Agenda - 03-02-2006-5d - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 2, 2006 Action Agenda Item No. ~~ SUBJECT: 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 five (5) requests for property tax release. BACKGROUND: 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 ar 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- The Assessor's Office is requesting approval to release property values related to five (5) requests for property tax release. Explanations are provided on the attached spreadsheet. Two of the releases involve Land Use deferred tax bills that were requested, in error, by the property owners. The tax bills were requested by the owners in anticipation of land sales that were not consummated. 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 Jean Francis totals $22,072.06, and under the name of Kermit Lloyd the total released is $8,660,47. 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 -therefore, the listed financial impact is "$0.00". FINANCIAL IMPACT: Approval of this change will result in a net reduction in revenue of $17,364.61 to the County, municipalities, and special districts. RECOMMENDATION(S): The Manager recommends that the Board approve the attached resolution approving five (5) property tax release requests in accordance with N.C. General Statute 105-381.