Agenda - 04-04-2023; 8-d - Late Applications for Property Tax Exemption Exclusion

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: April 4, 2023 Action Agenda Item No. 8-d SUBJECT: Late Applications for Property Tax Exemption/Exclusion DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Exempt Status Resolution Nancy Freeman, Tax Administrator, Spreadsheet (919) 245-2735 Requests for Exemption/Exclusion PURPOSE: To consider one (1) untimely application for exemption/exclusion from ad valorem taxation for one (1) bill for the 2022 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 1St 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. One applicant is applying for exclusion based on NCGS 105-278.3, which allows for exclusion from property taxes for property used for a religious purpose. Including this one application, the Board will have considered a total of fifty-nine untimely applications for exemption of 2022 taxes since the 2022 Board of Equalization and Review adjourned on June 30, 2022. Taxpayers may submit an untimely application for exemption of 2022 taxes to the Board of Commissioners through December 31, 2022. FINANCIAL IMPACT: The reduction in the County's tax base associated with approval of the exemption application will result in a reduction of FY 2022/2023 taxes due to the County, municipalities, and special districts in the amount of $8,165.60.