Agenda 8-d - Applications for Property Tax Exemption Exclusion

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 4, 2018 SUBJECT: Applications for Property Tax Exemption /Exclusion DEPARTMENT: Tax Administration ATTACHMENT(S): Exempt Status Resolution Spreadsheet Requests for Exemption /Exclusion Action Agenda Item No. 8 -d INFORMATION CONTACT: Dwane Brinson, Tax Administrator, (919) 245 -2726 1 PURPOSE: To consider fifteen (15) untimely applications for exemption /exclusion from ad valorem taxation for twenty -three (23) bills for the 2018 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 1s` of the tax year for which the benefit is requested. NCGS 105- 282.1(a1) 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. Eight of the applicants are applying for homestead exclusion based on NCGS 105 - 277.1, which allows exclusion of the greater of $25,000 or 50% of the appraised value of the residence. One of the applicants is applying for exemption based on NCGS 105 -278.2 which allows for exemption of real property set apart for burial purposes unless it is owned and held for purposes of sale or rental. Three of the applicants, with a total of eleven bills, are applying for exemption based on NCGS 105 - 278.6(8), which allows an exemption of a nonprofit organization providing housing for individuals or families with low or moderate incomes. One of the applicants is 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.