Agenda - 04-19-2016 - 7-b - Establishment of a Policy to Provide the Board of Equalization and Review Guidance on the Imposition of Penalties

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2 DRAFT Section I: Tax Administration Policy 1.0: Reviewed by: County Attorney/Tax Administrator Approved by: Board of County Commissioners Original Effective Date: April 19, 2016 Revisions: Policy Statement It is the policy of Orange County to provide fair and equitable treatment to all residents of Orange County. Purpose To provide an administrative guide whereby the Board of Equalization and Review may fairly and equitably exercise compromise authority. Applicability Applies to all cases in which the Board of Equalization and Review may, subject to the provisions of NCGS 105-312(k), compromise the imposition of penalties. Procedure 1.1 Circumstances in which the Board of Equalization and Review may compromise are set out in this section 1.1. 1.1.1 Economic Hardship. In situations in which the taxpayer has suffered economic hardship that has severely impacted the taxpayer's ability to pay including but not limited to; a sudden serious illness of the taxpayer or a member of the taxpayer's immediate family(parent, spouse, or child of the taxpayer), the death of the taxpayer or a member of the taxpayer's immediate family, a natural disaster such as a tornado,hurricane, fire, or accident that destroyed property and records. 1.1.2 Fairness. In situations in which the taxpayer's tax payment was delayed or late either entirely through the verifiable fault of a third party or in which a preponderance of the cause of delay rests with a third party and not with the taxpayer. 1.1.3 Inequality. In situations in which a taxpayer in a similar or like situation received a compromise and failure to compromise would result in a significantly unequal impact to the taxpayer. 1.1.4 Special Circumstances. Circumstances specific to the taxpayer that,when observed and considered by a reasonable and uninterested person,would appear to warrant a compromise of an otherwise appropriate penalty. 1.2 Exceptions shall be made in some situations as provided in this section. 1.2.1 Penalties that are assessed as a result of a delay in payment caused by unsuccessful strategies engaged by the taxpayer that intentionally seek to lower the valuation of taxpayer's property or direct the revenue outside Orange County may not be compromised. 1.3 The burden is on the taxpayer to demonstrate by competent evidence he or she meets the requirements for one or more of the reasons for compromise listed in section 1.1. This policy may be reviewed annually and updated as needed by the Attorney's and Tax Administrator's Offices subject to approval by the Board of County Commissioners.