If a North Carolina Property Tax Commissioner's brother sits on a county board of commissioners, can the PTC member hear property-tax appeals from that county where his brother voted on the underlying tax decision?

Plain-English summary

The Property Tax Commission secretary asked whether a member could hear appeals from a county where his brother served as a commissioner. The county's board of equalization and review consisted of people other than the commissioners. After that board adjourned, the county commissioners could address later ad valorem tax questions or matters it had not considered. Those commissioner decisions could be appealed to the Property Tax Commission. Source

The AG said that, if the Commission member sat in judgment of a decision made or joined by his brother, it would be a "direct conflict of interest" that destroyed the impartiality required of the Commission. The letter concluded that he "should also recuse himself from all appeals involving any action taken by the board of county commissioners in which his brother may have participated." Source

Currency note

This is a December 1997 opinion on a particular relationship and appeal path. Check current recusal law and the facts of the county action for a present appeal.

Background and statutory framework

The opinion describes the Property Tax Commission as a five-member quasi-judicial body under G.S. § 105-290 that hears appeals from county commissioners and boards of equalization and review. It cites G.S. § 105-322 for the designated period during which the local board sits. The recusal conclusion rests on the risk of the Commission member reviewing action his brother may have taken at the county level. Source

Common questions

Did the AG call for recusal from every appeal involving that county?

The stated conclusion covers appeals involving county-commissioner action in which the member's brother may have participated. The opinion explains that this county's equalization and review board was composed of other people. It does not announce a blanket county-wide rule. Source

Did the AG create an exception if the brother was absent from a meeting?

The letter does not address that fact pattern. Its wording refers to any action in which the brother "may have participated"; it gives no separate absence or abstention test. Source

Why did the AG recommend recusal?

The Property Tax Commission might otherwise have to judge a decision made or joined by the member's brother. The opinion calls that a direct conflict and says it would destroy the impartiality required of the Commission. Source

Source

• Landing page: https://ncdoj.gov/opinions/conflict-of-interest-member-of-tax-commission/

Citations

• G.S. § 105-290
• G.S. § 105-322

Original opinion text

December 5, 1997

Janet L. Shires, Secretary
Property Tax Commission
Post Office Box 871
Raleigh, North Carolina 27602

Re: Advisory Opinion; Conflict of interest; Member of Property Tax Commission related to individual serving upon Board of County Commissioners; G.S. §105-290, -322

Dear Ms. Shires:

We understand from your recent letter that a member of the Property Tax Commission (PTC) is brother to an individual elected as a local county commissioner. You inquire whether the PTC appointee may sit upon appeals from the county in which his brother participated as commissioner.

The PTC is a five member, quasi-judicial body which adjudicates property tax appeals from boards of county commissioners and boards of equalization and review (Bds of E & R). G.S. §105-290. It serves as the state-wide administrative body to resolve appeals regarding assessment of property taxes by local units of government. Initial questions involving ad valorem taxes are first resolved by the county Bd of E & R. Normally, but not always, this entity is composed of members of the board of county commissioners. In the county in question, however, the Bd of E & R is comprised of persons other than the individuals that serve as commissioners.

The Bd of E & R, however constituted, sits for a designated period. G.S. §105-322. Once the Bd of E & R adjourns, the board of county commissioners as such meets to address ad valorem tax questions arising subsequently or which were not considered by the Bd of E & R.

Under the appeal procedures established by the Machinery Act, it is possible under these circumstances that a property owner could appeal an adverse decision entered by the county commissioners to the PTC. In this situation, the PTC member in question would be asked to sit in judgment upon decisions made, or joined in, by his brother. This constitutes a direct conflict of interest and destroys the impartiality which must cloak decisions rendered by the PTC.

Consequently, in addition to all other issues presenting divided allegiances, we believe the PTC member should also recuse himself from all appeals involving any action taken by the board of county commissioners in which his brother may have participated.

We hope the foregoing is helpful.

Reginald L. Watkins
Senior Deputy Attorney General

George W. Boylan
Special Deputy Attorney General