Orange County NC Website
7 <br /> § 105-381. Taxpayer's remedies. <br /> (a) Statement of Defense. — Any taxpayer asserting a valid defense to the enforcement <br /> of the collection of a tax assessed upon his property shall proceed as hereinafter provided. <br /> (1) For the purpose of this subsection, a valid defense shall include the <br /> following: <br /> a. A tax imposed through clerical error; <br /> b. An illegal tax; <br /> C. A tax levied for an illegal purpose. <br /> (2) If a tax has not been paid, the taxpayer may make a demand for the release <br /> of the tax claim by submitting to the governing body of the taxing unit a <br /> written statement of his defense to payment or enforcement of the tax and a <br /> request for release of the tax at any time prior to payment of the tax. <br /> (3) If a tax has been paid, the taxpayer, at any time within five years after said <br /> tax first became due or within six months from the date of payment of such <br /> tax, whichever is the later date, may make a demand for a refund of the tax <br /> paid by submitting to the governing body of the taxing unit a written <br /> statement of his defense and a request for refund thereof. <br /> (b) Action of Governing Body. — Upon receiving a taxpayer's written statement of <br /> defense and request for release or refund, the governing body of the taxing unit shall within 90 <br /> days after receipt of such request determine whether the taxpayer has a valid defense to the tax <br /> imposed or any part thereof and shall either release or refund that portion of the amount that is <br /> determined to be in excess of the correct tax liability or notify the taxpayer in writing that no <br /> release or refund will be made. The governing body may, by resolution, delegate its authority to <br /> determine requests for a release or refund of tax of less than one hundred dollars ($100.00) to <br /> the finance officer, manager, or attorney of the taxing unit. A finance officer, manager, or <br /> attorney to whom this authority is delegated shall monthly report to the governing body the <br /> actions taken by him on requests for release or refund. All actions taken by the governing body <br /> or finance officer, manager, or attorney on requests for release or refund shall be recorded in <br /> the minutes of the governing body. If a release is granted or refund made, the tax collector shall <br /> be credited with the amount released or refunded in his annual settlement. <br /> (c) Suit for Recovery of Property Taxes. — <br /> (1) Request for Release before Payment. — If within 90 days after receiving a <br /> taxpayer's request for release of an unpaid tax claim under (a) above, the <br /> governing body of the taxing unit has failed to grant the release, has notified <br /> the taxpayer that no release will be granted, or has taken no action on the <br /> request, the taxpayer shall pay the tax. He may then within three years from <br /> the date of payment bring a civil action against the taxing unit for the <br /> amount claimed. <br /> (2) Request for Refund. — If within 90 days after receiving a taxpayer's request <br /> for refund under (a) above, the governing body has failed to refund the full <br /> amount requested by the taxpayer, has notified the taxpayer that no refund <br /> will be made, or has taken no action on the request, the taxpayer may bring a <br /> civil action against the taxing unit for the amount claimed. Such action may <br /> be brought at any time within three years from the expiration of the period in <br /> which the governing body is required to act. <br /> (d) Civil Actions. — Civil actions brought pursuant to subsection (c) above shall be <br /> brought in the appropriate division of the general court of justice of the county in which the <br /> taxing unit is located. If, upon the trial, it is determined that the tax or any part of it was illegal <br /> or levied for an illegal purpose, or excessive as the result of a clerical error,judgment shall be <br /> G.S. 105-381 Page 1 <br />