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I <br />ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: September 7, 2005 <br />Action Agenda <br />Item No. 5-e,. <br />SUBJECT: Property Tax Refund Request <br />DEPARTMENT: Assessor's Office PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): <br />Resolution <br />6/09/05 Refund Request Letter <br />8/02/05 Assessor Letter <br />INFORMATION CONTACT: <br />John Smith, ext. 2101 <br />TELEPHONE NUMBERS: <br />Hillsborough 732-8181 <br />Chapel Hill 968-4501 <br />Durham 688-7331 <br />Mebane 336-227-2031 <br />PURPOSE: To consider adoption of a refund resolution related to one (1) request for property <br />tax refund. <br />BACKGROUND: The Assessor's Office has received one (1) request from a taxpayer for <br />refund of property taxes paid in prior fiscal years. General Statute 105-381(b), "Action of <br />Governing Body" provides that "upon receiving a taxpayer's written statement of defense and <br />request for release or refund, the governing body of the Taxing Unit shall within 90 days after <br />receipt of such a 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 liability or notify the taxpayer in writing that no release <br />or refund will be made". North Carolina law allows the Board to approve property tax refunds <br />for the current and four previous fiscal years. Under GS105-380 "the governing body of a <br />taxing jurisdiction is prohibited from releasing, refunding, or compromising all or any portion of <br />the taxes levied against any property within its jurisdiction except as expressly provided". Per <br />the same statute, any tax that has been refunded in violation of law may be recovered from any <br />members of the governing body who voted for the refund, <br />In this case, the taxpayer has requested a refund for tax years 2000 through 2004, but there is <br />no basis for granting a refund. In response to the taxpayer's inquiry, his property was re- <br />measured in February 2005, The onsite review led to a small reduction in square footage of <br />living area. However, in accord with the 2005 adopted schedule of values, the total building <br />value actually increased slightly. Since the remeasurement produced an increase in property <br />value, there can be no assumption that the tax value was improperly high for tax years 2000 <br />through 2004, and thus no basis for granting the requested relief.