Transcript Discovery or Immaterial Irregularity

Discovery or Immaterial
Irregularity
Gregg Martin
Property Valuation Specialist
NCDOR 2011 Advanced Seminars
Discovery of BPP
• G.S. 105-312
• “G.S. 105-273(6a) Discovered Property.-Any of
the following: a. Property that was not listed
during a listing period. b. Property that was
listed but the listing included a substantial
understatement. c. Property that has been
granted an exemption or exclusion and does
not qualify for the exemption or exclusion.”
Discovery of BPP
• No abstract, no contact with county
• Taxpayer format with no abstract
• Not disclosed on abstract-no attachment
• Disclosed on abstract along with attachment
Discovery of BPP
• Discovery by way of roll forward of account
Discovery of BPP
• Assessor must list the discovered property in
the name of the owner
• Assessor must make a tentative appraisal of
the discovered property
• Statute of limitations is current year plus five
previous years
• Penalty is required to be applied to discovered
property
Discovery of BPP
• Penalty is 10% for each listing period the
property escaped taxation
Discovery Notice
• Notice must include:
– Name and address of the person in whose name
the property is listed
– Brief description of the property
– Tentative appraisal of the property
– Statement that listing will become final unless
written exception is filed with the assessor within
30 days from the date of the notice
Discovery Notice
• Separate notice prior to billing
• Using the bill as the notice
• Not applying penalty
Immaterial Irregularity
• “G.S. 105-394 Immaterial irregularities in the
listing, appraisal, or assessment of property
for taxation or in the levy or collection of the
property tax or in any other proceeding or
requirement of this subchapter shall not
invalidate the tax imposed upon any property
or any other process of listing, appraisal,
assessment, levy, collection or any other
proceeding under this Subchapter.”
Immaterial Irregularity
• “(3) The failure to list, appraise, or assess any
property for taxation or to levy any tax within
the time prescribed by law.”
Immaterial Irregularity
• Not disclosed on abstract no attachment
• Not disclosed on abstract-on attachment
• Disclosed on abstract along with attachment
• Taxpayer format with no abstract
Immaterial Irregularity
• Statute of Limitations
• Notification
• Explanation of action
• Billing
Reporting Real Estate
Business Personal Property Abstract
Real Property on Personal Abstract
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Alert Personal Staff to plant expansions
Additional BPP may be anticipated
Discuss expansions with real property staff
Proactive contact with taxpayer
Possibility of CIP
Real property on Personal Abstract
• Single line for amount only
• State approved abstract and Schedule H
• The failure to report improvements is subject
to discovery
• The failure to list, appraise and assess
improvements to real estate that have been
reported is an immaterial irregularity