Orange County NC Website
Browse       Search
24 I <br /> 6 PropertyTax Bulletin <br /> f <br /> � <br /> � <br /> � <br /> 5. How many years of taxes can be released or refunded? � iEE, <br /> Different rules apply depending on whether the taxpayer seel<s a refund of paid taxes or a release � <br /> �i <br /> of unpaid taxes. Refunds are limited to the later of(1) five years from the tax's original due date � <br /> and(2) six months from the date the taxes are paid.Releases of unpaid taxes may be granted at <br /> any time. <br /> For example, assume that Carolina County improperly levies taxes for 2005-9 on a boat that <br /> Tina Taxpayer 1<eeps permanently moored in Ocean County. These taxes are illegal and justify <br /> relief under G.S. 105-381,If Tina has never paid the boat taxes to Carolina County,she can <br /> obtain a release of the taxes and interest at any time. She can asl<for a release immediately upon <br /> discovering the mistal<e in 2010 or wait years to submit her request; either way, Tina will be <br /> entitled to a full release as long as the taxes have not been paid. <br /> If Tina has been paying the Carolina County taxes punctually each year,then the refund <br /> rules apply. Tina can obtain a refund for all taxes that were originally due within five years of <br /> her refund request.Her 2005 taxes were due on September 1, 2005; as long as she requests a <br /> refund before September 2,2010, she is entitled to a refund of the 2005 taxes and all subsequent <br /> taxes, If Tina submits her request after September 1,2010,she cannot obtain a refund of the <br /> 2005 taxes. <br /> 1he six months from payment provision will apply if Tina learns of the Carolina County taxes <br /> in 2010 and pays in full for the years 2005-9 on June 1, 2010, In this case, six months from the <br /> date of payment(December l,2010)will be later than five years from the tax's original due date <br /> (September 1, 2010). Tina will, therefore,have until December 1, 2010,to request a refund of the <br /> 2005 taxes. <br /> 6. If the governing board denies a request for a refund or <br /> release,does the taxpayer have the right to appeal that decision? <br /> Yes.If the governing board denies the taxpayer's request or fails to act on the request within <br /> ninety days, the taxpayer has the right to bring a civil action in state court within three years.ls <br /> The taxpayer must pay the disputed taxes before initiating a lawsuit if the request is for a release. <br /> If the taxpayer prevails, the taxing jurisdiction must refund the disputed taxes plus six percent <br /> interest, as well as all costs and attorneys'fees incurred by the taxpayer. <br /> 7. Does G.S. 105-381 govern the refund or release <br /> of other taxes or fees collected by a local government? <br /> No.In addition to property taxes,local governments are authorized to levy a variety of taxes <br /> on activities ranging from owning a pet to selling alcohol to renting cars.All of these taxes may <br /> be collected using Machinery Act remedies of attachment, garnishment, and levy.16 However, <br /> none of the authorizing statutes for these various taxes specifically incorporates the Machin- '; <br /> ery Act refund and release provisions.Local governments are,therefore,free to develop their ; <br /> own refund and release policies for taxes other than property taxes or can choose to adopt ; <br /> 15,G.S. 105-381(c). <br /> 16.G,S. 153A-147(counties)and G.S. 160A-207(municipalities). <br /> O 2010 School of Government.The University of North Carolina at Chapel Hill <br />