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Home My WebLink AboutAgenda - 11-07-2024; 8-d - Late Applications for Property Tax Exemption Exclusion 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 7, 2024 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 fifteen (15) untimely applications for exemption/exclusion from ad valorem taxation for fourteen (14) taxpayers for the 2024 tax year. BACKGROUND: North Carolina General Statutes (NCGS) typically require applictions for exemptions to be filed during the listing period, which is usually during the month of January. Applictions 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 appliction, 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. Eleven 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 105-277.1(C), which allows for an exclusion of $45,000 for an honorably discharged Disabled American Veteran. Three applicants are applying for exclusion based on NCGS 105-278.3, which allows for exclusion from property taxes for property used for a religious purpose. Including these fifteen (15) applications, the Board will have considered a total of fifty-two (52) untimely applications for exemption of 2024 taxes since the 2024 Board of Equalization and Review adjourned on June 20, 2024. Taxpayers may submit an untimely application for exemption of 2024 taxes to the Board of Commissioners through December 31, 2024. 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 2024-2025 taxes due to the County, municipalities, and special districts in the amount of $19,367.64. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 6: DIVERSE AND VIBRANT ECONOMY OBJECTIVE 5. Increase access to and awareness of resources and assistance available to residents and businesses. RECOMMENDATION(S): The Manager recommends that the Board approve the attached resolution for the above listed applications for FY 2024-2025 exemption. 3 NORTH CAROLINA RES-2024-059 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 2024 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 2024 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 , 2024. Clerk to the Board of Commissioners 4 Late exemption/exclusion application-GS 105-282.1(all) BOCC REPORT - REAL/PERSONAL LATE EXEMPTION/ EXCLUSION NOVEMBER 7, 2024 ACCOUNT BILL I ORIGINAL TAXABLE FINANCIAL NAME NUMBER YEARI VALUE VALUE IMPACT REASON FOR ADJUSTMENT Atwater,Johnson 16946 2024 160,000 82,750 (889.77) Late application for exemption General Statute 105-277.1(homestead exemption) Bennett Louise 16562 2024 135,900 67,950 (807.85) Late application for exemption General Statute 105-277.1(homestead exemption) Bonilla,Emily 204954 2024 125,300 62,650 (605.01) Late application for exemption General Statute 105-277.1(homestead exemption) Bourgeois,Rachael 1074229 2024 287,000 242,000 (554.81) Late application for exemption General Statute 105-277.1C(disabled veteran exemption) Brown,James 6127 2024 129,400 64,700 (951.03) Late application for exemption General Statute 105-277.1(homestead exemption) Cates,Burnice 1212 2024 150,300 75,250 (715.15) Late application for exemption General Statute 105-277.1(homestead exemption) Cheek,Robert 312125 2024 111,200 59,400 (506.50) Late application for exemption General Statute 105-277.1(homestead exemption) Community Home Trust(Mary Matos) 1062239 2024 111,500 55,750 (1,729.86) Late application for exemption General Statute 105-277.1(homestead exemption) Crowder,Mattie 202977 2024 260,900 134,650 (1,203.04) Late application for exemption General Statute 105-277.1(homestead exemption) First Community Baptist Church 231947 2024 72,000 0 (1,058.33) Late application for General Statute 105-278.3(religious purposes) First Community Baptist Church 231948 2024 528,000 0 (7,761.07) Late application for General Statute 105-278.3(religious purposes) Hillsborough Church of God 280160 2024 70,900 0 (693.26) Late application for General Statute 105-278.3(religious purposes) Scarborough(McCandies),Emily 12357 2024 167,300 83,650 (817.93) Late application for exemption General Statute 105-277.1(homestead exemption) Thompson,Robert 103202 2024 160,400 80,200 (784.20) Late application for exemption General Statute 105-277.1(homestead exemption) Williams,Dorothy 242042 2024 131,550 100,900 (289.83) Late application for exemption General Statute 105-277.1(homestead exemption) Total (19,367.64) *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 14, 2024 thru October 18,2024 5 Late Application For Exemption Good Cause Information November 7, 2024 ACCOUNT BILL EXEMPTION NAME NUMBER YEAR INFORMATION GOOD CAUSE REASON Atwater, Johnson 280160 2024 HE Fixed income Bennett, Louise 16562 2024 HE Fixed income Bonilla, Emily 204954 2024 HE Was not aware the program was available Bourgeois, Rachael 1074229 2024 VA Awarded disability on 9/13/2024 Brown, James 6127 2024 HE Was not aware the program was available Cates, Burnice 1212 2024 HE Was not aware the program was available Cheek, Robert 312125 2024 HE Was not aware the program was available Community Home Trust(Mary Matos) 1062239 2024 HE Wasn't aware of the deadline Crowder, Mattie 202977 2024 HE Was not aware the program was available First Community Baptist Church 231947 2024 BUS Didn't realize it was a separate parcel. First Community Baptist Church 231948 2024 BUS Didn't realize it was a separate parcel. Hillsborough Church of God 280160 2024 BUS Incomplete audit Scarborough, Emily 12357 2024 HE Was not aware the program was available Thompson, Robert 103202 2024 HE Confused on which program and deadline Williams, Dorothy 1 242042 2024 IHE I Fixed income September 14, 2024 through October 18, 2024