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HomeMy WebLinkAbout2022_06_08 BOER MINUTES DocuSign Envelope ID:6933A5D1-3883-438D-A6BB-A5D247790AOE MINUTES Orange County Board of Equalization and Review Virtual meeting held on June 8t", 2022 Board Members in attendance: Chair of the Board Hunter Beattie Yes Regular Member Barbara Levine No Regular Member Leon Meyers Yes Alternate Member Ryan Petrone Yes Alternate Member Reginald Morgan No Orange County Staff in attendance: Tax Administrator Nancy Freeman Business Officer Leslie Wilcox Administrative Assistant Vrinlli Flores Real Property Appraisal Manager Roger Gunn Deputy Tax Assessor Chad Phillips Personal Property Appraisal Manager Kandice Wright Appraiser Shavonda Mclean Staff Attorney Martha Bordogna Staff Attorney James Bryan Meeting Schedule: Time PIN or Abstract Appellant Appeared Appeal Type 3:00 PM 9787298186 Chapel Hill Pre School Yes Denial of Exemption 4:00 PM Discussion BOER Schedule Meeting called to order 3:00 PM Meeting adjourned 3:45 PM Motion made by: Hunter Beattie Motion seconded by: Leon Meyers Related meeting notes: Mr. Phillips addressed the board concerning an email sent by Mr. Meyers.The email had requested that the board have more input into the scheduling of meetings for the board.The board agreed that at the June 301" meeting,they would discuss the schedule for next year's board, as well as provide input for any post adjournment meetings for this year. Mr. Phillips will send the board a copy of the statute that regulates the dates the board can meet. Mr. Gunn made the representatives of Chapel Hill Preschool aware of a discovery notice that had been mailed. He stated that due to the board's ruling on the exemption, they would be able to request that the board grant the exemption in previous years to cover the time of the discovery. DocuSign Envelope ID:6933A5D1-3883-438D-A6BB-A5D247790AOE Property Identification: Property Owner Chapel Hill Pre School Appellant if different Jeanne Wakefield Property Address 108 Mt. Carmel Church Rd Parcel ID or Abstract 9787298186 Statement of Appeal: Chapel Hill Preschool attorney, Christina Pearsall presented on behalf of the appellant and requested that the Board grant the exemption for educational purposes and on the basis that no corporate entities or individuals have been financially enriched over the organization's period of operation and the property is operating as an educational institution. Current Assessed Value $1,541,000 County Opinion Deny Exemption Time of Hearin 3:00 PM Appellant Op inion Grant Exemption County Representative Shavonda McLean Board Decision Grant Exemption Evidence submitted by the appellant: Previous Evidence: • May 10,2022 Board of Equalization&Review meeting notice to appellant • Consent to Remote Hearing form • Email from appellant requesting that the Board grant the exemption Additional Evidence: • Email with attachments 1. Infant Room Lesson Plan Samples 2. Teaching strategies family conference form 3. Assessment Sample 4. Sample Assessment Report 5. Curriculum 6. Teaching Strategies 7. Infant-Toddler Communication for Parents 8. NC Foundations 9. Article about Teaching Infants 10. Article about Scaffolding when Teaching Infants 11. STEM with Infants and Toddlers 12. Brain Development • Email from Christopher B McLaughlin on interpretation of GS 105-278.4 Ms. Pearsall stated it is the belief of the appellant that the financial statements of the organization that were requested by the board are irrelevant based on GS 278.4. Ms. Pearsall used Duke University as an example of an educational institution that charged market rates and is exempt. She further cited an email from School of Government representative, Chris McLaughlin,to support her view. The appellant stated that in the Eagle Nest case,the court was referencing GS 278.7,and not GS 278.4,and the decision in the Eagle Nest case should not apply to the subject appeal.The appellant stated that all excess proceeds from the program have been reinvested to provide quality care for the children and that the Board of Directors is comprised of volunteers and community members. DocuSign Envelope ID:6933A5D1-3883-438D-A6BB-A5D247790AOE Evidence submitted by the county representative: As this was a continuation based on the motion of the board to ask for advice from the County Attorney as well as documents from the appellant,the Tax Office presented no new evidence. • Orange County Board of Equalization&Review form with brief summary of the subject property stating property tax exemption was denied due to the use of the property being for- profit. The organization's preschool is charging market rates for the services provided. An April 19,2022, County letter was mailed informing appellant of not being eligible for exemption as of January 1,2022 as County found no evidence the property is being used for an exempt purpose as specified in G.S. 105-278.4. • 2022 Application for Property Tax Exemption or Exclusion • 2021 Tax bill • IRS letter which grants tax exempt status to Chapel Hill Cooperative Preschool • Chapel Hill Cooperative Tuition Fees from website www.chapelhillcoop.com/enroll/tuition • UNC School of Government"Difficult Exemption Questions"from Coates Canons,NC Government Law Ms. McLean clarified that nonprofit organizations having the IRS tax exempt status 501(c)3 does not guarantee the organization can qualify for an exemption of North Carolina property tax because the use of the property drives the exemption and not just the tax status of the organization. Ms. Wright stated that the denial was based on the preschool charging market rates for their tuition and under G.S. 105-278.4a(2) "The owner is not organized or operated for profit..."The county requested the financial statements of the school to demonstrate that they were not for profit. The school refused to provide the requested financial documents. James Bryan, staff attorney,verified that Mr. Meyers had reviewed the video and evidence from the previous meeting,to ensure he was up to date on the evidence that had been presented. Mr. Bryan stated that financial documents are a factor to qualify for exemption under 105-278.7, and that both 105-278.7 and 105-278.4 deal with educational institutions, so since the Eagle Nest court case used market rents,then you could also apply that precedence to 105-278.4. He stated in regards to the email presented from Chris Mc Laughlin,he was not present at the hearing to be questioned, and the board should give the email the weight as they felt it deserved accordingly. Motion of the Board To grant the exemption under 105-278.4 Made the motion Leon Meyers Seconded the motion Hunter Beattie Voted For Ryan Petrone Voted Against DocuSign Envelope ID:6933A5D1-3883-438D-A6BB-A5D247790AOE Chair of the Board: LDoZMPABS83DE4D.... cuSigned by: Hunter Beattie 6/21/2022 Recording Secretary- DocuSigned by: Vrinlli Flores D- 6/22/2022