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

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: November 20, 2012 Action Agenda Item No. 5-d SUBJECT: Applications for Property Tax Exemption/Exclusion DEPARTMENT: Tax Administration PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Exempt Status Resolution Dwane Brinson, Tax Administrator, Spreadsheet (919) 245-2735 Requests for Exemption/Exclusion PURPOSE: To consider seven (7) untimely applications for exemption/exclusion from ad valorem taxation for the 2012 tax year. BACKGROUND: North Carolina General Statutes (NCGS) require applications for exemption to be filed during the normal listing period, which is during the month of January. Exclusion for Elderly/Disabled, Circuit Breaker, Disabled American Veterans and Agricultural, Horticultural and Forestland exclusion should be filed by June 1St of the tax year being applied. NCGS 105- 282.1(a) (5) does allow some discretion. Upon a showing of good cause by the applicant for failure to make a timely application, an application for exemption or exclusion filed after the close of the listing period may be approved by the Department of Revenue, the board of equalization and review, the board of county commissioners, or the governing body of a municipality, as appropriate. An untimely application for exemption or exclusion approved under this subdivision applies only to property taxes levied by the county or municipality in the calendar year in which the untimely application is filed. Five of the applicants are applying for homestead exclusion based on NCGS 105-277.1, which allows exclusion of the greater of twenty-five thousand dollars ($25,000) or fifty percent (50%) of the appraised value of the residence. Two applicants are applying for agricultural, horticultural and forestland exclusion based on NCGS 105-277.3 which allows for tax relief based on the designated special classes of property under authority of Section 2(2) of Article V of the North Carolina Constitution. The Agricultural horticultural and forestland exclusion is a tax deferral program. Based on the information supplied in the applications and the above referenced General Statutes, the applicants can be approved for 2012. The opinion of the Tax Administrator is the information provided to date satisfies the good cause requirement of NCGS 105-282.1(a)(5) and these properties should be approved for exclusion. FINANCIAL IMPACT: The reduction in the County's tax base associated with approval of these exemption applications will result in a reduction of FY 2012/2013 taxes due to the County, municipalities, and special districts in the amount of$2,457.11. RECOMMENDATION: The Manager recommends the Board approve the attached resolution for these applications for FY 2012/2013 exemption.