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GRANGE CGUNTY <br />BGARD GF CGMMISSIGNERS <br />ACTIGN AGENDA ITEM ABSTRACT <br />Meeting Date: May 3, 2011 <br />Action Agenda <br />Item No. _ ~° <br />a <br />SUBJECT: Motor Vehicle. Propert Tax ReleaselRefunds <br />DEPARTMENT: Tax Administration PUBLIC HEARING: ~YlN~ Nv <br />ATTACHMENT4S}: <br />Resolution <br />ReleaselRefund Data Spreadsheet <br />Reason for Adjustment Summary <br />INF~RMATIGN CGNTACT: <br />Jenkins S, Crayton, 919245-2135 <br />PURPGSE: To consider adoption of a refund resolution related to 36 requests for motor <br />vehicle property tax releases or refunds. <br />BACKGROUND: North Carolina General Statute NCGS} 105-381 ~a}~1 } allows a taxpayer to <br />asserk a valid defense to the enforcement of the collection of a tax assessed upon hislher <br />property under three sets of circumstances: <br />~a} "a tax imposed through clerical error", far example when there is an actual error in <br />mathematical calculation; <br />fib} "an illegal tax", such as when the vehicle should have been billed in another county, an <br />incorrect name was used, or an incorrect rate code the wrong combination of applicable <br />county, municipal, fire district, etc. tax rates} was used; <br />~c} "a tax levied for an illegal purpose", which would involve charging a tax which was later <br />deemed to be impermissible under state law. <br />NCGS 105381 ~b}, "Action of Governing Body" provides that "Upon receiving a taxpayer's <br />written statement of defense and request for release or refund, the governing body of the taxing <br />unit shall within 90 days after receipt of such a request determine whether the taxpayer has a <br />valid defense to the tax imposed or any part thereof and shat[ either release or refund that <br />porkion of the amount that is determined to be in excess of the correct liability or notify the <br />taxpayer in writing that no release or refund will be made". <br />For classified motor vehicles, NCGS 145~334.2~b} allows for a full or parkial refund when a tax <br />has been paid and a pending appeal for valuation reduction due to excessive mileage, vehicle <br />damage, etc. is decided in the owner's favor. <br />FINANCIAL IMPACT: Approval of these releaselrefund requests will result in a net reduction of <br />$5,423.85 to Urange County, the towns, and school and fire districts. Financial impact year to <br />date for FY 2010-2011 is $59,246.99. <br />