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HomeMy WebLinkAboutAgenda 03-05-2026; 8-c - Property Tax Releases-Refunds 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 5, 2026 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 eight (8) taxpayers with a total of nine (9) bills that will result in a reduction of revenue. BACKGROUND: The Tax Administration Office has received eight (8) 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 $55,169.75 to Orange County, municipalities, and special districts. Of this total, the impact on the County's portion of the taxes is $35,159.23. The financial impact year to date for FY 2025-2026 is $500,836.02. The Tax Assessor recognized that refunds could impact the budget and accounted for these in the annual budget projections. 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. 2 NORTH CAROLINA RES-2026-015 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 Refand/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 12026 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 5, 2026 ORANGE COUNTY ACCOUNT BILL ORIGINAL ADJUSTED FINANCIAL TAX NAME NUMBER YEAR VALUE VALUE IMPACT IMPACT REASON FOR ADJUSTMENT ADDITIONAL INFORMATION Dillard,Jordan Trae 3221179 2024 7,140 0 $271.43 $189.97 Assessed in error(illegal tax Gap Bill:Vehicle situs address is Alamance Count Hurstin ,Laurie Megan 3224343 2025 4,470 0 ($206.02) ($102.24)Assessed in error(illegal tax) Gap Bill:Vehicle registered in Maryland during the gap period Kelly,Aaron 3205217 2025 195,859 31,546 $1,260.61 $1,048.81 Incorrect value clerical error 23.39 acres assessed at market value instead of agricultural value Gap Bill:No true gap,taxpayer transferred plate from trade in;DMV processed transfer by issuing a new plate and then cancelling the Mendez,Camilo Manuel 3221932 2025 20,770 0 $280.70 $132.57 Assessed in error illegal tax newly issued plate Merritt,James Robert 3219962 2025 8,780 0 $117.98 $88.39 Assessed in error(illegal tax Gap Bill:Vehicle registered in New Jersey during a eriod Merritt,James Robert 3219963 2025 29,030 0 $390.10 $292.25 Assessed in error(illegal tax Gap Bill:Vehicle registered in New Jersey during gap period Business Personal Property CIP was reported in both Orange and S re Inc 3222374 2025 6,966,546 1,840,332 $51,687.62 $32,720.62 Assessed in error(illegal tax Cumberland Counties,situs is Cumberland Vereen,Florence Marie Long 3219049 2025 84,843 0 $269.49 $244.04 Assessed in error(illegal tax Gap Bill:No true gap,taxpayer switched to vanity plate Winkler,Steven Eric 3224201 2025 4,960 0 $685.80 $340.34 Assessed in error(illegal tax) Gap Bill:Vehicle registered in California and Texas during gap perio Total ($55,169.75) ($35,159.23) 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 16,2026 thru February 13,2026