL JUSTICE IMPACT: The following Orange County Social Justice Goal is applicable to
this item:
• GOAL: FOSTER A COMMUNITY CULTURE THAT REJECTS OPPRESSION AND
INEQUITY
The fair treatment and meaningful involvement of all people regardless of race or color;
religious or philosophical beliefs; sex, gender or sexual orientation; national origin or ethnic
background; age; military service; disability; and familial, residential or economic status.
3
The extension of the formal appeals period would be in line with this goal. It will allow for the
residents who are most affected by the revaluation to have more time to appeal their value and to
request needed assistance to complete their appeal.
ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility Goal
impact associated with this item.
RECOMMENDATION(S): The Manager recommends that the Board:
1) consider the impacts of extending the formal appeals period by extending the Board of
Equalization and Review's adjournment date;
2) make a decision on the matter; and
3) if appropriate, approve and authorize the Chair to sign the proposed resolution to extend
the formal appeals period and direct the Tax Office to advertise the Board of Equalization
and Review's new adjournment date in the newspaper(s) where the original advertisement
for the Board of Equalization and Review schedule was placed.
4
Frequency of Real Property Valuation Appeals
Frequency of Appeal Submission March 24 through May 27, 2021
Y
Y
Y
N
VI
Q
a
CL
Q
0
a
z
3/24-3/28 3/29-4/4 4/5-4/11 4/12-4/18 4/19-4/25 4/26-5/2 5/3-5/9 5/10-5/16 5/17-5/23 5/24-5/27
Week
The number of appeals received per week is reflected in the chart above.
The Informal Appeals Period covered from March 24 through May 2.
The Formal Appeals Period began on May 3.
5
Article 21.
Review and Appeals of Listings and Valuations.
§ 105-322. County board of equalization and review.
(a) Personnel. — Except as otherwise provided herein, the board of equalization and
review of each county shall be composed of the members of the board of county
commissioners.
Upon the adoption of a resolution so providing, the board of commissioners is authorized to
appoint a special board of equalization and review to carry out the duties imposed under this
section. The resolution shall provide for the membership, qualifications, terms of office and the
filling of vacancies on the board. The board of commissioners shall also designate the chairman
of the special board. The resolution may also authorize a taxpayer to appeal a decision of the
special board with respect to the listing or appraisal of his property or the property of others to
the board of county commissioners. The resolution shall be adopted not later than the first
Monday in March of the year for which it is to be effective and shall continue in effect until
revised or rescinded. It shall be entered in the minutes of the meeting of the board of
commissioners and a copy thereof shall be forwarded to the Department of Revenue within 15
days after its adoption.
Nothing in this subsection (a) shall be construed as repealing any law creating a special
board of equalization and review or creating any board charged with the duties of a board of
equalization and review in any county.
(b) Compensation. —The board of county commissioners shall fix the compensation and
allowances to be paid members of the board of equalization and review for their services and
expenses.
(c) Oath. — Each member of the board of equalization and review shall take the oath
required by Article VI, § 7 of the North Carolina Constitution with the following phrase added
to it: "that I will not allow my actions as a member of the board of equalization and review to
be influenced by personal or political friendships or obligations,". The oath must be filed with
the clerk of the board of county commissioners.
(d) Clerk and Minutes. — The assessor shall serve as clerk to the board of equalization
and review, shall be present at all meetings, shall maintain accurate minutes of the actions of
the board, and shall give to the board such information as he may have or can obtain with
respect to the listing and valuation of taxable property in the county.
(e) Time of Meeting. — Each year the board of equalization and review shall hold its
first meeting not earlier than the first Monday in April and not later than the first Monday in
May. In years in which a county does not conduct a real property revaluation, the board shall
complete its duties on or before the third Monday following its first meeting unless, in its
opinion, a longer period of time is necessary or expedient to a proper execution of its
responsibilities. Except as provided in subdivision (g)(5) of this section, the board may not sit
later than July I except to hear and determine requests made under the provisions of
subdivision (g)(2), below, when such requests are made within the time prescribed by law. In
the year in which a county conducts a real property revaluation, the board shall complete its
duties on or before December 1, except that it may sit after that date to hear and determine
requests made under the provisions of subdivision (g)(2), below, when such requests are made
within the time prescribed by law. From the time of its first meeting until its adjournment, the
board shall meet at such times as it deems reasonably necessary to perform its statutory duties
and to receive requests and hear the appeals of taxpayers under the provisions of subdivision
(g)(2), below.
