HomeMy WebLinkAboutAgenda - 06-15-2021; 8-b - Motor Vehicle Property Tax Releases Refunds
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date:June 15, 2021
Action Agenda
Item No. 8-b
SUBJECT: Motor Vehicle Property Tax Releases/Refunds
DEPARTMENT: Tax Administration
ATTACHMENT(S):
Resolution
Releases/Refunds Data Spreadsheet
Reason for Adjustment Summary
INFORMATION CONTACT:
Nancy T. Freeman, Tax Administrator,
(919) 245-2735
PURPOSE: To consider adoption of a resolution to release motor vehicle property tax values for
two taxpayers with a total of two bills that will result in a reduction of revenue.
BACKGROUND: North Carolina General Statute (NCGS) 105-381(a)(1) allows a taxpayer to
assert a valid defense to the enforcement of the collection of a tax assessed upon his/her property
under three sets of circumstances:
(a) “a tax imposed through clerical error”, for example when there is an actual error in
mathematical calculation;
(b) “an illegal tax”, such as when the vehicle should have been billed in another county, an
incorrect name was used, or an incorrect rate code (the wrong combination of applicable
county, municipal, fire district, etc. tax rates) was used;
(c) “a tax levied for an illegal purpose”, which would involve charging a tax which was later
deemed to be impermissible under state law.
NCGS 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”.
For classified motor vehicles, NCGS 105-330.2(b) allows for a full or partial refund when a tax has
been paid and a pending appeal for valuation reduction due to excessive mileage, vehicle
damage, etc. is decided in the owner’s favor.
FINANCIAL IMPACT: Approval of these release/refund requests will result in a net reduction of
$587.22 to Orange County, the towns, and school and fire districts. Financial impact year to date
for FY 2020-2021 is $28,910.93.
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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:
Accept the report reflecting the motor vehicle property tax releases/refunds requested in
accordance with the NCGS; and
Approve the attached release/refund resolution.
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NORTH CAROLINA RES-2021-043
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, Laura Jensen, 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
____________, 2021.
___________________________________
Clerk to the Board of Commissioners
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Military Leave and Earning Statement (LES): Is a document given on a monthly basis
to members of the United States military which reports their pay, home of record and
service status. The LES is required when applying for exemption from Motor Vehicle
Property Taxes. Active duty, non-resident military personnel may be exempt from North
Carolina motor vehicle property tax as allowed by United States Code, Title 50, Service
members’ Civil Relief Act of 1940. (Amended in 2009 by The Military Spouse’s
Residency Relief Act)
Titles and Brands: Section 1, Chapter 7
NCDMV Title Manual 14th Edition Revised January 2016
Title: Document that records the ownership of vehicles and the liens against them.
Custom-Built: A vehicle that is completely reconstructed or assembled from new or used
parts. Will be branded “Specially Constructed Vehicle”
Flood Vehicles: A motor vehicle that has been submerged or practically submerged in
water to the extent that damage to the body, engine, transmission or differential has
occurred.
Reconstructed Vehicles: A motor vehicle required to be registered that has been
materially altered from original construction due to the removal addition or substitution of
essential parts.
Salvaged Motor Vehicles: Is a vehicle that has been damaged by collision or other
occurrence to the extent that the cost of repairs exceeds 75% of fair market value, whether
or not the motor vehicle has been declared a total loss by an insurer. Repairs shall include
the cost of parts and labor, or a vehicle for which an insurance company has paid a claim
that exceeds 75% of the Fair Market Value. If the salvaged vehicle is six model years old
or newer, an Anti-Theft Inspection by the License and Theft Bureau is required.
Salvage Rebuilt Vehicle: A salvaged vehicle that has been rebuilt for title and registr ation.
Junk Vehicle: A motor vehicle which is incapable of operation or use upon the highways
and has no resale value except as scrap or parts. The vehicle shall not be titled.
Antique Vehicle: A motor vehicle manufactured in 1980 and prior
Commercial Trucking (IRP): The International Registration Plan is a registration
reciprocity agreement among jurisdictions in the US and Canada which provides for
payment of license fee on the basis of fleet miles operated in various jurisdictions.
Total Loss: Repairs were more than the market value of the vehicle and the insurance
company is unwilling to pay for the repairs.
Total Loss/Rebuilt: Whatever the repairs were to make the vehicle road worthy after a
Total Loss status has been given. Vehicle must be 5 years old or older. Vehicle status
then remains as salvaged or rebuilt.
Certificate of Destruction: NC DMV will not register this type of vehicle. It is not fit
for North Carolina roads.
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