[Ord. of 2-19-08(3)]
The objective of the Durham Tax Deferral Program is to defer
payment of real estate taxes for qualifying taxpayers as described
below until the property is transferred or the claimant dies without
a qualified surviving spouse. This program is intended as an alternate
form of tax relief to the "freeze" program.
[Ord. of 2-19-08(3)]
(a)
Subject to the limitations hereinafter set forth, real property tax
deferral benefits shall be available with respect to real property
located in the Town of Durham owned and occupied as their principal
residence by residents of Durham who are:
(1)
Sixty-five years of age and over or whose spouses, living with them, are 65 years of age or over; or 60 years of age or over and the surviving spouse of a taxpayer qualified under this plan at the time of his or her death; or with respect to real property located in the Town of Durham occupied as their principal residence on which such residents or their spouses are liable for taxes under G.S. § 12-48; or
(2)
Under age 65 and eligible in accordance with applicable federal
regulations to receive permanent total disability benefits under social
security or who have not been engaged in employment covered by social
security and accordingly have not qualified for benefits thereunder
but have become qualified for permanent total disability benefits
under any federal, state or local government retirement or disability
plan, including the Railroad Retirement Act and any government-related
teachers' retirement plan in which requirements with respect to qualifications
for such permanent total disability benefits are comparable to such
requirements under social security.
(b)
All such residents or their spouses shall have been taxpayers of
the Town of Durham and meet income and residency requirements as stated
here:
|
Years of Residency
|
Requirement
| |
|---|---|---|
|
5—10 years of residency
|
Income not to exceed maximum income levels set annually for
single or married status, as applicable, by the office of policy and
management for state elderly/disabled tax relief programs
| |
|
11—20 years of residency
|
Income not to exceed 1.5 times the maximum income levels set
annually for single or married status, as applicable, by the office
of policy and management for state elderly/disabled tax relief programs
| |
|
20+ years of residency
|
Income not to exceed 2 times the maximum income levels set annually
for single or married status, as applicable, by the office of policy
and management for state elderly/disabled tax relief programs
|
[Ord. of 2-19-08(3)]
Taxpayers shall be eligible to participate in only one local
tax relief program, i.e., the tax deferral program or the senior tax
relief program. The benefits under either local program shall not
be in lieu of benefits available under any state tax relief program.
[Ord. of 2-19-08(3)]
All such residents or spouses who may qualify for tax relief
under G.S. §§ 12-129b through 12-129d, inclusive, § 12-129h
and/or § 12-170aa must apply for and be included, if qualified,
in such program or programs as a condition precedent to qualifying
for and receiving benefits under the Durham Tax Deferral Program (DTDP).
[Ord. of 2-19-08(3)]
(a)
The board of finance shall establish a maximum amount, or "cap,"
for the aggregate amount of deferrals available under this program.
After consultation with the Assessor, the board of finance shall determine
whether the aggregate amount of tax deferment sought under this program
exceeds the dollar amount of the cap. If the board of finance determines
that the cap is exceeded, it shall direct the Assessor to prorate
the benefits in accordance with provisions of this section. Excess
requested deferral over the cap shall be prorated over all participants
in the senior tax deferral program in accordance with the following
formula:
Total dollar amount in excess of cap divided by total tax deferral
amount requested by all program participants equals the percentage
the requested deferments will be reduced.
(1)
"Excess of cap" shall be defined as the amount of tax deferments
requested that exceeds the cap set by the board of finance.
(2)
An example of the proposal would be:
|
Cap set by the board of finance:
|
$300,000
| |
|
Total requested deferred tax of all participants:
|
$350,000
| |
|
Excess of cap:
|
$50,000
| |
|
Sample tax deferral requested for participant (A):
|
$3,000
| |
|
Excess over cap ($350,000-$300,000) = $50,000/$350,000 = 14.3%
X $3,000 = $429. Deferral requested $3,000 - $429 = $2,601
| ||
|
Amount of taxes participant (A) could defer this year = $2,601
| ||
|
Amount of taxes participant (A) must pay this year = $429
|
[Ord. of 2-19-08(3)]
(a)
The total amount of tax deferment allowed under the senior tax deferral
program to all qualified taxpayers shall be determined by the board
of finance and shall not exceed 1% of the proposed tax levy to which
the deferment is to be applied.
