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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: June 13, 2006 <br />Action Agenda <br />Item No. ,rj - V <br />SUBJECT: Property Tax Refund Request <br />DEPARTMENT: Assessor's Office PUBLIC HEARING: (YIN) No <br />ATTACHMENT(S): <br />Draft Resolution of Denial <br />Draft Resolution of Approval <br />03/21/06 Refund Request Letter <br />03/28/06 Assessor Letter <br />04/26/06 Property Owner Letter <br />04/28/06 Assessor Letter <br />INFORMATION CONTACT: <br />John Smith, (919)-245-2101 <br />PURPOSE: To consider adoption of a resolution related to one (1) request for property tax <br />refund. <br />BACKGROUND: The Assessor's Office has received one (1) request from a taxpayer for <br />refund of property taxes paid in prior fiscal years. General Statute 105-381(b), "Action of <br />Governing Body" provides that "upon receiving a taxpayer's written statement of defense and <br />request for release or refund, the governing body of the Taxing Unit shall within 90 days after <br />receipt of such a request determine whether the taxpayer has a valid defense to the tax <br />imposed ar any part thereof and shall either release or refund that portion of the amount that is <br />determined to be in excess of the correct liability or notify the taxpayer in writing that no release <br />or refund will be made". <br />North Carolina law allows the Board to approve property tax refunds far the current and four <br />previous fiscal years. Under GS105-380 "the governing body of a taxing jurisdiction is <br />prohibited from releasing, refunding, or compromising all or any portion of the taxes levied <br />against any property within its jurisdiction except as expressly provided", Per the same statute, <br />any tax that has been refunded in violation of law may be recovered from any members of the <br />governing body who voted for the refund, <br />In this case, the taxpayer has requested a refund for tax years 2001 through 2005, but there is <br />no legal basis for granting a refund, In response to the taxpayer's inquiry, this property was re- <br />visited in February 2006, After review, it was the appraiser's judgment that a reduction in value <br />to the improvement was warranted. For 2006, the valuation of the improvement was reduced. <br />Although the 2006 field review did result in a reduction in value, the General Statutes (GS 105- <br />381)are very clear in defining what can and cannot be refunded. For a refund to be legal, the <br />taxpayer must demonstrate that there was (a) a tax imposed through clerical error; or (b) an <br />illegal tax; or (c) a tax levied for an illegal purpose, <br />