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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 -b <br />SUBJECT: Motor Vehicle Property Tax Releases /Refunds <br />DEPARTMENT: Tax Administration PUBLIC HEARING: (Y /N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Resolution Dwane Brinson, Tax Administrator, <br />Releases /Refunds Data Spreadsheet 919 - 245 -2726 <br />Reason for Adjustment Summary <br />PURPOSE: To consider adoption of a resolution to release motor vehicle property tax values <br />for one hundred and thirty -two (132) taxpayers with a total of one hundred and forty (140) bills <br />that will result in a reduction of revenue. <br />BACKGROUND: North Carolina General Statute (NCGS) 105- 381(a)(1) allows a taxpayer to <br />assert a valid defense to the enforcement of the collection of a tax assessed upon his /her <br />property under three sets of circumstances: <br />(a) "a tax imposed through clerical error', for example when there is an actual error in <br />mathematical calculation; <br />(b) "an illegal tax ", such as when the vehicle should have been billed in another county, an <br />incorrect name was used, or an incorrect rate code (the wrong combination of applicable <br />county, municipal, fire district, etc. tax rates) was used; <br />(c) "a tax levied for an illegal purpose ", which would involve charging a tax which was later <br />deemed to be impermissible under state law. <br />NCGS 105- 381(b), "Action of Governing Body" provides that "Upon receiving a taxpayer's <br />written statement of defense and request for release or refund, the governing body of the taxing <br />unit shall within 90 days after receipt of such a request determine whether the taxpayer has a <br />valid defense to the tax imposed or any part thereof and shall either release or refund that <br />portion of the amount that is determined to be in excess of the correct liability or notify the <br />taxpayer in writing that no release or refund will be made ". <br />For classified motor vehicles, NCGS 105- 330.2(b) allows for a full or partial refund when a tax <br />has been paid and a pending appeal for valuation reduction due to excessive mileage, vehicle <br />damage, etc. is decided in the owner's favor. <br />FINANCIAL IMPACT: Approval of these release /refund requests will result in a net reduction of <br />$15,035.90 to Orange County, the towns, and school and fire districts. Financial impact year to <br />date for FY 2013 -2014 is $15,035.90. <br />