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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: December 10, 2024 <br /> Action Agenda <br /> Item No. 8-b <br /> SUBJECT: Motor Vehicle Property Tax Releases/Refunds <br /> DEPARTMENT: Tax Administration <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Resolution Nancy Freeman, Tax Administrator, <br /> Release/Refund Data Spreadsheet (919) 245-2735 <br /> Reason for Adjustment Summary <br /> PURPOSE: To consider adoption of a resolution to release motor vehicle property tax values for <br /> four (4) taxpayers with a total of four (4) bills that will result in a reduction of revenue. <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 rate(s) 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 /> 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 /> 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 /> FINANCIAL IMPACT: Approval of these release/refund requests will result in a net reduction of <br /> $1,618.89 in revenue to Orange County, municipalities, and special districts. Financial impact <br /> year to date for FY 2024-2025 is $9,489.30. The Tax Assessor recognized that refunds could <br /> impact the budget and accounted for these in the annual budget projections. <br />