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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: February 5, 2008 <br />Action Agenda <br />Item No. 4 -G <br />SUBJECT: Applications for Property Tax Exemption/Exclusion <br />DEPARTMENT: Assessor PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />John Smith, 245-2101 <br />Exempt Status Resolution <br />Spreadsheet <br />Requests for Exemption/Exclusion <br />PURPOSE: To consider three (3) untimely applications for exemption/exclusion from ad <br />valorem taxation for the 2007 tax year. <br />BACKGROUND: North Carolina General Statutes state that applications for exemption must be <br />filed during the normal listing period, which is during the month of January. NCGS 105- <br />282.1(a)(5) does allow some discretion. Upon a showing of good cause by the applicant for <br />failure to make a timely application, an application for exemption or exclusion filed after the <br />close of the listing period may be approved by the Department of Revenue, the board of <br />equalization and review, the board of county commissioners, or the governing body of a <br />municipality, as appropriate. An untimely application for exemption or exclusion approved, under <br />this subdivision applies only to property taxes levied by the county or municipality in the <br />calendar year in which the untimely application is filed. <br />One (1) applicant is applying for property tax exemption for a religious purpose. NCGS 105- <br />278.3 recognizes that buildings and the land they occupy shall be exempt from taxation if wholly <br />owned and exclusively used for religious purposes. Additionally, two (2) applicants are applying <br />for homestead exclusion based on NCGS 105-277.1, which allows exclusion of the greater of <br />twenty thousand dollars ($20,000) or fifty percent (50%) of the appraised value of the residence. <br />Based on the information supplied in the current application and the above referenced general <br />statutes the applicants can be approved for 2007. The opinion of the Assessor is that the <br />information provided to date satisfies the good cause requirement of NCGS 105-282.1(a)(5) and <br />that the three (3) properties should be approved for exclusion. One of the two (2) homestead <br />applicants gained knowledge of the benefit from inserts in the 2007 tax bills. <br />There are currently 1,970 parcels totally exempt from taxation. Additionally, with the approval of <br />the above two (2) homestead applications, there are 891 parcels receiving a homestead <br />exclusion for the 2007 tax year. <br />FINANCIAL IMPACT: The reduction in the County's tax base associated with approval of the <br />exemption applications will result in a reduction of 2007 taxes due to the County, municipalities,