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5 <br /> f <br /> ORANGE COUNTY <br /> Office of the County P.O.BOX 8181 rr R <br /> Attorney 200 S.CAMERON STREET <br /> HILLSBOROUGH,NC 27278 �. 1Cacet��e <br /> MEMORANDUM <br /> TO: Jo Roberson,Tax Administrator <br /> John Smith,Tax Assd sor <br /> FROM: Annette M.Moor At ney <br /> RE: 2009 Refund Requests <br /> DATE: December 4,2009 <br /> This memorandum is in response to your request that the County Attorney's Office provide a legal <br /> review of the nine requests for a refunds of a portion of the tax levied on taxpayer's property under'N.C. <br /> Gen. Stat. § 105-381(a)(3). The taxpayers requesting such a refund must assert in a written statement a <br /> valid defense to the enforcement of the collection of the tax assessed on their property. The General <br /> Statutes provides"valid defenses"to the collection of taxes are: <br /> • A tax imposed through clerical error; <br /> • An illegal tax; <br /> A tax levied for an illegal purpose.t <br /> Case law has fltrther defined what constitutes a valid defense under one of time categories. The term <br /> "clerical error"applies to transcription errors;mistakes in the writing or copying that are unintended but <br /> ordinarily apparent on the face of the instrument. The Court further found that even if a statement is in <br /> error, it is an error of"judgment or law"are not a clerical error under N.C. Gen, Star § 105-381. An <br /> Illegal or invalid tax occurs when a taxing body imposes a tax without authority in cases such as: taxing <br /> property that is legally entitled to an exemption;taxing property that is not within the jurisdictions taxing <br /> authority or taxing property twice.2 A tax levied for some reason other than a public purpose is taxing for <br /> an illegal purpose s <br /> The defenses listed above are the only valid defenses to the collection of tax assessed on a taxpayer's <br /> property provided by the North Carolina General Statutes.a The Board of County Commissioners "is <br /> prohibited from releasing, refunding or compromising all or any portion of the taxes levied against any <br /> N.C.Gen.Slat. §105-381(1) <br /> i Donning,Shoa Riggsbee and Wagner,Gary A.,County and Municipal Government in North Carolina,Atticie id,The <br /> Property lax,University of North Carolina at Chapol Hill,School of Governrnont 2007p.26 See also Redavolopment <br /> Comrnissiorr Y.Guilford County,274 N.C.585,589, 164 S.R.2d 476,479(1968). <br /> 3!d <br /> 4 N.C.Gen.Slat.§ 105-381(1) <br />