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Home My WebLink AboutAgenda - 05-18-2010 - 4c 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: May 18, 2010 Action Agenda Item No. L{-°G SUBJECT: Motor Vehicle Property Tax Release/Refunds DEPARTMENT: Tax Administrator PUBLIC HEARING: (Y/N) No ATTACHMENT(S): INFORMATION CONTACT: Resolution Jo Roberson, Tax Administrator Release/Refund Data Spreadsheet 919-245-2727 Reason for Adjustment Summary PURPOSE: To consider adoption of a refund resolution related to 26 requests for motor vehicle property tax releases or refunds. BACKGROUND: North Carolina General Statute (NCGS) 105-381(a)(1) allows a taxpayer to assert a valid defense to the enforcement of the collection of a tax assessed upon his/her property under three sets of circumstances: (a) "a tax imposed through clerical error", for example when there is an actual error in mathematical calculation; (b) "an illegal tax", such as when the vehicle should have been billed in another county, an incorrect name was used, or an incorrect rate code (the wrong combination of applicable county, municipal, fire district, etc. tax rates) was used; (c) "a tax levied for an illegal purpose", which would involve charging a tax which was later deemed to be impermissible under state law. NCGS 105-381(b), "Action of Governing Body" provides that "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 a 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 liability or notify the taxpayer in writing that no release or refund will be made". For classified motor vehicles, NCGS 105-330.2(b) allows for a full or partial refund when a tax has been paid and a pending appeal for valuation reduction due to excessive mileage, vehicle damage, etc. is decided in the owner's favor. FINANCIAL IMPACT: Approvai of these release/refund requests will result in a net reduction of $2,677.05 to Orange County, the towns, and school and fire districts. Financial impact year to date for FY 2009-2010 is $53,508.37. 2 RECOMMENDATION(S): The Manager recommends that the Board: • Accept the report reflecting the 26 motor vehicle property tax release/refunds requested in accordance with the NCGS; and • Approve the attached refund resolution. � NORTH CAROLINA I�E_ S- � d10 __ D �# � s ORANGE COUNTY REFUND RESOLUTION(Approval) Whereas,North Carolina General Statutes 105-381 and/or 330.2(B)allows for the refund of taxes when the Board of County Commissioners determines that a taxpayer applying for therefund has a valid defense to tlie tax imposed;and Whereas,the properties listed in each of the attached"Request for Properiy Tax Refunds"has been taxed;and Whereas,as to each of the properties listed in the Request for Property Tax Refunds,tl�e taepayer has timely applied'v��vriting for a refund of the tax imposed and has presented a valid defense to tlie tax imposed as indicated on the Request for Property Tax Refunds. NOW,THEREFORE,IT IS R�SOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF ORANGE COUNTY THAT tt�e recommended property tax refund(s)are approved. Upon motion duly made and seconded,the foregoing resolution was passed by the following votes: Ayes: Commissioners Noes: I,Donna Baker,Clerk to the Board of Commissioners for the County of Orange,North Carolina, DO HEREBY CERTIFY that the foregoing has been carefully copied from[he recorded minutes of the Board of Commissioners for said County at a regular meeting of said Board held on ,said record having been made in the Minute Book of the minutes of said Board, and is a tiue copy of so much of said proceedings of said Board as relates in any way to the passage of the xesolution described in said proceedings. WITNESS my hand and the corporate seal of said County,this day of Clerk to the Board of Commissioners Clerical Error 105-381(a)(1)a.