Agenda - 03-01-2016 - 6-d - Applications for Property Tax Exemption Exclusion

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 1, 2016 Action Agenda Item No. 6-d SUBJECT: Applications for Property Tax Exemption/Exclusion DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Exempt Status Resolution Dwane Brinson, Tax Administrator, Spreadsheet (919) 245-2726 Requests for Exemption/Exclusion PURPOSE: To consider two (2) untimely applications for exemption/exclusion from ad valorem taxation for two (2) bills for the 2015 tax year. BACKGROUND: North Carolina General Statutes (NCGS) typically require applications for exemption to be filed during the listing period, which is usually during the month of January. Applications for Elderly/Disabled Exclusion, Circuit Breaker Tax Deferment and Disabled Veteran Exclusion should be filed by June 1st of the tax year for which the benefit is requested. NCGS 105-282.1(al) does allow some discretion. Upon a showing of good cause by the applicant for failure to make a timely application, an application for exemption or exclusion filed after the close of the listing period may be approved by the Department of Revenue, the Board of Equalization and Review, the Board of County Commissioners, or the governing body of a municipality, as appropriate. An untimely application for exemption or exclusion approved under this provision applies only to property taxes levied by the county or municipality in the calendar year in which the untimely application is filed. Including these two (2) applications, the Board will have considered a total of eighty-two (82) untimely applications for exemption of 2015 taxes since the 2015 Board of Equalization and Review adjourned on May 28th. Taxpayers may submit an untimely application for exemption of 2015 taxes to the Board of Commissioners through December 31, 2015. The two applicants are applying for homestead exclusion based on NCGS 105-277.1, which allows exclusion of the greater of twenty-five thousand dollars ($25,000) or fifty percent (50%) of the appraised value of the residence. Based on the information supplied in the applications and based on the above-referenced General Statutes, the applications may be approved by the Board of County Commissioners. NCGS 105-282.1(al) permits approval of such application if good cause is demonstrated by the taxpayer. FINANCIAL IMPACT: The reduction in the County's tax base associated with approval of the exemption application will result in a reduction of FY 2015/2016 taxes due to the County, municipalities, and special districts in the amount of$1,251.88.