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HomeMy WebLinkAboutAgenda - 12-02-2024; 8-d - Late Applications for Property Tax Exemption Exclusion 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: December 2, 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 eleven (11) untimely applications for exemption/exclusion from ad valorem taxation for eleven (11) bills for the 2024 tax year. BACKGROUND: North Carolina General Statutes (NCGS) typically require applications for exemptions 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. Six (6) 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 (2) applicants are 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. Two (2) 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. One (1) applicant is applying for a charitable exemption based on NCGS 105-278.7 which allows for an exemption from property taxes for property used for educational, scientific, literary, or charitable purposes. Including these eleven (11) applications, the Board will have considered a total of sixty-three (63) untimely applications for exemption of 2024 taxes since the 2024 Board of Equalization and 2 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. FINANCIAL IMPACT: The reduction in the County's tax base associated with approval of the exemption applications will result in a reduction of FY 2024-2025 taxes due to the County, municipalities, and special districts in the amount of $14,112.76. 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-2024-067 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(a1) BOCC REPORT - REAL/PERSONAL LATE EXEMPTION/ EXCLUSION DECEMBER 2, 2024 ACCOUNT BILL I ORIGINAL I TAXABLE I FINANCIAL NAME NUMBER YEAR VALUE VALUE IMPACT REASON FOR ADJUSTMENT Barrett,Juanita 16282 2024 86,200 43,100 (492.90) Late application for exemption General Statute 105-277.1 (homestead exemption) Beatty,Faye 10028 2024 108,000 54,000 (793.75) Late application for exemption General Statute 105-277.1 (homestead exemption) Bryson,Herbert 125143 2024 186,000 114,100 (1,068.89) Late application for exemption General Statute 105-277.1 (homestead exemption) Cecelski,Elizabeth 295845 2024 591,000 364,450 (2,717.01) Late application for exemption General Statute 105-277.1 (homestead exemption) Dickersons Chapel AME Ch 51568 2024 281,300 0 (4,134.83) Late application for General Statute 105-278.3(religious purposes) Gail Elaine Thomas Trust 289353 2024 129,300 70,250 (678.41) Late application for exemption General Statute 105-277.1 (homestead exemption) Hendricks,William 3198222 2024 328,700 283,700 (554.81) Late application for exemption General Statute 105-277.1C(disabled veteran exemption) Jubilee Healing Farm 3210929 2024 3,780 0 (35.75) Late application for exemption General Statute. 105-278.7(charitable) Nevilles Chapel United Church of Christ 51110 2024 232,400 0 (2,676.78) Late application for General Statute 105-278.3(religious purposes) Scott,Rajah 112143 2024 193,100 148,100 (434.56) Late application for exemption General Statute 105-277.1C(disabled veteran exemption) Weaver,Tonya 241038 2024 107,400 53,700 (525.08) Late application for exemption General Statute 105-277.1 (homestead exemption) Total (14,112.77) '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. October 19, 2024 thru November 15, 2024 5 Late Application For Exemption Good Cause Information December 2, 2024 NAME ACCOUNT NUMBER BILL YEAR EXEMPTION INFORMATION GOOD CAUSE REASON Barrett, Juanita 16282 2024 HE Wasn't aware of the deadline Beatty, Faye 10028 2024 HE Health issues Bryson, Herbert 125143 2024 HE Wasn't aware of the deadline Cecelski, Elizabeth 295845 2024 HE Was waiting on divorce settlement Dickersons Chapel AME Ch 51568 2024 BUS Audit information was not correct Gail Elaine Thomas Trust 289353 2024 HE Reapplied due to name change Hendricks, William 3198222 2024 VA Was waiting for status update Jubilee Healing Farm 3210929 2024 BUS Wasn't aware of the program Nevilles Chapel United Church of Christ 51110 2024 BUS Incomplete Audit Scott, Rajah 112143 2024 VA Was waiting for status update Weaver, Tonya 241038 2024 HE Health issues October 19, 2024 through November 15, 2024