HomeMy WebLinkAboutAgenda - 12-10-2024; 8-e - Refund of Overpayment of Excise Tax to Bagwell Holt Smith, P.A. 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 10, 2024
Action Agenda
Item No. 8-e
SUBJECT: Refund of Overpayment of Excise Tax to Bagwell Holt Smith, P.A.
DEPARTMENT: Register of Deeds
ATTACHMENT(S): INFORMATION CONTACT:
Refund Request Letter from Bagwell Holt Amy McLamb, 919-245-2677
Smith, P.A. Mark Chilton, 919-245-2679
Recorded Corrective Affidavit
Recorded Deed and Receipt
Related North Carolina General Statutes
PURPOSE: To approve a refund request for overpayment of excise tax in the amount of $400
from Bagwell Holt Smith, P.A.
BACKGROUND: North Carolina General Statute 105-228.37 sets forth the process for requesting
a refund of overpayment of excise tax. The statute states a taxpayer who pays more than is due
may request a refund by submitting a written request for a refund to the Board of County
Commisioners of the county where the tax was paid, and must explain why the taxpayer believes
a refund is due.
On July 29, 2024, Bagwell Holt Smith, P.A. submitted a Deed for electronic recording stating the
amount of excise tax due as $800, which was collected at the time of recording.
On October 31, 2024, Bagwell Holt Smith, P.A. recorded a corrective Affidavit stating the amount
of $800 in excise tax was incorrect, and it should have been $400. Bagwell Holt Smith has
submitted the attached written request for a refund of $400 for overpayment of excise tax.
FINANCIAL IMPACT: Bagwell Holt Smith P.A. is requesting a $400 refund for overpayment of
excise tax.
ALIGNMENT WITH STRATEGIC PLAN: There are no Orange County Strategic Plan Goals
applicable to this item.
RECOMMENDATION(S): The Manager recommends that the Board approve the refund of $400
in overpayment of excise tax to Bagwell Holt Smith, P.A.
2
BAGWELL HOLT SMITH P.A.
ArrORN€vS AT LAW
F 1 aOl5-r R COURT,SURE 200
CA*;t HIL,140 av GAOLINA 27616
TELEPHONE:x9191401-0062
FACSIMILE:19';91 AOM053
—n bhspo—
November 1,2024
Via email only amclambf�or�n ecolf clgov
Orange County Boad of County Commissioners
Re: Refund Revenue Stamp
Walter Tyson Wynn,Jr.afka/Walter T.Wynn,Jr.and Susan R.Wynn sale to
LEREC-IRA,LLC,a North Carolina Limited Liability Company
1404TimberWolf Drive,Durham,NC
Deed Book 6853 Page 623
Corrective Affidavit Book 6861 Page 428
Dear Sir/Madam:
Attached please find the recorded Corrective Affidavit and recorded Deed. The'ExciseTax
reflected on the deed of$800 was incorrect. The correct amount should have been$400.
We hereby request a refund of$400 for the overpayment of excise tax. We are not a
requesting refund of recording fees.
The refund should be sent to Bagwell Holt Smith,P.A.Attn: Lauren R.Nance,111 Cloister
CL Suite 100,Chapel Hitl,NC 27514.
Please feet free to contact me should you require any additional information.
Very tru ly yours,
Lauren R.Nance
Attorney
BAGWELL HOLT SMITH,PA.
Chopel Hill •Southern Village• Research Triangle Park•Mebone•HIgh Poini•Columbia
This Document eRecorded: 1013112024 12:42:53 PM
Fee:$20.00 Tax:$0.00
Grange County, North Carolina
1sI` MARK CHILTON, register of deeds by MOLLY KEMPA
CORRECTIVE AMDAVIT
Prepared By&Return To; Bagwell Bolt Smith,PA,ill Cloister Ct.,Ste 100,Chapel Hill NC 27514
CORRECTIVE AFFIDAVIT TO GIVE NOTICE OF TYPOGRAPHICAL OR OTHER DBVIOUS
MINOR ERROR(S)MADE IN A DEED AS ORIGINALLY RECORDED IN THE ORMGE COUNTY
REGISTRY
RE: BOOK 6853 PIN 983549-74320
PAGE 623
TITLE OF ORIGINAL INSTRUTMENT:North Carolina General Warranty Deed
NAMES OF ALL PARTIES TO THE ORIGINAL INSTRUMENT:
GRANTORS(S): Walter Tyson Wynn,Jr,alkla Walter T.Wynn,Jr.and spouse,Susan R.
