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<br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br /> <br />ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date:June 15, 2021 <br /> Action Agenda <br /> Item No. 8-b <br /> <br />SUBJECT: Motor Vehicle Property Tax Releases/Refunds <br /> <br />DEPARTMENT: Tax Administration <br /> <br /> <br />ATTACHMENT(S): <br />Resolution <br />Releases/Refunds Data Spreadsheet <br />Reason for Adjustment Summary <br /> <br /> <br /> <br />INFORMATION CONTACT: <br />Nancy T. Freeman, Tax Administrator, <br />(919) 245-2735 <br /> <br /> <br /> <br /> <br /> <br />PURPOSE: To consider adoption of a resolution to release motor vehicle property tax values for <br />two taxpayers with a total of two bills that will result in a reduction of revenue. <br /> <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 property <br />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 /> <br />NCGS 105-381(b), “Action of Governing Body” provides that “Upon receiving a taxpayer’s written <br />statement of defense and request for release or refund, the governing body of the taxing unit shall <br />within 90 days after receipt of such a request determine whether the taxpayer has a valid defense <br />to the tax imposed or any part thereof and shall either release or refund that portion of the amount <br />that is determined to be in excess of the correct liability or notify the taxpayer in writing that no <br />release or refund will be made”. <br /> <br />For classified motor vehicles, NCGS 105-330.2(b) allows for a full or partial refund when a tax has <br />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 /> <br />FINANCIAL IMPACT: Approval of these release/refund requests will result in a net reduction of <br />$587.22 to Orange County, the towns, and school and fire districts. Financial impact year to date <br />for FY 2020-2021 is $28,910.93. <br />1