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HomeMy WebLinkAboutAgenda - 02-07-2023; 8-d - Late Applications for Property Tax Exemption Exclusion 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 7, 2023 Action Agenda Item No. 8-d SUBJECT: Late Applications for Property Tax Exemption/Exclusion DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Exempt Status Resolution Nancy Freeman, Tax Administrator, Spreadsheet (919) 245-2735 Requests for Exemption/Exclusion PURPOSE: To consider four (4) untimely applications for exemption/exclusion from ad valorem taxation for four (4) bills for the 2022 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 1st 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. Four 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. Including these four applications, the Board will have considered a total of fifty-four untimely applications for exemption of 2022 taxes since the 2022 Board of Equalization and Review adjourned on June 30, 2022. Taxpayers may submit an untimely application for exemption of 2022 taxes to the Board of Commissioners through December 31, 2022. FINANCIAL IMPACT: The reduction in the County's tax base associated with approval of the exemption application will result in a reduction of FY 2022/2023 taxes due to the County, municipalities, and special districts in the amount of $7,859.95. 2 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 2022/2023 exemption. 3 NORTH CAROLINA RES-2023-009 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 2022 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 2022 are so approved as exempt. 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 2023. Clerk to the Board of Commissioners 4 Late exemption/exclusion application-GS 105-282.1(a1) BOCC REPORT - REAL/PERSONAL LATE EXEMPTION/ EXCLUSION February 7, 2023 ACCOUNT BILL ORIGINAL TAXABLE FINANCIAL NAME NUMBER YEAR VALUE VALUE IMPACT REASON FOR ADJUSTMENT Hardee, Donna Gail 71515 2022 166,100 83,050 (940.29) Late application for exemption General Statute 105-277.1 (homestead exemption) O'Brien,Caroline 254762 2022 564,900 282,450 (4,571.74) Late application for exemption General Statute 105-277.1 (homestead exemption) Soady,Sheryl&John 279754 2022 266,100 133,050 (2,043.91) Late application for exemption General Statute 105-277.1 (homestead exemption) Watson, Mae 1 257400 2022 86,1001 52,600 (304.01)1 Late application for exemption General Statute 105-277.1 (homestead exemption) Total (7,859.95) 'Circuit Breaker does not result in a reduction in value.The exemption received is based on the income of the taxpayer. 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. December 31, 2022 thru January 20, 2023 5 Late Application For Exemption Good Cause Information February 7, 2023 ACCOUNT BILL NAME NUMBER YEAR Exemption Information Good Cause Reason Hardee, Donna Gail 71515 2022 Homestead Exemption Never received completed application from taxpayer that was mailed in April.Application resubmitted in November O'Brien, Caroline 254762 2022 Homestead Exemption Disability determination awarded December 2022 Soady, Sheryl&John 279754 2022 Homestead Exemption Medical reasons Watson, Mae 1 257400 2022 lHomestead Exemption IMedical reasons December 31,2022 through January 20,2023