Agenda - 06-04-2013 - 7c - Laserfiche WebLink

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Property Tax Bulletin 15 5. How many years of taxes can be released or refunded? Different rules apply depending on whether the taxpayer seeks a refund of paid taxes or a release of unpaid taxes. Refunds are limited to the later of (1) five years from the tax's original due date and (2) six months from the date the taxes are paid. Releases of unpaid taxes may be granted at any time. For example, assume that Carolina County improperly levies taxes for 2005 -9 on a boat that Tina Taxpayer keeps permanently moored in Ocean County. These taxes are illegal and justify relief under G.S. 105 -381. If Tina has never paid the boat taxes to Carolina County, she can obtain a release of the taxes and interest at any time. She can ask for a release immediately upon discovering the mistake in 2010 or wait years to submit her request; either way, Tina will be entitled to a full release as long as the taxes have not been paid. If Tina has been paying the Carolina County taxes punctually each year, then the refund rules apply. Tina can obtain a refund for all taxes that were originally due within five years of her refund request. Her 2005 taxes were due on September 1, 2005; as long as she requests a refund before September 2, 2010, she is entitled to a refund of the 2005 taxes and all subsequent taxes. If Tina submits her request after September 1, 2010, she cannot obtain a refund of the 2005 taxes. The six months from payment provision will apply if Tina learns of the Carolina County taxes in 2010 and pays in full for the years 2005 -9 on June 1, 2010. In this case, six months from the date of payment (December 1, 2010) will be later than five years from the tax's original due date (September 1, 2010). Tina will, therefore, have until December 1, 2010, to request a refund of the 2005 taxes. 6. If the governing board denies a request for a refund or release, does the taxpayer have the right to appeal that decision? Yes. If the governing board denies the taxpayer's request or fails to act on the request within ninety days, the taxpayer has the right to bring a civil action in state court within three years." The taxpayer must pay the disputed taxes before initiating a lawsuit if the request is for a release. If the taxpayer prevails, the taxing jurisdiction must refund the disputed taxes plus six percent interest, as well as all costs and attorneys' fees incurred by the taxpayer. 7. Does G.S. 105 -381 govern the refund or release of other taxes or fees collected by a local government? No. In addition to property taxes, local governments are authorized to levy a variety of taxes on activities ranging from owning a pet to selling alcohol to renting cars. All of these taxes may be collected using Machinery Act remedies of attachment, garnishment, and levy." However, none of the authorizing statutes for these various taxes specifically incorporates the Machin- ery Act refund and release provisions. Local governments are, therefore, free to develop their own refund and release policies for taxes other than property taxes or can choose to adopt 15. G.S. 105- 381(c). 16. G.S. 153A -147 (counties) and G.S. 160A -207 (municipalities). © 2010 School of Government. The University of North Carolina at Chapel Hill