Orange County NC Website
1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: June 18, 2013 <br /> Action Agenda <br /> Item No. 7-d <br /> SUBJECT: Refund Requests for Inaccurate Square Footage Calculation <br /> DEPARTMENT: Tax Administration PUBLIC HEARING: (Y/N) No <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Taxpayer Requests for Refunds Dwane Brinson, Tax Administrator, (919) <br /> Bulletin on Refunds and Releases 245-2726 <br /> Refund Release Blog John Roberts, County Attorney, (919) <br /> Excerpt from County's 2013 Legislative 245-2318 <br /> Agenda Frank Clifton, County Manager, (919) 245- <br /> 2300 <br /> PURPOSE: To consider five taxpayers' refund requests due to inaccurate square footage. <br /> BACKGROUND: North Carolina General Statute (NCGS) 105-381 allows taxpayers to appeal <br /> to the governing body for a release or refund of taxes due or already paid. A valid defense is: <br /> (a) a tax imposed through clerical error; (b) an illegal tax; (c) a tax levied for an illegal purpose. <br /> The statute also recognizes two different situations: one where the taxpayer has already paid <br /> the tax under appeal and the other where the taxpayer has yet to pay the tax. Each taxpayer <br /> included in this abstract has paid in full the tax under appeal. In addition, the property record <br /> card for each of these parcels was corrected from the time the error was discovered moving <br /> forward. Paraphrased, 105-381(a)(3) affords taxpayers who present a successful statement of <br /> defense relief for up to five years of taxes paid. Multiple requests herein demand refund for <br /> greater than five years, but under no circumstance is such supported by state law. <br /> Mr. Chris McLaughlin at the UNC School of Government has opined that requests such as <br /> those presented to the Board are not supported by state law. A recent blog and a Property Tax <br /> Bulletin from Mr. McLaughlin, both attached, are leaned upon heavily for staff's <br /> recommendation to the Board. In summary, it is opined that square footage differences may be <br /> assessment errors and, as such, would not qualify as either a clerical error or an illegal tax. <br /> Moreover, NC General Statute 105-322 affords taxpayers an annual opportunity to appeal his or <br /> her tax record and assessment. Such annual requests are mutually exclusive, too. <br /> The County Attorney notes that, as stated above, North Carolina General Statute 105-381 <br /> provides limited statutory reasons whereby a county governing board may lawfully refund taxes. <br /> The statutory reason that comes nearest to these situations is one of "clerical error". However, <br /> the North Carolina Court of Appeals in the 1997 case of Ammons v. Wake County defined <br /> clerical error as something readily apparent on the face of the instrument. This is interpreted as <br /> being a typographical error or an error of transposition, not an error of judgment, or a lack of <br /> documented available information to amend the tax record. <br />