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1 <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 5, 2013 <br />Action Agenda <br />Item No. 5 -d <br />SUBJECT: Applications for Property Tax Exemption /Exclusion <br />DEPARTMENT: Tax Administration PUBLIC HEARING: (Y /N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Exempt Status Resolutions (2) Dwane Brinson, Tax Administrator, <br />Spreadsheet (919) 245 -2726 <br />Requests for Exemption /Exclusion <br />PURPOSE: To consider eight (8) untimely applications for exemption /exclusion from ad <br />valorem taxation for seven (7) bills for the 2013 tax year and one (1) for the 2012 tax year. <br />BACKGROUND: North Carolina General Statutes (NCGS) require applications for exemption <br />to be filed during the normal listing period, which is during the month of January. Exclusion for <br />Elderly /Disabled, Circuit Breaker and Disabled American Veterans should be filed by June 1St of <br />the tax year being applied. NCGS 105- 282.1(a)(5) does allow some discretion. Upon a <br />showing of good cause by the applicant for failure to make a timely application, an application <br />for exemption or exclusion filed after the close of the listing period may be approved by the <br />Department of Revenue, the board of equalization and review, the board of county <br />commissioners, or the governing body of a municipality, as appropriate. An untimely application <br />for exemption or exclusion approved under this subdivision applies only to property taxes levied <br />by the county or municipality in the calendar year in which the untimely application is filed. <br />Six (6) of the applicants are applying for homestead exclusion based on NCGS 105 - 277.1, <br />which allows exclusion of the greater of twenty -five thousand dollars ($25,000) or fifty percent <br />(50 %) of the appraised value of the residence plus the value of up to one (1) acre of land. <br />Two (2) of the applicants are applying for exclusion based on NCGS 105-277.1C, which allows <br />for an exclusion of $45,000 for an honorably discharged Disabled American Veteran. <br />Based on the information supplied in the application and the above referenced General <br />Statutes, the applicant may be approved by the Board of County Commissioners. NCGS 105 - <br />282.1(a)(5) permits approvals of such application if good cause is demonstrated by the <br />taxpayer. <br />FINANCIAL IMPACT: The reduction in the County's tax base associated with approval of the <br />exemption applications will result in a reduction of FY 2013/2014 taxes due to the County, <br />municipalities, and special districts in the amount of $8,724.34, and a reduction of FY <br />2012/2013 taxes in the amount of $519.89. <br />RECOMMENDATION: The Manager recommends the Board approve the attached resolutions <br />for the above listed applications for FY 2013/2014 and FY 2012/2013 exemptions. <br />