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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: April 1, 2014 <br /> Action Agenda <br /> Item No. 6-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 thirty-four (34) taxpayers with a total of thirty-six (36) bills that will result in a reduction of <br /> 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 /> $4,349.36 to Orange County, the towns, and school and fire districts. Financial impact year to <br /> date for FY 2013-2014 is $71,053.77. <br />