(INCORRECT RATE) gp�C REGISTERED MOTOR VEHICLE REPORT I Ilegal Tax 105-381(a)(1)b. AppraisalAppea1105-3302(B) MAY 18� 2��0 BILLING RATE ORIGINAL ADJUSTED FINANCIAL NAME&BILL NUMBER YEAR CODE VALUE Levy VALUE IMPACT REASON FOR ADJUSTMENT Briggs, Russell 2009147187 2009 03 10,000 8,000 -18.09 Appraisal Appeal - Purchase Price Buchanan, Robert 2009138861 2009 22 11,530 9,455 -31.96 Appraisal Appeal - High Mileage Caramore Community, Inc. 2007147447 2009 21 1,380 0 -52.57 Illegal Tax-Has Tax Exempt Status Caramore Community, Inc. 2009147446 2009 , 21 � 8,280 0 -165.44 Illegal Tax- Has Tax Exempt Status Cordle,Asa 2009147869 2009 22 5,240 4,611 -101.03 Appraisal Appeal- High Mileage Fernandez, David 2009148576 2009 22 18,850 0 -320.36 Illegal Ta:c- Military Exempt Home of Record (FL) Hastings, Anoe Smith 2009141757 2009 22 18,710 15,990 -41.90 Appraisal Appeal- Purchase Price Heath, Randall, � 2009141796 2009 04 9,970 6,381 -40.37 Appraisal Appeal - High Mileage Heron, Becky Melton 2009141846 2009 09 15,060 0 -138.23 Illegal Tax-Change County to Durham Johnson, Ralph Hunter 2009142326 2009 16 16,010 14,089 -17.70 Appraisal Appeal- High Mileage Judd, Patricia 2009135459 2009 22 1,540 0 -54.91 Illegal Tax-Change County to Chatham Justice-Starr, Terry 2009149876 2009 09 8,920 0 -81.87 Iliegal Tax-Change County to Durham Keel; Barbara 2009149910 2009 03 10,190 0 -92.18 Illegal Tax-Change County to Martin Kuhn, Ana 2009150142 2009 10 1,170 1,020 -1.34 Appraisal Appeal -Condition and Repairs Ma�tin, Adrian 2009150768 2009 03 10,670 9,176 -13.52 Appraisal Appeal-High Mileage Massey-Douglas, i Rannelle 2009150818 2009 22 10,470 -96.57 Clerical Error- Incorrect Rate Code Perry, Kristen 2009144146 2009 00 14,900 12,516 -21.73 Appraisal Appeal - High Mileage Prins, Jan 2009144324 2009 22 9,230 8,880 -5.39 Appraisal Appeal-High Mileage Sanders, Beverly 2009152312 2009 21 6,900 5,658 -20.32 Appraisal Appeal- High Mileage April 1 thru April 30, 2010 � Clerical Error 105-381(a)(1)a.(INCORRECT RATE) BOCC REGISTERED MOTOR VEHICLE REPORT Illegal Tax 105-381(a)(1)b. Appraisal Appeal 105-3302(B) MAY �H� 2��o BILLING RATE(ORIGINAL ADJUSTED FINANCIAL NAME&BILL NUMBER YEAR CODE VALUE Levy VALUE IMPACT REASON FOR ADJUSTMENT Stelia, Ruben 2009145246 2009 21 2,240 0 -66.64 Illegal Tax- Exempt Disable Veteran Swisher, Larry 200991005 2009 09 10,180 0 -116.77 Illegal Tax-Change County to Durham T H Bradley Grading � � 2009152932 2009 16 18,030 0 -166.17 Illegal Tax-Change County to Alamance T H Bradley Grading 2009152933 2009 16 18,530 0 -170.78 Illegal Tax-Change County to Alamance Thorp, Ana 2009153102 2009 22 4,470 0 -98.85 Illegal Tax- Change County to Wake Wales, Michael 2009112492 2009 21 22,010 0 -481.87 Illegal Tax-Military Exempt Home of Record (NY) Wales, Michael 2009123372 2009 21 13,230 0 -260.49 Illegal Tax-Military Exempt Home of Record (NY) TOTAL -2677.05 I TOTAL -5354.10 April 1 thru April 30, 2010 u, Militaiy Leave and Earniug Statement: Is a copy of a seiviceman's payroll stub 6 covering a particular pay period. This does list his home of record, which is his permanent state of residence where he would pay any state income taxes. Vehicle Titles Salvaged and Salvage Rebuilt: Any repairs that exceed 75% of the vehicle's market value using NADA,Keily Blue Book and various other publications. When the insurance company has totaled the vehicle, and the customer has received the claim check, four things can happen: • Insurance company can keep the vehicle. • Customer can keep the vehicle. The customer is instructed to contact the local DMV inspector to have an initial inspection done, for vehicles 2001 to 2006 (these dates change yearly, example in 2007 the models will be 2002-2007). • Affidavit of Rebuilder-The inspectar lists each pai�t that needs to be repaired. • Final inspection-if all work is cleared and approved by the inspector then the rebuilt status is then removed(salvaged status remains). Note: Finance companies will not finance a salvaged vebicle. Total Loss: Repairs were more than the market value of the vehicle and the insurance company is unwilling to pay for the repairs. Total Loss/Rebuilt: Whatever the repairs were to make the vehicle road worthy after a Total Loss status has been given. Vehicle must be 5 years old or older. Vehicie status then remains as salvaged or rebuilt. Certificate of Reconstruction: When work has been done on(vehicles 2001-2006 in year 2006) this is issued when the inspector didn't see the original damaged and the vehicle has been repaired. Cerfificate of Destruction: NC DMV will not register this type of vehicle. It is not fit for North Carolina roads. Custom Built When the customer has built this vehicle himself or hersel£ Ex. parts taken from various vehicles to build one vehicle. Three titles are required from the DMV in this case. 1)Frune 2) Transmissiou 3} Engine. Then an indemnity bond must be issued. An indemnity bond must also be issued when the vehicle does not have a title at ali. Per Fiora with NCDMV September 8,2006