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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 1, 2010 <br />Action Agenda <br />Item No._ <br />-SUBJECT: Property Tax Refund Request <br />DEPARTMENT: Tax Administration PUBLIC HEARING: (Y /N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Jo Roberson, 245 -2727 <br />Resolution <br />04/02/2010 Refund Request Letter <br />04/12/2010 Refund Denial Letter <br />PURPOSE: To consider adoption of a refund resolution related to one (1) request for property <br />tax refund. <br />BACKGROUND: The Tax Administration Office has received one (1) request from a taxpayer <br />for refund of property taxes paid in a prior fiscal year. North Carolina General Statute 105 - <br />381(b), "Action of Governing Body" provides that "upon receiving a taxpayer's written statement <br />of defense and request for release or refund, the governing body of the Taxing Unit shall within <br />90 days after receipt of such a request determine whether the taxpayer has a valid defense to <br />the tax imposed or any part thereof and shall either release or refund that portion of the amount <br />that is determined to be in excess of the correct liability or notify the taxpayer in writing that no <br />release or refund will be made ". North Carolina law allows the Board to approve property tax <br />refunds for the current and four previous fiscal years. <br />Under North Carolina General Statute 105 -380, "the governing body of a taxing jurisdiction is <br />prohibited from releasing, refunding, or compromising all or any portion of the taxes levied <br />against any property within its jurisdiction except as expressly provided ". Per the same statute, <br />any tax that has been refunded in violation of law may be recovered from any members of the <br />governing body who voted for the refund. <br />In this case, the taxpayer has requested a refund for tax years 2005 through 2009, but there is <br />no legal basis for granting a refund. In response to the taxpayer's inquiry, this property was re- <br />visited in 2010. After review, it was the appraiser's judgment that a reduction in value for the <br />current year was warranted. <br />Although the 2010 field review did result in a reduction in value, the General Statutes (GS 105- <br />381) very clearly define the standards for refunds. For a refund to be legal, the taxpayer must <br />demonstrate that there was (a) a tax imposed through clerical error; (b) an illegal tax; or (c) a <br />tax levied for an illegal purpose. <br />