(b)
For those such residents or spouses receiving or eligible to receive
benefits under the state tax relief program, the benefit available
under DTDP shall not exceed, in the aggregate, 100% of the total amount
of the tax which would, except for said G.S. §§ 12-129b
through 12-129d, inclusive, §§ 12-129h and 12-170aa
and DTDP, be laid against the taxpayer for said real property. Thus,
the tax deferment available to such residents or their spouses under
DTDP shall be equal to the difference between the abatement afforded
by such state programs and 100% of the taxes (or the portion of the
taxes permitted to be deferred based on the maximum benefit cap established
by the board of finance) laid against the taxpayer for such real property.
If benefits received under state programs exceed said 100% of the
total taxes due, no tax deferment benefit shall be available under
DTDP.
(c)
The total amount of tax deferment allowed against any single property
under the senior tax deferral program shall not exceed, in the aggregate,
the assessed value shown on the current grand list of said property.
(d)
There shall be no tax deferment benefits available under DTDP where
income exceeds defined limits.
[Ord. of 2-19-08(3)]
The real property tax deferral relief provided under DTDP may,
in any case where title to the real property is recorded in the name
of the taxpayer or his or her spouse and any other person or persons,
be prorated to reflect the fractional share of such taxpayer or spouse,
or, if such real property is a multiple-family dwelling, such relief
may be prorated to reflect the fractional portion of such property
occupied by the taxpayer.
[Ord. of 2-19-08(3)]
(a)
All tax deferments granted under DTDP shall bear interest from the
date said deferred taxes become due (July 1 and January 1 of each
year) and compound annually until fully paid. The rate of interest
payable on such deferred taxes shall be set annually by the Durham
Board of Finance at its first regular meeting in January of each year,
to be applicable to the fiscal year commencing the following July
1.
(b)
As a condition precedent to receiving the tax deferral benefits under
DTDP, an applicant shall execute a tax deferral lien, on a form provided
by the Assessor, in favor of the Town of Durham at the time of application
for benefits hereunder is made, to be recorded on the Durham land
records by the Durham Tax Collector upon the approval of such application
by the Durham Assessor.
(c)
Taxes deferred under DTDP shall be due and payable, together with
accumulated interest thereon, at such time as the real property in
question is sold and conveyed, whether or not for value, or title
is transferred or upon the death of such taxpayer (unless a spouse
qualified under this section hereof survives), whichever event first
occurs.
[Ord. of 2-19-08(3)]
(a)
Any resident believing himself or herself entitled to tax deferments
under DTDP for any assessment year shall make application on a form
prepared for such purpose by the Durham Assessor and submit the same
for approval to the Durham Assessor at any time from February 1 to
and including May 15 of the year for which the tax deferment benefit
is claimed. In making such application, the applicant shall present
to the Assessor, in substantiation of his or her application, a copy
of such applicant's federal income tax return including a copy of
said security statement of earnings for such applicant and that of
such applicant's spouse, if filed separately, for such applicant's
taxable year ending immediately prior to the submission of such application
or, if not required to file a return, such other evidence of qualifying
income in respect to such taxable year as may be required by the Assessor.
(b)
When the Assessor is satisfied that the applicant is entitled to
the tax deferment applicable in accordance with DTDP, the Assessor
shall issue a certificate of tax deferment showing the amount of the
taxes deferred to the applicant and deliver a copy of said certificate
of deferment, together with the executed tax deferred lien, to the
Durham Tax Collector.
(c)
The amount of the tax deferment approved shall be applied to the
real property tax payable by the resident taxpayer for the assessment
year in which such application is submitted and approved. If any such
resident taxpayer has qualified for a tax deferment under DTDP, the
deferment shall be applied and prorated uniformly over the number
of installments in which the real property tax is due.
[Ord. of 2-19-08(3)]
Any person aggrieved by the action of the Assessor in determining
the amount of relief or in disapproving any such application under
this article may appeal to the Board of Selectmen, in writing, within
14 days after the date of the written notification of the Assessor
on such application. The Board of Selectmen shall promptly consider
such appeal and may grant or deny the relief requested, or make such
other modifications necessary to comply with the article.
