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— _ — _ �P,:" �7 <br /> �. <br /> ° '' Attachment 7 � <br /> #j�ii' � ''F � �. ? � <br /> � <br /> _ � <br /> _ �� �y� <br /> - � � � <br /> - - i �( <br /> '` �, l� <br /> -- -- - - -- � "£�� t <br /> PROPERTY TAX BULLETIN N0. 153 �APRIL 2010 ` <br /> Refunds and Releases <br /> Christopher B.McLaughlin <br /> Few issues carry a greater potential for conflict between taxpayers and tax offices than do <br /> requests for refunds or waivers of property taxes. This is true in large part because the Machin- <br /> ery Act allows refunds and waivers only under two very limited circumstances.Unless the <br /> disputed tax is imposed due to clerical error or is illegal,the Machinery Act prohibits the refund <br /> of a tax payment or the waiver—called a"release"in the Machinery Act—of an unpaid tax <br /> obligation. Contrary to what many taxpayers believe,the refund and release process is not the <br /> venue for a re-examination of a property's value or taxable status.Although some governing <br /> boards desire to be more forgiving on these issues,they do so at their peril:board members who <br /> approve refunds or releases that violate the Machinery Act can be held personally responsible <br /> for the lost taxes.l <br /> 1.Who may approve refunds and releases? <br /> 1he governing board, always. The local government's manager, attorney, or finance officer, some- <br /> times.But the tax collector,never. <br /> G.S. Section 105-381(b) of the North Carolina General Statutes (hereinafter G,S.) gives the <br /> governing board primary responsibility for approving refund and release requests. For refunds <br /> and releases of less than$100,the board may delegate this responsibility to the manager, attor- <br /> ney, or fiiiance of�'icer,who must then report monthly to the board on the actions tal<en. Con- <br /> spicuously absent from this list is the tax collector. In practice some tax collectors grant small <br /> refunds or releases and then seel<approval from the board,but this is a risl<y approach. <br /> Once a refund or release is approved by the board or its delegate,the tax collector should be <br /> credited with that amount in the next annual settlement.2 <br /> � � <br /> 4 �.�V r�, <br /> Y�,,,g�.�� t`"� .d f r <br /> ��`����d`��6 c b � "k` � I <br /> � ? <br /> , �,�- ��a�`�''a`'',�,. c,�,. <br /> �.�u <br /> � I <br /> � <br /> I <br /> Christopher B.McLaughlin is a School of Government faculty member who specializes in local taxation. I <br /> 1.N.C.GErr.ST�.T. (hereinafter G.S,)§105-380(c), f <br /> 2. G.S, 105-381(b). <br /> 1 <br /> O 2010 Schoot of Government.The University of North Carolina at Chapel Hill <br />