Orange County debate centers on penalty to improve business personal property filings

Orange County’s chief deputy in the commissioner’s office told supervisors the county lacks an effective mechanism to ensure businesses timely file annual business personal property returns and asked the board to authorize a penalty to incentivize compliance.

Josh Crawford, chief deputy in the commissioner’s office, said roughly 46% of approximately 1,700 county businesses did not file the required form for the 2024 tax year and that statutory assessments based on office estimates generated about $112,000 in penalties under the current practice. Crawford asked the board to adopt a penalty consistent with surrounding localities — for example, up to 10% of the tax assessed or a minimum dollar amount.

"The only forms that we technically do require at this point in time to have filing is a business personal property form," Crawford said, explaining current compliance challenges and the office’s limited staffing to pursue filings.

Supporters said a penalty would make filing fairer for compliant businesses and allow the county to better estimate its tax base. Several supervisors, however, urged caution, citing concerns about burdening very small or home‑based enterprises and the need to improve outreach before penalizing. One supervisor suggested a lower penalty (for example, 5%) while requesting a report back next year on whether compliance improved.

Board members also discussed enforcement mechanics, the potential for on‑site audits when filings appear incomplete, and waivers for demonstrable cases such as recent purchases or business closures. No penalty ordinance was adopted at the meeting; supervisors asked staff to return with a more detailed proposal and outreach plan.

The board left the matter for further review rather than taking immediate action.