Agenda - 06-20-2023; 8-d - Tax Refund Request – Walker Hall Busby, Jr.

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 20, 2023 Action Agenda Item No. 8-d SUBJECT: Tax Refund Request — Walker Hall Busby, Jr. DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Busby Email Refund Request Nancy T Freeman, Tax Administrator, North Carolina General Statute 105-381 (919) 245-2735 Coates' Cannons Blog — Appraisal vs Clerical Error Resolution PURPOSE: To consider a refund request for taxes submitted by Walker Hall Busby, Jr. BACKGROUND: Walker Hall Busby, Jr. submitted a refund request for property identified as PIN 9779209961 and owned by Walker Hall Busby, Jr. and Marjorie G. Busby for taxes improperly assessed from 2021 through 2022. The claim for this request is based on the premise that for 2021, the County incorrectly calculated the finished area of the residence of the property to be 4,216 square feet, whereas a 2023 inspection of the property resulted in a re-measuring of the residence and a revised finished area calculation of 2,975 square feet. Mr. Busby maintains that the values for 2021 and 2022 are incorrect due to a clerical error on the part of the Orange County Tax Office appraisers. Mr. Busby has requested a refund in the amount of $2,959.57 for overpayment of taxes due to this calculation error. Based on Tax Office review, if the property value were changed as proposed from $610,200 to $523,100, the appropriate calculated refund amount would be $2,808.71. Each year, property owners have the opportunity to appeal their values prior to the adjournment of the Board of Equalization and Review. Once the Board adjourns, the Assessor has no statutory authority to make adjustments on the current assessments. The value for the 2023 tax year was adjusted on March 27, 2023 to $523,100 representing a correction to an appraisal error for the property initiated by the taxpayer's return of a data validation form mailed by the Orange County Tax Office. North Carolina General Statute (NCGS) 105-381(a) allows the refund and release of taxes only under very limited circumstances, including clerical error. In the 1997 case Ammons vs. Wake County, the NC Court of Appeals concluded that to qualify as a clerical error, a mistake must be one that produces an unintended result and is apparent from the face of the documents, such as a transcription mistake (for example, recording 5,200 square feet instead of 2,500 square feet.). The term "clerical error" does not include errors in judgment such as an appraisal error.