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