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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: December 10, 2013 <br /> Action Agenda <br /> Item No. 6-c <br /> SUBJECT: 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 /> Spreadsheet (919) 245-2726 <br /> Health Systems Properties, LLC <br /> Memorandum of Understanding <br /> PURPOSE: To consider adoption of a resolution to release property tax values for four (4) <br /> taxpayers with a total of six (6) bills that will result in a reduction of revenue. <br /> BACKGROUND: The Tax Administration Office has received four taxpayer requests for release <br /> or refund of property taxes. North Carolina General Statute 105-381(b), "Action of Governing <br /> Body" provides that "upon receiving a taxpayer's written statement of defense and request for <br /> release or refund, the governing body of the Taxing Unit shall within 90 days after receipt of <br /> such a request determine whether the taxpayer has a valid defense to the tax imposed or any <br /> part thereof and shall either release or refund that portion of the amount that is determined to <br /> be in excess of the correct liability or notify the taxpayer in writing that no release or refund will <br /> be made". A refund occurs when a tax bill has already been paid. A release occurs when a tax <br /> bill remains due, and such action creates an adjustment to the outstanding tax bill. <br /> Three of the requests are for Health System Properties, LLC. In January 2012, a Memorandum <br /> of Understanding (MOU) was created between Health Systems Properties, LLC and Orange <br /> County, but the MOU was not implemented at that time. The MOU established that Health <br /> System Properties, LLC would pay to the Tax Office a sum of $18,205.73 in 2011 and future <br /> years. These payments would be in lieu of paying a tax bill based on the true property value as <br /> Health Systems Properties, LLC is exempt from property taxes under North Carolina law. <br /> These two requests create a $149,936.12 refund for the two previously paid tax bills (2011 and <br /> 2012). Contingent upon approval of this item, the County would provide a check with the refund <br /> to Health System Properties LLC. <br /> The third request for Health System Properties, LLC would result in an adjustment to the 2013 <br /> unpaid bill to lower the amount due by $78,404.34, per the MOU. To make these reductions, <br /> and fulfill the agreed-upon amounts due, assessed values for 2011, 2012, and 2013 should be <br /> reduced as shown on the accompanying spreadsheet. <br /> It should also be noted that Health System Properties, LLC did provide the County with the <br /> agreed upon amount as outlined in the MOU of $18,205.73 in both 2011 and 2012. Staff <br /> understands that the 2013 payment will be made following resolution of these requests. <br />