Wynn
GRANTEE(S): LEREC-IRA.LLC.A North Carolina Limited Liability Company
Now comes the undersigned as attorney for the Grantee,being first duly sworn and does say
the following:
1.Through mutual mistake,inadvertence or mistake of the undersigned draftsmen the
Instrument referenced above,a copy of which is attached as Exhibit A hereto,contained the
foIlowing typographylcal or other minor error:
Excise Tax was incorrectly reflected as$809.DD
2.It was the intent of the parties to the Instrument that the erroneous information in the
Instrument reference above,as corrected,should read as follows:
Excise Tax: $400.00
submitted electronically by "Bagwell Holt smith PA-CC"
In compliance with North Carolina statutes governing recordable documents
and the terms of the submitter agreement with the orange county Register of Deeds.
submitted electronically by "Bagwell Holt smith PA-cc"
in compliance Adth Horth Carolina statutes governing recordable documents
and the terms of the submitter agreement with the orange county Register of needs.
BK 6853 PG 623-625(3) DOC#30105$89
This Document eRecorded: 07/2912024 11:28:16 AM 4
Fae: $26.00 Tax: $800.00
Orange County, North Carolina
MARK CHILTON, Register of Deeds by M0ILLY K€MPA
NORTH CAROLIIVA GENTRA,L WARRANTY DEED
Ex=Tax: s100.00
Parcel Identifier:9836-89-7432 Yedfled by Orange Co mty oo the—day of '20—
By: 20—By:
MAI/Box to: Oraetee
This instrument was prepared by. Dagwell Holt Smith P.A.
THIS DEED made effective as of the day of 20_by and between
GRANTOR GRATv'T'EE
Welter Tyson Wynn,Jr,aWa Wafter T.WymA Jr.and sptauss LERECMA,LLC
Susan R Wynn A North Carolloa Limited LJabfiity Company
4440 Thomas Road 1404 Timber Wolf Drive
Mebane,NC 27302 Durham,NC 27713
Fater its appropriate block for each motor and Grantee: name,mailing address,and,if appropriate,character of entity, e.g.
corporation or"arta Wwa.
The designation Grantor and Graotce as used herein shall Include said parties,their heirs,successors,and assigns,and shall include
singular,plural,masculine,femlaine,or acuter as required by context,
WIMSSEIT,that the Ciintor,for a valuable consideration paid by the Grantee,the receipt of which is hereby arknow1mged,has
and by these presents does grant,bargain,sell,and convey Motu be Grantee to fee simpie,all that certain lot,parcel of lead,or
condominium unit situated in Orange County,North Carwhua,and more partiadarly described as follows:
Sex Exhibit A attarho and ineortwra#ed herein byrefereace.
The property hereinabove described was acquired by Grantor by instrument recorded in Book 1796 Page 290.
All or a porti[w of the property herein conveyed C]dnesldaes nrytinclude the prmary residence ofa Grantor,
A map showing the alcove-deser[hed property Is recorded in Book 127 Page 131.
TO RAVE AND TO HOLD the aforesaid la or parcel of land and all privileges and appurtenances thereto belonging to the GTancec in
lee simple.
NC BarAawcivfi�Varna No.3 C Reviaad M13
Aimed by Aa-dneat wnh floe NC Bar Aaioctatioe Noah Carol inn Bar An&netimo-NC Fuer Ftam No.3
Mob Cool Lna UwcWion V RerAwn Int.-Sten dud Farm 3
subinitted electronically by "eagwell pout seith PA-CC"
in compliance with [north Carolina statutes governing recordable documents
and the terms of the submitter agreement with the orange county Register of Deeds.
BK 6853 PG 624 DOC# 30105889
5
And the Grantor covenants with the Grantee,hat Grantor is seized of the premises is fee simple,has the right to convey the same in
fee simple,that title is marketable and bee and clear of all encumbrances,and that Grantor will warrant and defend the title aga:zut the
lawns claims of all persons wtiomsoerer,other than the following exceptions:
Ad valorem taxes for the current year;utility easments and unviolated covenants,wnditious or restrictions that do not materially
affect the value of the Property.
IN WMNESS WHEREOF,the Granter has duty executed the foregoing as of the day and year first above written.
