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HomeMy WebLinkAboutAgenda 11-02-23; 8-d - Late Applications for Property Tax Exemption Exclusion 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 2, 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 six (6) untimely applications for exemption/exclusion from ad valorem taxation for six (6) 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. Five 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. One applicant is 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. Including these six applications, the Board will have considered a total of twenty-eight (28) 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. 2 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 $12,734.58. 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-2023-071 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 NOVEMBER 2, 2023 ACCOUNT BILL ORIGINAL I TAXABLE FINANCIAL NAME NUMBER YEAR VALUE VALUE IMPACT REASON FOR ADJUSTMENT Carroll, Faye 171137 2023 514,600 345,377 (1,961.29) Late application for exemption General Statute 105-277.1 (homestead exemption) McEllreath,Susan 278383 2023 277,700 140,474 (1,287.32) Late application for exemption General Statute 105-277.1 (homestead exemption) Parker, Patti 1061888 2023 359,100 314,100 (640.03) Late application for exemption General Statute 105-277.1C(disabled veteran exemption) Potts, Robert 288933 2023 471,900 235,950 (3,787.71) Late application for exemption General Statute 105-277.1 (homestead exemption) South, Ingeborg 301668 2023 171,400 85,700 (1,032.94) Late application for exemption General Statute 105-277.1 (homestead exemption) Ticic, Nikola 222064 2023 501,500 250,750 (4,025.29) Late application for exemption General Statute 105-277.1 (homestead exemption) Total (12,734.58) "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. September 16, 2023 thru October 13, 2023 5 Late Application For Exemption Good Cause Information November 2, 2023 ACCOUNT BILL NAME NUMBER YEAR Exemption Information Good Cause Reason Carroll, Faye 171137 2023 Homestead Exemption Had surgery McEllreath, Susan 278383 2023 Homestead Exemption Wasn't aware of the deadline Parker, Patti 1061888 2023 Disabled Veteran Had problems connecting with a veteran officer Potts, Robert 288933 2023 Homestead Exemption Did not know they would qualify South, Ingeborg 301668 2023 Homestead Exemption Re-applied name changed Ticic, Nikola 1 222064 2023 Homestead Exemption Did not know about the program September 16, 2023 through October 13, 2023