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Home My WebLink AboutAgenda 10-03-23; 8-d - Late Applications for Property Tax Exemption Exclusion 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 3, 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 sixteen (16) untimely applications for exemption/exclusion from ad valorem taxation for sixteen (16) bills for the 2023 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. Twelve 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. Two applicants are applying for disabled veteran exclusion based on NCGS 105-277.1C, which allows for an exclusion of $45,000 for an honorably discharged Disabled American Veteran. One applicant 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 applicant is applying for exclusion based on NCGS 105-278.4, which allows for exclusion from property taxes for property used for educational purposes. 2 Including these sixteen applications, the Board will have considered a total of twenty-two untimely applications for exemption of 2023 taxes since the 2023 Board of Equalization and Review adjourned on June 22, 2023. Taxpayers may submit an untimely application for exemption of 2023 taxes to the Board of Commissioners through December 31, 2023. FINANCIAL IMPACT: The reduction in the County's tax base associated with approval of the exemption application will result in a reduction of FY 2023/2024 taxes due to the County, municipalities, and special districts in the amount of $25,698.80. 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 2023/2024 exemption. 3 NORTH CAROLINA RES-2023-062 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 2023 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 2023 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 OCTOBER 3, 2023 ACCOUNT BILL ORIGINAL TAXABLE FINANCIAL NAME NUMBER YEAR VALUE VALUE IMPACT REASON FOR ADJUSTMENT Alford,Wilma 238233 2023 271,500 135,750 (1,930.77) Late application for exemption General Statute 105-277.1 (homestead exemption; Bishop,Elva 196726 2023 172,900 86,450 (1,387.78) Late application for exemption General Statute 105-277.1 (homestead exemption; Bynum,Deloris 214367 2023 200,800 117,044 (941.58) Late application for exemption General Statute 105-277.1 (homestead exemption; Cooper,Judith 179634 2023 67,050 48,123 (172.08) Late application for exemption General Statute 105-277.1 (homestead exemption; Crawford,Linda 3205201 2023 196,500 110,747 (804.45) Late application for exemption General Statute 105-277.1 (homestead exemption; Eno River Mill 1054817 2023 520,800 0 (7,407.33) Late application for exemption General Statute. 105-278.4(educational purposes; Hatami Trust 1074596 2023 286,100 143,050 (2,034.60) Late application for exemption General Statute 105-277.1 (homestead exemption) Lynwood Morris Wheeley Trustee 298573 2023 329,900 238,750 (856.99) Late application for exemption General Statute 105-277.1 (homestead exemption) New Heart Church of the Nazarene 111200 2023 526,000 0 (4,945.45) Late application General Statute 105-278.3(religious purposes) Rashdi,Shahnaz 988872 2023 379,500 243,616 (1,270.65) Late application for exemption General Statute 105-277.1 (homestead exemption; Russell,Tony 287221 2023 101,400 56,400 (416.38) Late application for exemption General Statute 105-277.1C(disabled veteran exemption; Smith,Eloise 225414 2023 52,150 30,910 (199.25) Late application for exemption General Statute 105-277.1 (homestead exemption; Tate,Knox 3183136 2023 360,800 315,800 (722.38) Late application for exemption General Statute 105-277.1C(disabled veteran exemption; Wright,Veronica 228963 2023 5,160 0 (48.41) Late application for exemption General Statute 105-277.1 (homestead exemption) Wynn,Shirley 278061 2023 323,500 204,327 (1,117.96) Late application for exemption General Statute 105-277.1 (homestead exemption; Wypasek,Janice 1074264 2023 239,400 119,700 (1,442.74) Late application for exemption General Statute 105-277.1 (homestead exemption) Total (25,698.80) "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. August 19, 2023 thru September 15, 2023 5 Late Application For Exemption Good Cause Information October 3, 2023 ACCOUNT BILL NAME NUMBER YEAR Exemption Information Good Cause Reason Alford, Wilma 238233 2023 Homestead Exemption Did not know they would qualify Bishop, Elva 196726 2023 Homestead Exemption Did not know they would qualify Bynum, Deloris 214367 2023 Homestead Exemption Re-applied due to incomplete audit Cooper, Judith 179634 2023 Homestead Exemption Did not know they would qualify Crawford, Linda 3205201 2023 Homestead Exemption Re-applied Property ID Number(PIN) change Eno River Mill, LLC 1054817 2023 Educational Re-applied for full exemption (charter school expansion) Hatami Trust 1074596 2023 Homestead Exemption Re-applied name changed Lynwood Morris Wheeley Trustee 298573 2023 Homestead Exemption Re-applied Property ID Number(PIN) change New Heart Church of the Nazarene 111200 2023 Religious purposes Re-applied land size changed Rashdi, Shahnaz 988872 2023 Homestead Exemption Re-applied name changed Russell, Tony 287221 2023 Disabled Veteran Just found out about the program Smith, Eloise 225414 2023 Homestead Exemption Was not of aware of deadline Tate, Knox 3183136 2023 Disabled Veteran Late receiving documents from veteran officer Wright, Veronica 228963 2023 Homestead Exemption Re-applied did not list mobile home timely Wynn, Shirley 278061 2023 Homestead Exemption Income decreased Wypasek, Janice 1074264 2023 Homestead Exemption lWas not of aware of deadline August 19, 2023 through September 15, 2023