You may now believe that non-business property is non-taxable. I have just shown you that in part 2. If you are unsure, go to the NC General Statutes and look for yourself. See the context that these all come from. It might be worth your time to save hundreds of dollars per year or so on property tax.
So, if you are armed with that knowledge that your non-business property is not taxable, and it is BEING taxed, what do you do? Make a phone call?
As is almost always the case, there are remedies for you written into the law. Check this out:
(note: “remedies” and “rights” are terms used interchangeably).
Refunds and Remedies.
§ 105-380. No taxes to be released, refunded, or compromised.
(a) The governing body of a taxing unit is prohibited from releasing, refunding, or compromising all or any portion of the taxes levied against any property within its jurisdiction except as expressly provided in this Subchapter.
§ 105-381. Taxpayer’s remedies.
(a) Statement of Defense. – Any taxpayer asserting a valid defense to the enforcement of the collection of a tax assessed upon his property shall proceed as hereinafter provided.
(1) For the purpose of this subsection, a valid defense shall include the following:
a. A tax imposed through clerical error;
b. An illegal tax;
c. A tax levied for an illegal purpose.
(2) If a tax has not been paid, the taxpayer may make a demand for the release of the tax claim by submitting to the governing body of the taxing unit a written statement of his defense to payment or enforcement of the tax and a request for release of the tax at any time prior to payment of the tax.
(3) If a tax has been paid, the taxpayer, at any time within five years after said tax first became due or within six months from the date of payment of such tax, whichever is the later date, may make a demand for a refund of the tax paid by submitting to the governing body of the taxing unit a written statement of his defense and a request for refund thereof.
(b) Action of Governing Body. – 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 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 tax liability or notify the taxpayer in writing that no release or refund will be made. The governing body may, by resolution, delegate its authority to determine requests for a release or refund of tax of less than one hundred dollars ($100.00) to the finance officer, manager, or attorney of the taxing unit. A finance officer, manager, or attorney to whom this authority is delegated shall monthly report to the governing body the actions taken by him on requests for release or refund. All actions taken by the governing body or finance officer, manager, or attorney on requests for release or refund shall be recorded in the minutes of the governing body. If a release is granted or refund made, the tax collector shall be credited with the amount released or refunded in his annual settlement.
(c) Suit for Recovery of Property Taxes. –
(1) Request for Release before Payment. – If within 90 days after receiving a taxpayer’s request for release of an unpaid tax claim under (a) above, the governing body of the taxing unit has failed to grant the release, has notified the taxpayer that no release will be granted, or has taken no action on the request, the taxpayer shall pay the tax. He may then within three years from the date of payment bring a civil action against the taxing unit for the amount claimed.
(2) Request for Refund. – If within 90 days after receiving a taxpayer’s request for refund under (a) above, the governing body has failed to refund the full amount requested by the taxpayer, has notified the taxpayer that no refund will be made, or has taken no action on the request, the taxpayer may bring a civil action against the taxing unit for the amount claimed. Such action may be brought at any time within three years from the expiration of the period in which the governing body is required to act.
(d) Civil Actions. – Civil actions brought pursuant to subsection (c) above shall be brought in the appropriate division of the general court of justice of the county in which the taxing unit is located. If, upon the trial, it is determined that the tax or any part of it was illegal or levied for an illegal purpose, or excessive as the result of a clerical error, judgment shall be rendered therefor with interest thereon at six percent (6%) per annum, plus costs, and the judgment shall be collected as in other civil actions.”
If your non-business property is being taxed, that is ILLEGAL. You have the right to shelter and ownership of a home.
Notice the words “assert” and “demand” and how a “valid defense” is clearly defined.
The word “prove” is not used, only “assert”. The taxing authority knows whether you are running a licensed business out of that building, or living there as a matter of RIGHT. Assert that right. They will surely see that you have a “valid defense”.
On the NC Dept. of Revenue’s own website, there are pdfs of presentations made to tax professionals/ assessors. One presentation, in reference to these § 105-381 remedies/exclusions, says that the “burden of establishing” an exclusion lies upon the homeowner. Once again, the word “prove” is sidestepped. We have already read IN THE LAW that one must ASSERT the exclusion. That it how it is established.
It is also noted in official literature that no application is needed for an exclusion; only for an exemption.
The Homestead Exemption is in the law as a Red Herring to have you read it and say to yourself “Awwww– that’s not me. Oh well– it was worth a try.” That exemption must be applied for. Essential, an application would be saying “This is taxable business property, but please make an exception… pretty please?”
The detailing of what must be said to the taxing authority makes the process super simple, and is not an application (request for privilege/special treatment) that could be denied. It is an ASSERTION of EXCLUSION.
It’s all laid out- you only had to look.
These people have taken an oath to the Constitution, but don’t mind at all that you are paying money unnecessarily and that the authorities have you scared into not even questioning the taxation of a right. If you don’t rebut the presumption that your land and home are business property, you must be in agreement, right?