Agenda - 09-18-2012 - 5d - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 18, 2012 Action Agenda Item No. 5 -d SUBJECT: 2012 Property Tax Releases DEPARTMENT: Tax Administration PUBLIC HEARING: (Y /N) No ATTACHMENT(S): Resolution Spreadsheet INFORMATION CONTACT: Dwane Brinson, Tax Administrator, (919) 245 -2109 PURPOSE: To consider adoption of a resolution to release property values related to one hundred eighty -three (183) requests for property tax release. BACKGROUND: The Tax Administration Office has found one hundred eighty -three (183) tax notices which require a release or refund of property taxes for the current fiscal year. There were several factors that caused these errors during the annual billing process. Fifty -nine of the erroneous bills were created on closed or inactive parcels. Fifty -eight of these corrections are due to system errors that created bills on exempt properties. Twenty -six of the bills were created based on values that reverted back to previously used values due to system error. Twenty -seven were errors on business personal property listing issues. Thirteen of the bills were not in Orange County jurisdiction. These incorrect bills and values were not expected and thus were not included in budget projections. After the annual billing of taxes, counties make corrections, according to law, to notices generated by clerical errors. 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 releases and refunds for the current and four previous fiscal years. FINANCIAL IMPACT: Since the tax amounts on these notices were not budgeted, the approval of this change will not result in a reduction of expected revenues. The total reduction in this un- anticipated revenue is $343,602.38 for the County, municipalities, and special districts. RECOMMENDATION(S): The Manager recommends the Board approve the attached resolution approving these property tax release and refund requests in accordance with North Carolina General Statute 105 -381.