Agenda 05-06-25; 8-c - Property Tax Releases Refunds

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 6, 2025 Action Agenda Item No. 8-c SUBJECT: Property Tax Releases/Refunds DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Resolution Nancy Freeman, Tax Administrator, Release/Refund Data Spreadsheet (919) 245-2735 PURPOSE: To consider adoption of a resolution to release property tax values for eight (8) taxpayers with a total of ten (10) bills that will result in a reduction of revenue. BACKGROUND: The Tax Administration Office has received eight (8) taxpayer requests for release or refund of property taxes. North Carolina General Statute 105-381(b), "Action of Governing Body", provides that "upon receiving a taxpayer's written statement of defense and request for release or refund, the governing body of the Taxing Unit shall, within 90 days after receipt of such a request, determine whether the taxpayer has a valid defense to the tax imposed or any part thereof and shall either release or refund that portion of the amount that is determined to be in excess of the correct liability or notify the taxpayer in writing that no release or refund will be made". North Carolina law allows the Board to approve property tax refunds for the current and four (4) previous fiscal years. FINANCIAL IMPACT: Approval of this change will result in a net reduction in revenue of $302,347.17 to Orange County, municipalities, and special districts. Of this total, the impact on the County's portion of the taxes is $158,262.17. The financial impact year to date for FY 2024- 2025 is $401,695.68. The Tax Assessor recognized that refunds could impact the budget and accounted for these in the annual budget projections. ALIGNMENT WITH STRATEGIC PLAN: This item supports: • MISSION STATEMENT: Orange County is a visionary leader in providing governmental services valued by our community, beyond those required by law, in an equitable, sustainable, innovative, and efficient way. • GUIDING PRINCIPLE — STEWARDSHIP AND ADVOCACY We make proactive data-supported decisions and advocate to local, state, and Federal governments in response to our community's needs in a way that best utilizes our resources. • GUIDING PRINCIPLE — SOCIAL JUSTICE We reject oppression and inequity by ensuring fair and equitable treatment of all people. RECOMMENDATION(S): The Manager recommends that the Board approve the attached resolution approving these property tax release/refund requests in accordance with North Carolina General Statute 105-381.