HomeMy WebLinkAboutAgenda 12-09-2025; 8-b - Motor Vehicle Property Tax Releases-Refunds 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: December 9, 2025
Action Agenda
Item No. 8-b
SUBJECT: Motor Vehicle Property Tax Releases/Refunds
DEPARTMENT: Tax Administration
ATTACHMENT(S): INFORMATION CONTACT:
Resolution Nancy Freeman, Tax Administrator,
Release/Refund Data Spreadsheet (919) 245-2735
Reason for Adjustment Summary
PURPOSE: To consider adoption of a resolution to release motor vehicle property tax values for
three (3) taxpayers with a total of eight (8) bills that will result in a reduction of revenue.
BACKGROUND: North Carolina General Statute (NCGS) 105-381(a)(1) allows a taxpayer to
assert a valid defense to the enforcement of the collection of a tax assessed upon his/her property
under three sets of circumstances:
(a) "a tax imposed through clerical error", for example, when there is an actual error in
mathematical calculation;
(b) "an illegal tax", such as when the vehicle should have been billed in another county, an
incorrect name was used, or an incorrect rate code (the wrong combination of applicable
county, municipal, fire district, etc. tax rate(s) was used;
(c) "a tax levied for an illegal purpose", which would involve charging a tax which was later
deemed to be impermissible under state law.
NCGS 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".
For classified motor vehicles, NCGS 105-330.2(b) allows for a full or partial refund when a tax has
been paid and a pending appeal for valuation reduction due to excessive mileage, vehicle
damage, etc. is decided in the owner's favor.
FINANCIAL IMPACT: Approval of these release/refund requests will result in a net reduction in
revenue of $2,860.42 to Orange County, municipalities, and special districts. Of this total, the
impact on the County's portion of the taxes is $1,986.40. The financial impact year to date for FY
2025-2026 is $15,363.73. The Tax Assessor recognized that refunds could impact the budget
and accounted for these in the annual budget projections.
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ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• MISSION STATEMENT — Orange County is a visionary leader in providing governmental
services valued by our community, beyond those required by law, in an equitable,
sustainable, innovative, and efficient way.
• GUIDING PRINCIPLE — STEWARDSHIP AND ADVOCACY
We make proactive data-supported decisions and advocate to local, state, and Federal
governments in response to our community's needs in a way that best utilizes our
resources.
• GUIDING PRINCIPLE — SOCIAL JUSTICE
We reject oppression and inequity by ensuring fair and equitable treatment of all people.
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.
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NORTH CAROLINA RES-2025-065
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
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BOCC REPORT - REGISTERED MOTOR VEHICLES
DECEMBER 9, 2025
ORANGE
COUNTY
ACCOUNT BILL ORIGINAL ADJUSTED FINANCIAL TAX
NAME NUMBER YEAR VALUE VALUE IMPACT IMPACT REASON FOR ADJUSTMENT ADDITIONAL INFORMATION
Bell,James 88158251 2025 22,930 22,930 (172.41) 0.00 Situs error(illegal tax)
Billing,John David 87949611 2025 35,675 35,675 (259.46) 0.00 'Situs error(illegal tax)
Billing,John David 87959040 2025 30,210 30,210 (224.31) 0.00 Situs error(illegal tax)
Hulka,Gregory 8502016 2025 25,200 500 (174.95) (157.66) Antique plate(property classification)
Hulka,Gregory 87966567 2025 51,000 500 (357.69) (322.34) Antique plate(property classification)
Hulka,Gregory 87966593 2025 83,000 500 (584.35) (526.60) Antique plate(property classification)
Hulka,Gregory 87966601 2025 22,500 500 (155.83) (140.43) Antique plate(property classification)
Hulka, Gregory 87966761 2025 132,000 500 (931.42) (839.37) Antique plate(property classification)
(2,860.42) (1,986.40) TOTAL
Adjustment Descriptions
Clerical error G.S. 105-381(a)(1)(a):e.g. when there is an actual error in mathematical calculation.
Illegal tax G.S. 105-381(a)(1)(b):e.g. when the vehicle should have been billed in another county, an incorrect name was used, or an incorrect rate code was used.
Tax levied for an illegal purpose G.S. 105-381(a)(1)(c):e.g. charging a tax that was later deemed to be impermissible under State law.
Appraisal appeal G.S. 105-330.2(b):e.g.reduction in value due to excessive mileage or vehicle damage.
"Situs error:An incorrect rate code was used to calculate bill. Value remains constant but bill amount changes due to the change in specific tax rates applied to that physical location.
Classification GS 105-330-9(b):e.g.Antique automobiles are designated a special class of property under the NC Constitution.
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.
November 15, 2025 thru November 21, 2025