WalterTyson Wymn a�7da W �Tym'
sustm R wrrynu
STA'L'E OF NORTH CAROLINA
CG'UN-FY OF \Cz rce
R.�,X,"L�---.a Notary Public,do hereby certify that the fallowing person{s}personally appeared bethre me
This day and acknowledged the due execution ofthe foregoing instrument:Walter Tyson Wynn,Ir wVa Walter T.Wynn,Jr.and Susan
R Wyzm
Irate: `, - c�C`+�'l r
Z �L
(SEALi j%jMIIrll/, Printed Name:
My Commission Expires:
r yf
"Ith ttt o
NC Bar Association r-0=Na 3 O 1Zevisea 712013
Printed by AgroementwM the NC Baa•Association NoAli Carolina Har Aa dodon—NC Bw Farm No.3
NoA Carolina,AAsociatian oMR oltora,Inc.—Stmderd Form 3
BK 6853 PG 625 DOC# 301 05889
6
EXHIBIT A
Being all of Lo[23,coatainiag 3.01 acres more or less as shown on plat recorded in Plat Book 127,Page 171,Orange County
Regishy.
IvC Har Axsncialio¢t Form�*o. 3❑Re1ised 7!2013
hinted by Agm meet with the NO Har Arsaciatiaa North Carolina Har Assneiation—NC Her Form No,
Nor*Carolina Aasocisclon omepItots,lnc.—Standard Form 3
7
MARK CHILTON
Orange County Register of Deeds
228 South Churton Street, Suite 300
P O Dox 8181
Hillsborough, NC 27278
(919) 245-2675
Receipt For Services
Cashier: MOLLY KEMPA Receipt Started: 07/2912024 11:26:50 AN
Receipt 9: 20240729112650-32 Reprinted: 11/2012024 01:16:32 PN
SIMPLIFILE. LC
Bagwell Holt Smith PA-CC
DEED (DEED)
Party 1: WYNN,WALTER TYSON!JR
Party 2. SIGSKY3, LLC
Book I Page: 68531620 -3 Page(s)
Time: 07/2912024 11:28:09 AM
Recording Fee: $26.00
Excise Tax: $400.00
SUBTOTAL: 5426.00
DEED (DEED)
Party 1: WYNN,WALTER TYSON JR
Party 2: LEREC-IRA, LLC
Book I Page: 6853 1623 -3 Page(s)
Time: 07/29/2024 11:2$:10 AM
Recording Fee: $26.00
Excise Tax: $800.00
SUBTOTAL: $$26.0(
Receipt Total: $1,252.0(
Change Due: $0.0(
' RRx
1� " a
IVIN
is
134 1 North Carolina Guidebook for Registers of Deeds
e excise tax on instruments. . . applies to timber deeds
provide that"[t}h
and contracts for the sale of standing timber to the same extent as if these
„100
deeds and contracts conveyed an interest in real property.
3.2.6.1.2 AMOUNT AND COLLECTION art thereof of the
The state excise tax rate is$�on each$500Or fraccon e ed 101 An assumed
the interest or property
ue ofn
voldo ,
r " eta
st is counted as
" n o id
considerationparcons
obligation secured by a deed
ran assumed loan or other obligation secured
and there is no deduction f
by the propertyrs not a multiple of$500,the amount
If the amount paid for the Property
f consideration or value is rounded up to the next multiple of$500 before
f o property was
the tax.For example,i£the amount paid for the p p tY
computing 000,and the tax
' taxpayer would round
$27,700,the taxpayer would round the amount
up the tarp y
would be$56.if the amount paid was$3
the
the amount up to$32,500,and theax to the register of the county
The transferor(grantor,seller)Pays
where the land lies 1921E the land lies in more than t o the real est t 1 es.03
be paid to the county where the most valuable p
The statute provbe recorded,the
ides that"[b}efore the instrument may
the tax paid.' This
Register of Deeds must collect the tax due and mark the instrument to
g
indicate that the tax has been paid axEffie ato mount
reg stered instrument or
A . is accomplished with a tax stamp
` with a notation that the excise tax was paido the register er s eg its sponsible for
`r The person who presents the instrument t g
re orting the amount of tax due to the register 105 the register is therefore
p plication of the
not responsible for making determinate ole to about
a representation
tax or its amount,nor is it the registers z
no consideration has been paid for a transfer.Thiscreates
h odd
that
dynamic,because although the grantor is responsible o paying
to the register,the grantee or the grantee's representative
ha presents
of
>�
the instrument,reports the amount of tax due, and P
loo.G.S.los-228.3o(a)-
lol.Id.
102.Id.
103.Id.
;?
104.G.S.105-228.32.
' 105.Id.
t
-77777
-3 a.�,�:
____ _._.�..__.__.. _.,ate._
t�
rr� d�i
Chapter I Real Estate Instrument Registration 735 I
S
the tax amount.The grantee has an interest in ensuring that the tax is paid,
e because a lien attaches to a taxpayer's real property for unpaid state taxes.106
The person presenting the instrument is likely to have been authorized b 1
the grantor, according to agreement or as a matter o£law, to report the
ii
e tax due,and the register is not responsible for investigating this apparent
authority.