G.S. 105-322 Page 1
6
(f) Notice of Meetings and Adjournment. — A notice of the date, hours, place, and
purpose of the first meeting of the board of equalization and review shall be published at least
three times in some newspaper having general circulation in the county, the first publication to
be at least 10 days prior to the first meeting. The notice shall also state the dates and hours on
which the board will meet following its first meeting and the date on which it expects to
adjourn; it shall also carry a statement that in the event of earlier or later adjournment, notice to
that effect will be published in the same newspaper. Should a notice be required on account of
earlier adjournment, it shall be published at least once in the newspaper in which the first notice
was published, such publication to be at least five days prior to the date fixed for adjournment.
Should a notice be required on account of later adjournment, it shall be published at least once
in the newspaper in which the first notice was published, such publication to be prior to the date
first announced for adjournment.
(g) Powers and Duties. — The board of equalization and review has the following
powers and duties:
(1) Duty to Review Tax Lists. — The board shall examine and review the tax
lists of the county for the current year to the end that all taxable property
shall be listed on the abstracts and tax records of the county and appraised
according to the standard required by G.S. 105-283, and the board shall
correct the abstracts and tax records to conform to the provisions of this
Subchapter. In carrying out its responsibilities under this subdivision (g)(1),
the board, on its own motion or on sufficient cause shown by any person,
shall:
a. List, appraise, and assess any taxable real or personal property that
has been omitted from the tax lists.
b. Correct all errors in the names of persons and in the description of
properties subject to taxation.
C. Increase or reduce the appraised value of any property that, in the
board's opinion, has been listed and appraised at a figure that is
below or above the appraisal required by G.S. 105-283; however, the
board shall not change the appraised value of any real property from
that at which it was appraised for the preceding year except in
accordance with the terms of G.S. 105-286 and 105-287.
d. Cause to be done whatever else is necessary to make the lists and tax
records comply with the provisions of this Subchapter.
e. Embody actions taken under the provisions of subdivisions (g)(1)a
through (g)(1)d, above, in appropriate orders and have the orders
entered in the minutes of the board.
f. Give written notice to the taxpayer at the taxpayer's last known
address in the event the board, by appropriate order, increases the
appraisal of any property or lists for taxation any property omitted
from the tax lists under the provisions of this subdivision (g)(1).
(2) Duty to Hear Taxpayer Appeals. — On request, the board of equalization and
review shall hear any taxpayer who owns or controls property taxable in the
county with respect to the listing or appraisal of the taxpayer's property or
the property of others.
a. A request for a hearing under this subdivision (g)(2) shall be made in
writing to or by personal appearance before the board prior to its
adjournment. However, if the taxpayer requests review of a decision
made by the board under the provisions of subdivision (g)(1), above,
G.S. 105-322 Page 2
7
notice of which was mailed fewer than 15 days prior to the board's
adjournment, the request for a hearing thereon may be made within
15 days after the notice of the board's decision was mailed.
b. Taxpayers may file separate or joint requests for hearings under the
provisions of this subdivision (g)(2) at their election.
C. At a hearing under provisions of this subdivision (g)(2), the board, in
addition to the powers it may exercise under the provisions of
subdivision (g)(3), below, shall hear any evidence offered by the
appellant, the assessor, and other county officials that is pertinent to
the decision of the appeal. Upon the request of an appellant, the
board shall subpoena witnesses or documents if there is a reasonable
basis for believing that the witnesses have or the documents contain
information pertinent to the decision of the appeal.
d. On the basis of its decision after any hearing conducted under this
subdivision (g)(2), the board shall adopt and have entered in its
minutes an order reducing, increasing, or confirming the appraisal
appealed or listing or removing from the tax lists the property whose
omission or listing has been appealed. The board shall notify the
appellant by mail as to the action taken on the taxpayer's appeal not
later than 30 days after the board's adjournment.
