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HomeMy WebLinkAboutAgenda - 03-06-2025; 8-c - Property Tax Releases Refunds 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 6, 2025 Action Agenda Item No. 8-c SUBJECT: Property Tax Releases/Refunds DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Resolution Nancy Freeman, Tax Administrator, Release/Refund Data Spreadsheet (919) 245-2735 PURPOSE: To consider adoption of a resolution to release property tax values for five (5) taxpayers with a total of five (5) bills that will result in a reduction of revenue. BACKGROUND: The Tax Administration Office has received five taxpayer requests for release or refund of property taxes. North Carolina General Statute 105-381(b), "Action of Governing Body", provides that "upon receiving a taxpayer's written statement of defense and request for release or refund, the governing body of the Taxing Unit shall, within 90 days after receipt of such a request, determine whether the taxpayer has a valid defense to the tax imposed or any part thereof and shall either release or refund that portion of the amount that is determined to be in excess of the correct liability or notify the taxpayer in writing that no release or refund will be made". North Carolina law allows the Board to approve property tax refunds for the current and four previous fiscal years. FINANCIAL IMPACT: Approval of this change will result in a net reduction in revenue of $5,852.46 to Orange County, municipalities, and special districts. Of this total, the impact on the County's portion of the taxes is $4,915.09. The financial impact year to date for FY 2024-2025 is $69,973.04. The Tax Assessor recognized that refunds could impact the budget and accounted for these in the annual budget projections. 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 attached resolution approving these property tax release/refund requests in accordance with North Carolina General Statute 105-381. 2 NORTH CAROLINA RES-2025-013 ORANGE COUNTY REFUND/RELEASE RESOLUTION(Approval) Whereas,North Carolina General Statutes 105-381 and/or 330.2(b)allows for the refund and/or release of taxes when the Board of County Commissioners determines that a taxpayer applying for the release/refund has a valid defense to the tax imposed; and Whereas,the properties listed in each of the attached"Request for Property Tax Refund/Release" has been taxed and the tax has not been collected: and Whereas,as to each of the properties listed in the Request for Property Tax Refund/Release,the taxpayer has timely applied in writing for a refund or release of the tax imposed and has presented a valid defense to the tax imposed as indicated on the Request for Property Tax Refund/Release. NOW,THEREFORE,IT IS RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF ORANGE COUNTY THAT the recommended property tax refund(s)and release(s)are approved. 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 ,2025 Clerk to the Board of Commissioners 3 Clerical error G.S.105-381(a)(1)(a) BOCC REPORT - REAL/PERSONAL Illegal tax G.S.105-381(a)(1)(b) Appraisal appeal G.S.105-330.2(b) MARCH 6, 2025 ORANGE ACCOUNT BILLING ORIGINAL ADJUSTED FINANCIAL COUNTY NAME NUMBER YEAR VALUE VALUE IMPACT TAX IMPACT REASON FOR ADJUSTMENT ADDITIONAL INFORMATION Martin,Joseph 3210687 2023 8,000 0 ($512.03) ($300.71)Assessed in error(illegal tax) Gap Bill:vehicle registered in Georgia during gap period. Homestead Exemption was not transferred to the new combined bill when McCartney,Herbert 251913 2024 104,000 56,700 ($450.72) ($408.15)Incorrect value(clerical error) manufactured home was combined with real property. ML Designs Inc. 152443 2024 26,053 0 ($382.95) ($224.81)1 Assessed in error(illegal tax) Business closed prior to 1/1/2024 assessment date. New Sharon Church,Inc. 203802 2024 421,600 0 ($4,122.41) ($3,637.99)Assessed in error(illegal tax) 2024 Application was mis-filed in tax office. St Lukes Christian 293624 2024 39,800 0 ($384.35) ($343.43)Assessed in error(illegal tax) Compliance review;Parcel classified as a cemetery in accordance with NCGS 105-278. Total (5,852.46) ($4,915.09) Gap Bill:A property tax bill that covers the months between the expiration of a vehicle's registration and the renewal of that registration or the issuance of a new registration. 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. January 18,2025 thru February 14, 2025