Agenda 8-d - Applications for Property Tax Exemption Exclusion

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: March 7, 2019 Action Agenda Item No. 8-d SUBJECT: Applications for Property Tax Exemption/Exclusion DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Exempt Status Resolution Dwane Brinson, Tax Administrator, Spreadsheet (919) 245-2726 Requests for Exemption/Exclusion PURPOSE: To consider three untimely applications for exemption/exclusion from ad valorem taxation for three 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. Two 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 exclusion based on NCGS 105-278, which allows for an exclusion of real property designated as a historic property by a local ordinance adopted pursuant to former G.S 160A-399.4 or designated as a historical landmark by a local ordinance adopted pursuant to G.S. 160A-400.5. This is a designation for a special class of property under authority of Article V, Sec. 2(2) of the North Carolina Constitution. Including these three applications, the Board will have considered a total of sixty-three (63) untimely applications for exemption of 2018 taxes since the 2018 Board of Equalization and Review adjourned on June 14, 2018. Taxpayers may submit an untimely application for exemption of 2018 taxes to the Board of Commissioners through December 31, 2018.