(3) Powers in Carrying Out Duties. — In the performance of its duties under
subdivisions (g)(1) and (g)(2), above, the board of equalization and review
may exercise the following powers:
a. It may appoint committees composed of its own members or other
persons to assist it in making investigations necessary to its work. It
may also employ expert appraisers in its discretion. The expense of
the employment of committees or appraisers shall be borne by the
county. The board may, in its discretion, require the taxpayer to
reimburse the county for the cost of any appraisal by experts
demanded by the taxpayer if the appraisal does not result in material
reduction of the valuation of the property appraised and if the
appraisal is not subsequently reduced materially by the board or by
the Department of Revenue.
b. The board, in its discretion, may examine any witnesses and
documents. It may place any witnesses under oath administered by
any member of the board. It may subpoena witnesses or documents
on its own motion, and it must do so when a request is made under
the provisions of subdivision(g)(2)c, above.
A subpoena issued by the board shall be signed by the chair of
the board, directed to the witness or to the person having custody of
the document, and served by an officer authorized to serve
subpoenas. Any person who willfully fails to appear or to produce
documents in response to a subpoena or to testify when appearing in
response to a subpoena shall be guilty of a Class 1 misdemeanor.
(4) Power to Submit Reports. — Upon the completion of its other duties, the
board may submit to the Department of Revenue a report outlining the
quality of the reappraisal, any problems it encountered in the reappraisal
process, the number of appeals submitted to the board and to the Property
Tax Commission, the success rate of the appeals submitted, and the name of
G.S. 105-322 Page 3
8
the firm that conducted the reappraisal. A copy of the report should be sent
by the board to the firm that conducted the reappraisal.
(5) Duty to Change Abstracts and Records After Adjournment. — Following
adjournment upon completion of its duties under subdivisions (g)(1) and
(g)(2) of this subsection, the board may continue to meet to carry out the
following duties:
a. To hear and decide all appeals relating to discovered property under
G.S. 105-312(d) and(k).
b. To hear and decide all appeals relating to the appraisal, situs, and
taxability of classified motor vehicles under G.S. 105-330.2(b).
C. To hear and decide all appeals relating to audits conducted under
G.S. 105-2960) and relating to audits conducted under G.S.
105-2960) and (1) of property classified at present-use value and
property exempted or excluded from taxation.
d. To hear and decide all appeals relating to personal property under
G.S. 105-317.1(c). (1939, c. 310, s. 1105; 1965, c. 191; 1967, c.
1196, s. 6; 1971, c. 806, s. 1; 1973, c. 476, s. 193; 1977, c. 863; 1987,
c. 45, s. 1; 1989, c. 79, s. 3; c. 176, s. 1; c. 196; 1991, c. 110, s. 5;
1991 (Reg. Sess., 1992), c. 1007, s. 22; 1993, c. 539, s. 720; 1994,
Ex. Sess., c. 24, s. 14(c); 2001-139, ss. 6, 7; 2002-156, s. 3.)
G.S. 105-322 Page 4
9
RES-2021-042
ORANGE COUNTY BOARD OF COMMISSIONERS
A RESOLUTION EXTENDING THE 2021 FORMAL APPEALS PERIOD
WHEREAS, 2021 is a year in which all real properties in Orange County are reappraised; and after
the 2021 revaluation notices were mailed in March 2021, local community leaders of the Northside
Neighborhood Conservation District in Chapel Hill brought to the attention of the Tax Assessor's Office
that there were possible inequities in the values of some properties located in the Northside District and
other neighborhood conservation districts; and
WHEREAS, due to these possible inequities in the values,these local community leaders requested that
the period for taxpayers to file appeals from the valuations of their property be extended; and
WHEREAS, the Board has considered the impacts of extending the formal appeals period by
extending the Board of Equalization and Review's adjournment date in order to make a decision on the
matter; and
BE IT FURTHER RESOLVED, that the Board approves the resolution to extend the formal appeals
period by extending the adjournment date of the Board of Equalization and Review to September 1, 2021;
and
BE IT FURTHER RESOLVED, that the Board directs the Tax Office to advertise the Board of
Equalization and Review's new adjournment date in the newspaper(s)where the original advertisement for
the Board of Equalization and Review schedule was placed.
Adopted by the Orange County Board of County Commissioners this the day of ,
20
By: Attest:
Renee Price, Chair Laura Jensen, Clerk to the Board
Orange County Board of Commissioners