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HomeMy WebLinkAboutAgenda 09-04-2025; 8-d - Late Applications for Property Tax Exemption Exclusion 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 4, 2025 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 twenty (20) untimely applications for exemption/exclusion from ad valorem taxation for twenty (20) bills for the 2025 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. Twelve (12) 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 (1) applicant is applying for Circuit Breaker exclusion based on NCGS 105-277.1 B which allows for tax relief based on income. The Circuit Breaker exclusion is a tax deferral program. Five (5) 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. One (1) applicant is applying for low or moderate-income exclusion based on NCGS 105-278.6, which allows for an exemption of a nonprofit organization providing housing for individuals or families with low or moderate income. 2 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 twenty (20) applications, the Board will have considered a total of twenty (20) untimely applications for exemption of 2025 taxes since the 2025 Board of Equalization and Review adjourned on July 31, 2025. Taxpayers may submit an untimely application for exemption of 2025 taxes to the Board of Commissioners through December 31, 2025. FINANCIAL IMPACT: The reduction in the County's tax base associated with approval of the exemption applications will result in a reduction of FY 2025-2026 taxes due to the County, municipalities, and special districts in the amount of $39,282.02. Of this total, the impact on the County's portion of the taxes is $24,424.95. 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. By considering and approving qualifying exemptions, the County helps ensure equitable access to statutory tax relief, thereby supporting residents of varying incomes and circumstances. In cases where exemptions are tied to nonprofit housing, charitable, or veteran services, the action also advances the County's Guiding Principles of equity and stewardship, ensuring that government services are applied fairly and that resources are managed responsibly to meet community needs. RECOMMENDATION(S): The Manager recommends that the Board approve the attached resolution for the above listed applications for FY 2025-2026 exemption. 3 NORTH CAROLINA RES-2025-040 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 2025 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 2025 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 , 2025. Clerk to the Board of Commissioners 4 Late exemption/exclusion application-GS 105-282.1(at) BOCC REPORT - REAL/PERSONAL LATE EXEMPTION/ EXCLUSION SEPTEMBER 4, 2025 ORANGE ACCOUNT BILL ORIGINAL TAXABLE FINANCIAL COUNTY NAME NUMBER YEAR VALUE VALUE IMPACT TAX IMPACT REASON FOR ADJUSTMENT Abb,William 308917 2025 904,300 859,300 (608.17) (287.24)Late application for exemption General Statute 105-277.1C(disabled veteran exemption' DHIC Inc 1055107 2025 834,000 0 (10,726.90) (5,323.42)Late application General Statute105-278.6(low or moderate income housing; Friends of Moorefields 3218052 2025 1,062,800 0 (7,674.48) (6,783.85)Late application for exemption General Statute105-278.7(other charitable,educational,scientific,literary or charitable purposes Gorski,Jeffrey 138543 2025 240,500 120,250 (1,043.65) (767.56)Late application for exemption General Statute 105-277.1(homestead exemption; Huang,Huojin 317231 2025 380,400 190,200 (2,446.35) (1,214.05)Late application for exemption General Statute 105-277.1(homestead exemption; Johnson,Catherine 49805 2025 338,300 169,150 (2,286.06) (1,079.68)Late application for exemption General Statute 105-277.1(homestead exemption; Johnson,Odis 11623 2025 469,500 270,050 (1,456.78) (1,273.09)Late application for exemption General Statute 105-277.1(homestead exemption; Lane,Angelia 209259 2025 441,800 220,900 (2,985.46) (1,410.01)Late application for exemption General Statute 105-277.1(homestead exemption; McConnell,Gary 227310 2025 210,600 105,300 (1,212.32) (672.13)Late application for exemption General Statute 105-277.1(homestead exemption; Patrick,James 208462 2025 382,900 337,900 (324.95) (287.24)Late application for exemption General Statute 105-277.1C(disabled veteran exemption Ramsey,Gattis 58946 2025 159,500 92,750 (461.78) (426.07)Late application for exemption General Statute 105-277.1(homestead exemption; Sands,Jane Winifred 316895 2025 510,100 445,400 (469.33) (412.98)Late application for exemption General Statute 105-277.1(homestead exemption; Smith,Cedrick 293374 2025 760,200 715,200 (318.74) (287.24)Late application for exemption General Statute 105-277.1C(disabled veteran exemption' Smith,Gerald 263263 2025 480,100 435,100 (390.56) (287.24)Late application for exemption General Statute 105-277.1C(disabled veteran exemption Stone,Janet Marie 286460 2025 8,220 0 (56.87) (56.87)Late application for exemption General Statute 105-277.1(homestead exemption; Toren,Isaac 788 2025 186,600 93,523 (643.91) (594.11)Late application for exemption General Statute 105-277.1(homestead exemption; Whitted,Sharon 275360 2025 197,100 127,050 (806.49) (447.13)Late application for exemption General Statute 105-277.1(homestead exemption; Witham,George 303828 2025 475,000 430,000 (453.74) (287.24)Late application for exemption General Statute 105-277.1C(disabled veteran exemption Wright,Kay 281327 2025 412,000 412,000 (3,395.19) (1,684.92)Late application for exemption General Statute 105-277.1 B(circuit breaker; Yoder,Delores 156457 2025 264,100 132,050 (1,520.29) (842.88)Late application for exemption General Statute 105-277.1(homestead exemption, Total (39,282.02) (24,424.95) *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. July 1,2025 thru August 15,2025 5 Late Application For Exemption Good Cause Information September 4, 2025 NAME ACCOUNT BILL YEAR EXEMPTION GOOD CAUSE REASON NUMBER Abb, William 308917 2025 VA Waiting on approval from VA DHIC 1055107 2025 BUS Wasn't aware of deadline Friends of Moorefields 3218052 2025 BUS Didn't know the exemption would be removed after merging properties together Gorski, Jeffrey 138543 2025 HE Issues receiving mail Huang, Huojin 317231 2025 HE Wasn't aware of deadline Johnson, Catherine 49805 2025 HE Wasn't aware of deadline Johnson, Odis 11623 2025 HE Wasn't aware of the program Lane, Angelia 209259 2025 HE Didn't know the exemption would be removed with ownership change McConnell, Gary 227310 2025 HE The bill was too high Patrick, James 208462 2025 VA Submitted NCDVA-9 form didn't know an application was needed Ramsey, Gattis 58946 2025 HE Wasn't aware of deadline Sands, Jane Winifred 316895 2025 HE Wasn't aware of deadline Smith, Cedrick 293374 2025 VA VA approved after deadline Smith, Gerald 263263 2025 VA VA approved after deadline Stone, Janet Marie 286460 2025 HE Issues receiving mail Torian, Isaac 788 2025 HE Wasn't aware of the program Whitted, Sharon 275360 2025 HE Wasn't aware of the program Witham, George 303828 2025 VA Re-applied after name change Wright, Kay 281327 2025 CB Weather was bad Yoder, Delores 156457 2025 HE Wasn't aware of deadline July 1, 2025 through August 15, 2025