Agenda - 04-24-2007-4d - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 24, 2007 Action Agenda Item No. ~- -,~ SUBJECT: Property Tax Releases DEPARTMENT: Assessor's Office PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Resolution Spreadsheet INFORMATION CONTACT: John Smith, 245-2101 PURPOSE: To consider adoption of a resolution to release property values related to two (2) requests for property tax release. BACKGROUND:. The Assessor's Office is requesting approval to release property values related to two (2) requests for property tax release. (see explanations on attached spreadsheet). One of the releases have no "financial impact" since they are releases of Land Use deferred tax bills requested by an attorney in error. These bills were put in the tax levy to cover the three years of back taxes plus interest that have to be paid when land in the "Land Use Program" comes out of the program. Back taxes and interest being released under the name of Vergie Womble HRS Jr. total $2,986.07. These deferred tax bills artificially expanded the tax levy since they should not have ever been part of the tax levy. Release of these deferred bills is equivalent to an accounting process that allows the levy to return to its proper level and therefore the listed financial impact is "$0.00". General Statute 105-381(b), "Action of Governing Body" provides that "upon receiving a taxpayer's written statement of defense and request for release or refund, the governing body of the Taxing Unit shall within 90 days after receipt of such a request determine whether the taxpayer has a valid defense to the tax imposed or any part thereof and shall either release or refund that portion of the amount that is determined to be in excess of the correct liability or notify the taxpayer in writing that no release or refund will be made". North Carolina law allows the Board to approve property tax releases for the current and four previous fiscal years. FINANCIAL IMPACT: Approval of these changes will result in a net reduction in revenue of $1,533.17 to the County, municipalities, and special districts. For fiscal year 2006/2007, the total net reduction in revenues is $74,296.88. The Tax Assessor recognized that releases and Property Tax Commission decisions can impact the budget and accounts for these in the annual budget projections. RECOMMENDATION(S): The Manager recommends that the Board approve the attached resolution approving two (2) property tax release requests in accordance with N.C. General Statute 105-381.