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HomeMy WebLinkAboutAgenda 02-03-2026; 8-d - Late Applications for Property Tax Exemption Exclusion 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 3, 2026 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 five (5) untimely applications for exemption/exclusion from ad valorem taxation for five (5) 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. Five (5) 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. Including these five (5) bills, the Board will have considered a total of eighty-nine (89) untimely bills 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 net reduction in revenue of $5,058.23. to Orange County, municipalities, and special districts. Of this total, the impact on the County's portion of the taxes is $3,535.01. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • GOAL 6: DIVERSE AND VIBRANT ECONOMY 2 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-2026-008 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 , 2026. Clerk to the Board of Commissioners 4 Late exemption/exclusion application-GS 105-282.1(a1) BOCC REPORT - REAL/PERSONAL LATE EXEMPTION/ EXCLUSION FEBRUARY 3, 2026 ORANGE ACCOUNT BILL ORIGINAL ADJUSTED FINANCIAL COUNTY TAX NAME NUMBER YEAR VALUE VALUE IMPACT IMPACT REASON FOR ADJUSTMENT Cook,James E 61638 2025 130,900 65,450 (472.61) (417.76) Late application for exemption General Statute 105-277.1 (homestead exemption) Holder,Janice 76058 2025 255,700 127,850 (933.82) (816.06) Late application for exemption General Statute 105-277.1 (homestead exemption) O'Dell,William 12047 2025 475,400 333,800 (1,027.17) (903.83) Late application for exemption General Statute 105-277.1 (homestead exemption) Susan Ayers Prytherch Trustee 290128 2025 341,800 170,900 (2,198.12) (1,090.85) Late application for exemption General Statute 105-277.1 (homestead exemption) Thompson,Ned 162180 2025 160,440 112,420 (426.51) (306.51) Late application for exemption General Statute 105-277.1 (homestead exemption) Total (5,058.23) (3,535.01) *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. January 3,2026 thru January 15,2026 5 Late Application For Exemption Good Cause Information February 3, 2026 NAME ACCOUNT BILL EXEMPTION GOOD CAUSE REASON NUMBER YEAR Cook, James E 61638 2025 HE Wasn't aware of the deadline Holder, Janice 76058 2025 HE Just found out about the program O'Dell, William 12047 2025 HE Unaware of the program Susan Ayers Prytherch Trustee 290128 2025 HE Applied for the wrong program Thompson, Ned 1 162180 2025 IHE 1just found out abut the program November 15, 2025 through January 15, 2026