The statute does require that the register"collect
1' the tax due and mark
1 the instrument to indicate that the tax has been paid and the amount of the
tax paid"1°'Thus, a register should not accept for registration an instru- lull
t ment for which the presenter reports a tax due unless the tax is paid.If a
presenter claims that a tax is not due under questionable circumstances
the register deems unclear on the record, the register may make a note in j
the margin reserved for the register's use about the presenters representa- j.
!,I
l tion to clarify why no tax was collected and to provide information that
may become useful if the presenter's claim is later scrutinized.The statute j
provides a mechanism for e countbring
iilll'I il,
� the Y to bri ng a civil action in superior
court for recovery of a tax not paid within thirty days after the register Ili ii�llll 11
demands payment.los
illllllllrl����i
For instruments that have been photocopied or scanned into the records,
the amount on the tax stamp on the recorded instrument can be used 'li 111 lull'Illi
hu
to calculate the consideration paid for the transfer based on the rate in
effect at the time of that transfer.A real estate conveyance tax has been j!ijllll l'L'
in effect for much of North Carolina's history since the Civil War,initially I'
ll
IIJIIII.OIIIIII
ll :
by the federal government.The amount of the tax has remained generally 'I,Il I,
,llll4iilp;i
the same over more than a century even as property values have
reatl III
appreciated. Slight increases in excise tax reflect the overn g Y
g ment's war
financing efforts.On January 1, 1968,the federal tax was repealed,and the lj;jil IIII }'
��Illli�,ll
state imposed the tax payable to the counties. On August 1, 1991,the tax lllplld!
',hili it�I
was doubled,with most of the additional amount paid to the state. Table Illu'�IIII h
3.1 shows the history of the tax rate. IIIillluuV'
I�II�III`I����Ildilh
Ili 91Illilllldlii.'l
3.2.6.1.3 REFUNDS AND CORRECTIONS1.
Someone who claims to have paid more excise tax than was due m i91II l�lilliil
written refund request with the coup commissioners may file a h'llj I��lllljil�i,l'I
county sszoners within six months
I`I�Illlliilllpl,i'
106.The lien,which is applied to the excise tax by G.S.105-228.35,is describe `,IIIIIIIIiVlilll`
in G.S.10524�1(d). Illllllljllll'lili
d I I III iflllllp I '
107.G.S.105-228-32.
108.G.S.105-228-33. y I111j'llilllldlll
ollll I4141,�i
i I I,i Ilii
ll �l li �
��Ill,ll�uililllll
�illll Ih 1
, IIIbI
l lllllll4
111jjlIjIIIII!iIIi
plil,lpj,jl,
illy liar,!!I�; _
F
�dfi j
d
f
3
!t
Mz f�
i i E
136 } North Carolina Guidebook for Registers of Deeds
of payment 109 The commissioners must hold a heating within iionninety and the
of the request or at a later date agreed upon by the comm
taxpayer,and the taxpayer may appeal to the North Carolinahs� p er
d if the tax
Revenue and the superior court 110 Before a tax is refunded,
Mu
record a new instrument reflecting the correct rd>n tkrat county a
was paid in the wrong county,the taxpayer must
statement that no tax was due for that reason and include the grantors'nt being
grantees'names and the book and page numbers of the u1
corrected.11I The register must be notified that it isaa�corrected
ttu Department of
and the register must no
the finance officer
Revenue that it has been recorded llz
The statute is not entirely clear about refund of the state portion of the
1 the county refunds both
excise tax,but it implies hThe statuntelp provides that after paying the
the county and state po
refund with any applicable inteust inform the Depart-
rest,e Sa disnty agrees h the z fund,it"May
me of Revenue,and if the departm $ ,ills
assess the taxpayer for the amount of the refund.
Someone who has underpaid the tax for a conveyance by an instrument
already recordso on the public
ed and wishes to pay additional tax may do
Haltered,with the
record in two ways-The instrument can be re-recorded,
additional
tax.Another method that enables the taxpayer torefe is t the
n additiona
reason for al recording is to use an affidavit
t
prior instrument and provides an a ro riate explanation,with which the
Y PP P
additional tax can be paid and on which the register will mark the payment.
I09.G.S.105-228.37(a).
110.G.S.105-228.37.In Mecklenburg county the county commissioners may del-
egate approval authority to the couri
nty manager.if the manager does not approve,the
commissioners must hear the appeal.S.L.2009-110.
111.
G.S.105-229.37(e).
112.Id.
113.G.S.105-228.37(c).
i,
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