Orange County NC Website
ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: January 23, 2018 <br />SUBJECT: Motor Vehicle Property Tax Releases /Refunds <br />DEPARTMENT: Tax Administration <br />ATTACHMENT(S): <br />Resolution <br />Releases /Refunds Data Spreadsheet <br />Reason for Adjustment Summary <br />Action Agenda <br />Item No. 8 -b <br />INFORMATION CONTACT: <br />Dwane Brinson, Tax Administrator, <br />(919) 245 -2726 <br />1 <br />PURPOSE: To consider adoption of a resolution to release motor vehicle property tax values <br />for seven taxpayers with a total of seven bills that will result in a reduction of revenue. <br />BACKGROUND: North Carolina General Statute (NCGS) 105- 381(a)(1) allows a taxpayer to <br />assert a valid defense to the enforcement of the collection of a tax assessed upon his /her <br />property under three sets of circumstances: <br />(a) "a tax imposed through clerical error ", for example when there is an actual error in <br />mathematical calculation; <br />(b) "an illegal tax ", such as when the vehicle should have been billed in another county, an <br />incorrect name was used, or an incorrect rate code (the wrong combination of applicable <br />county, municipal, fire district, etc. tax rates) was used; <br />(c) "a tax levied for an illegal purpose ", which would involve charging a tax which was later <br />deemed to be impermissible under state law. <br />NCGS 105- 381(b), "Action of Governing Body" provides that "Upon receiving a taxpayer's <br />written statement of defense and request for release or refund, the governing body of the taxing <br />unit shall within 90 days after receipt of such a request determine whether the taxpayer has a <br />valid defense to the tax imposed or any part thereof and shall either release or refund that <br />portion of the amount that is determined to be in excess of the correct liability or notify the <br />taxpayer in writing that no release or refund will be made ". <br />For classified motor vehicles, NCGS 105- 330.2(b) allows for a full or partial refund when a tax <br />has been paid and a pending appeal for valuation reduction due to excessive mileage, vehicle <br />damage, etc. is decided in the owner's favor. <br />FINANCIAL IMPACT: Approval of these release /refund requests will result in a net reduction of <br />$1,840.87 to Orange County, the towns, and school and fire districts. Financial impact year to <br />date for FY 2017 -2018 is $5,696.03. <br />