Loading...
HomeMy WebLinkAboutAgenda - 03-16-2004-9fORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 16, 2004 Action Agenda Item No. q'.p SUBJECT: Request for Property Tax Refund on Registered Motor Vehicle DEPARTMENT: Revenue PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Refund Resolutions (Approval/Disapproval) INFORMATION CONTACT: Jo Roberson, ext 2727 TELEPHONE NUMBERS: Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 336-227-2031 PURPOSE: To consider one request for refund of property taxes on a motor vehicle. BACKGROUND: John and Rebecca Bechtel recently contacted the Tax Collector's office regarding payment of a 2003 property tax bill on a trailer. The value placed on the trailer was too high, but the owners failed to appeal the valuation within 30 days, as required by the North Carolina Machinery Act. The owners paid the tax bill in a timely manner. They recently recognized that they had paid the tax bill last year on a value of $19,110 rather than $639, and requested a refund of the overpayment. In 2002, the Bechtels had received a tax bill with an erroneous value placed on this trailer. They made a timely appeal of the valuation, supplied documentation supporting an appropriate valuation of $750, and timely paid a corrected tax bill produced by the Tax Office, Understandably, they assumed that the value had been corrected for future years as well. However, motor vehicles are not permanently listed in North Carolina and the value typically changes from year to year. When the electronic record of the Bechtels' motor vehicle registration for this trailer were provided by the North Carolina Division of Motor Vehicles to the Orange County Revenue Office in early 2003, the incorrect, higher value had been automatically generated based on the trailer's vehicle identification number (VIN). Neither tax staff nor the taxpayer noted this error until recently, Under North Carolina statute, there is no provision for a refund based on a valuation error for which a timely appeal is not submitted, The Tax Collector and Attorney examined the circumstances of this case to determine if a "clerical error" within the meaning of tax law had occurred and could provide the basis for a refund. It is the opinion of the Tax Collector and Attorney that the circumstances do not constitute a clerical error and that there is no statutory basis to grant the requested refund, Staff will provide more detail about the circumstances of this case during a brief presentation at the March 4 meeting. FINANCIAL IMPACT: If the refund is granted, the reduction in revenue to the County and fire district will be $165.35. RECOMMENDATION(S): The Manager acknowledges that there is no clerical error, within the narrow and archaic meaning of the Machinery Act. However, the collective machinery of the State and Orange County produced a tax bill with an incorrect value for the trailer in question for a second year in a row. Although the Manager acknowledges that the taxpayer has a responsibility to make sure the tax bill is correct, the burden is also on the County and the State to produce accurate tax bills. Therefore, the Manager recommends that the BOCC consider a refund, based on the functional error that is obvious in this case. NORTH CAROLINA ORANGE COUNTY REFUND RESOLUTION (Denial) Whereas, North Carolina General Statutes 105-381 allows for the refund of taxes when the Board of County Commissioners determines that a taxpayer applying for the refund has a valid defense to the tax imposed; and Whereas, the property listed in the attached "Request for Property Tax Refund" has been taxed and the tax has been collected: and Whereas, the taxpayer has timely applied in writing for a refund of the tax imposed but has not presented a valid defense to the tax imposed as indicated on the Request for Property Tax Refunds. NOW, THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF ORANGE COUNTY THAT the property tax refund recommended for denial is denied. Upon motion duly made and seconded, the foregoing resolution was passed by the following votes: Ayes: Commissioners Noes: I, Donna Baker, 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 Connilssioners for said County at a regular 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 20_ Clerk to the Board of Commissioners NORTH CAROLINA ORANGE COUNTY REFUND RESOLUTION (Approval) Whereas, North Carolina General Statutes 105-381 and/or 330,2(B) allows for the refund of taxes when the Board of County Commissioners determines that a taxpayer applying for the refund has a valid defense to the tax imposed; and Whereas, the property listed in the attached "Request for Property Tax Refund" has been taxed; and the tax has been collected: and Whereas, the taxpayer has timely applied in writing for a refund of the tax imposed and has presented a valid defense to the tax imposed as indicated on the Request for Property Tax Refunds NOW, THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF ORANGE COUNTY THAT the recommended property tax refund is approved. Upon motion duly made and seconded, the foregoing resolution was passed by the following votes: Ayes: Commissioners Noes: I, Donna Baker, Clerk to the Board of Commissioners for the County of Orange, North Carolina, DO HEREBY CERTIFY that the foregoing has been carefiilly copied from the recorded minutes of the Board of Commissioners for said County at a regular 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 Clerk to the Board of Commissioners