Agenda 12-01-2025; 8-e - Property Tax Release-Refund Request – Laura Jost Malahias

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2 County, the North Carolina 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. In this instance the correction of the improvement's square footage by the Orange County Tax Office represents a correction to an appraisal error. The appropriate procedure is to correct the error and valuation for the current tax year and subsequent years, which has been done for 2026 and forward according to NCGS 105-287. A consideration in the decision to deny this request comes from North Carolina General Statute (NCGS) 105-380(c) which states: Any tax that has been released, refunded, or compromised in violation of this section may be recovered from any member of members of the governing body who voted for the release, refund, or compromise by civil action instituted by any resident of the taxing unit, and when collected, the recovered tax shall be paid to the treasurer of the taxing unit. The costs of bringing action, including reasonable attorneys' fees, shall be allowed the plaintiff in the event the tax is recovered. The taxpayer's request also included reference to an incorrect mailing that the Tax Office has used for correspondence concerning the property. When a property is transferred to a new owner, mailing addresses are specifically provided on deeds for the grantees/new owners. Unless or until the owner notifies the Tax Office differently, that address is assumed correct and used for all correspondence and bills. In the event that a bill remains unpaid after the delinquent date, or when the mailed item is returned to the Tax Office, Collections staff researches the mailing address to ensure that the Tax Office has made its best effort to send the bill or correspondence to the best address. The Mahailas' tax bills have been paid promptly each year since the purchase in 2021, which would lead to the assumption that the mailing address provided at the time of the property transfer was correct. However, the 2025 tax bill was returned to the Tax Office due to an incorrect address, which led staff to research for a better mailing address, and the bill was remailed with a request to contact the Tax Office with the correct mailing address. Subsequently, Ms. Mahalias completed and submitted an address change form in September 2025 to correct the mailing address for the property. FINANCIAL IMPACT: Approval of the refund request would result in a loss of $4,428.63 as calculated by the Tax Office for years 2023 through 2025. 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. RECOMMENDATION(S): The Manager recommends that the Board approve the attached resolution which would deny the refund request based on consultation with the County Attorney.