Title
Vote on a recommendation from the Chatham County Tax Department to reduce the value for parcel 0062694 owned by After School LLC to $1,577,967 based on NCGS 105-277.16.
Abstract
Action Requested:
Vote on a recommendation from the Chatham County Tax Department to reduce the value for parcel 0062694 owned by After School LLC to $1,577,967 based on NCGS 105-277.16.
Introduction & Background:
During the reappraisal parcel 0062694 located at 511 W. Third St, Siler City, NC was valued at $2,954,570. Annually the Tax Department receives documentation from the NC Department of Revenue notifying the office of properties that qualify for Section 42 Housing. The property owned by After School LLC was labeled as pre-monitoring. Since the property was not labeled as approved the value was not reduced. The taxpayer questioned the value after receiving the tax bill and the tax department consulted with the NC Department of Revenue.
Discussion & Analysis:
Based on discussion with NC Department of Revenue it was determined that pre-monitoring and approved both qualify as Section 42 Housing. It is recommended that the Tax Department base the value on income of parcel 0062694 located at 511 W Third St, Siler City, NC on NCGS 105-277.16 and reduce the value to $1,577,967.
How does this relate to the Comprehensive Plan:
The property at parcel 006294 owned by After School LLC is a Low-Income Housing Tax Credit Property, that is income restricted and set to be affordable for 30 years. The Section 42 assessment is designed to recognize this purpose and the different impact and development budget structure of said project. This recommendation is in line with Goal 9 of Plan Chatham which is to Provide equitable access to high-quality education, housing and community options for all.
Budgetary Impact: Reduce the amount of taxes due for parcel 0062694 by $16,588. The new total is $19,014.50.
Recommendation: Motion to approve recommendation from the Chatham County Tax Department to reduce the value for parcel 0062694 owned by After School LLC to $1,577,967 based on NCGS 105-277.16.