Agenda 8-f - Refund of Overpayment of Excise Tax

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 22, 2019 Action Agenda Item No. 8-f SUBJECT: Refund of Overpayment of Excise Tax DEPARTMENT: Register of Deeds ATTACHMENT(S): INFORMATION CONTACT: Refund Request Letter from Vernon Law Mark Chilton, 919-245-2679 Firm with: Amy McLamb, 919-245-2677 • Copy of Orange County Recorded Deed, E-recording Report, and Payment Receipt • Copy of Alamance County Recorded Deed and E-recording Report Recorded Corrective Affidavit (Orange County) Orange County GIS Map Relevant NC General Statutes PURPOSE: To consider a refund for overpayment of Excise Tax in the amount of $3,580. BACKGROUND: North Carolina General Statute 105-228.37 sets forth the procedure for requesting a refund of overpayment of excise tax. The statute states "A tax payer who pays more than is due under this article may request a refund of the overpayment by filing a written request for a refund with the board of county commissioners of the county where the tax was paid and must explain why the taxpayer believes a refund is due". On December 17, 2018, the Vernon Law Firm recorded a Deed in Orange County which indicated the amount of $3,580 in excise tax was to be collected. On December 18, 2018 the Vernon Law Firm contacted the Register of Deeds office to explain that the document had been recorded in Alamance County where the excise tax was previously paid, and requested a refund for the excise tax paid to Orange County. In cases where the property lies in multiple counties, the excise tax is paid where the majority of the property lies. However, the Attorney is to provide a statement on the document indicating the excise tax has been paid in another County to prevent overpayment. Without this statement the excise tax is collected in Orange County at the time of recording. It should be noted that the Deed is correctly recorded in both Alamance and Orange counties for the benefit of chain of title, so the recording fees associated with the overall transaction do not need be refunded.