Agenda - 09-06-2016 - 6-d - Applications for Property Tax Exemption Exclusion

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 6, 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 sixteen untimely applications for exemption/exclusion from ad valorem taxation for sixteen bills for the 2016 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. Twelve of the applicants are applying for homestead exclusion based on NCGS 105-277.1, which allows exclusion of the greater of$29,500 or 50% of the appraised value of the residence. One applicant is applying for Circuit Breaker exclusion based on NCGS 105-277.1B which allows for tax relief based on income. The Circuit Breaker exclusion is a tax deferral program. Three of the applicants are applying for exclusion based on NCGS 105-277.1 C, which allows for an exclusion of $45,000 for an honorably discharged Disabled American Veteran. Including these sixteen applications, the Board will have considered a total of sixteen untimely applications for exemption of 2016 taxes since the 2016 Board of Equalization and Review adjourned on May 26th. Taxpayers may submit an untimely application for exemption of 2016 taxes to the Board of Commissioners through December 31, 2016. Based on the information supplied in the application and based on the above-referenced General Statutes, the application 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.