Agenda - 11-20-2012 - 5c - Laserfiche WebLink

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r • 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 20, 2012 Action Agenda Item No. 5-c SUBJECT: Property Tax Releases/Refunds DEPARTMENT: Tax Administration PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Resolution Dwane Brinson, Tax Administrator, Spreadsheet . (919) 245-2109 PURPOSE: To consider adoption of a resolution to release property tax values for twenty-five (25) taxpayer requests that will result in a reduction of revenue. BACKGROUND: The Tax Administration Office has received twenty-five (25) requests from a taxpayer for refund of property taxes paid in prior fiscal years. 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 $61,117.95 to the County, municipalities, and special districts. The Tax Assessor recognized that refunds could impact the budget and accounted for these in the annual budget projections. The total amount of this request is $181,670.87, but of this amount, $120,552.92 represents a keying error that was not included in the tax base calculations, and therefore has no financial impact. It should also be noted that staff identified this keying error internally and the taxpayer did not receive a bill for the incorrect amount. RECOMMENDATION(S): The Manager recommends the Board approve the attached resolution approving these property tax release/refund requests in accordance with North Carolina General Statute 105-381.