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HomeMy WebLinkAboutAgenda - 03-04-1998 - 9bORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No. C~ - b ACTION AGENDA ITEM ABSTRACT Meeting Date: March 4, 1998 SUBJECT: Proposed Changes to Tax Notice Format DEPARTMENT: Tax Assessor and Tax Collector PUBLIC HEARING: (Y/1~ No BUDGET AMENDMENT: (Y/1~ No ATTACHMENT(S): 2/26/98 Tax Collector Memo Sample Tax Notice INFORMATION CONTACT: Ginger Rolfe, Tax Collector TELEPHONE NUMBERS: - -ext. 2727 Hillsborough 732-8181 Chapel Hill 968-4501 Durham 688-7331 Mebane 227-2031 PURPOSE: To consider proposed improvements to the tax notice that would provide the County with an additional effective, low cost communication method. BACKGROUND: The Tax Collector, Assessor, and staff have examined the possibility of changing the post card type tax notice that has been used for many years, to an 8~h x 11 format. This change would allow the Tax departments to provide more information that would address some of the most commonly asked questions from taxpayers. The tax bill would include graphic information about the County budget, and could include information about Town budgets (where appropriate), if the municipal governing boards indicate an interest in having that information included on tax notices. The new format would also allow the County to easily include additional informational materials for citizens when tax notices are mailed. The attached memo-from the Tax Collector identifies the benefits that could be realized from the proposed format change, some of the pros and cons of making the change in format, and the additional costs associated with the new format. If the Board determines that it would like to pursue the new format, the tax department budgets for 1998-99 will be developed to incorporate the additional postage, supply, and processing costs associated with the change. Further, the staff actions necessary to implement the changed format will be undertaken during the remainder of FY 1997-98 so that FY 1998-99 tax notices can be prepared and distributed in a timely way in July 1998. RECOMMENDATION(S): The Manager recommends that the Board approve the new format for tax notices. MEMORANDUM TO: Orange County Commissioners FROM: Ginger Rolfe, Tax Collector RE: Proposed Changes in Tax Notice Format DATE: February 26, 1998 The County has used a post card type tax notice for the past 20 years. This notice contains limited information due to its size. Tax Department personnel receive a flood of telephone calls each July when the 45,000 tax notices are mailed, and again in December and January when tax payments are due. The majority of calls cover these issues: 1) Citizens, especially new property owners and new North Carolina residents, do not understand North Carolina property tax laws. 2) Citizens do not understand how to pay their bill because they fail to, or do not realize they need to, read the back of the bill, which contains all the vital payment information. 3) Citizens do not remember receiving the bill or have misplaced it. 4) Citizens did not receive the bill because the address was incorrect or the bill was lost or not delivered by the postal service. 5) Citizens complain about the confidentiality of the notice. The Tax Assessor and Tax Collector propose to address these issues by replacing the preprinted postcard notice with an 8 1/2 x 11 inch notice. The letter size notice will allow us to: 1) Add and arrange tax billing and payment information more clearly. 2) Place individualized messages on special notices. 3) Add address correction space on the remittance stub. 4) Include a return envelope. 5) Include a graphic showing how county tax dollars are spent. 6) Put delivery point bar coding on the mailing and return envelopes. 7) Insert communication brochures explaining county services, policies, and issues. A well designer and produced letter size notice will help the Tax Assessor and Tax Collector achieve several of the outcomes listed the Fiscal Year 1997-98 budget document: / Generate, print and mai143,000 tax bills by August 1 of each year with a successful delivery rate by the post office of 99% / Increase citizen awareness of the property tax system and laws / Provide convenient ways to pay taxes by publicizing and offering several different payment methods / Reduce telephone inquiries for general and frequently asked tax questions by providing clear, concise information and explanations on all bills, notices, and letters / Maintain a high collection percentage 3 The proposed letter size notice will have many advantages over the current post card notice. We will have the citizens' undivided individual attention for a few minutes when they receive their tax notice. The citizen will be more involved with a letter size notice: opening the envelope, reading the notice, extracting the relevant information, understanding it, and taking some action based on the information presented. The notice looks professional, like those billing notices from private businesses. The County seal and address on the mailing envelope immediately identifies the sender and important nature of the mail. The mailing envelope guarantees privacy. Laser printing increases readability and eye appeal. Variable color highlights important numbers and messages. Pertinent information is placed where the citizen will easily find it. Graphics ease locating important information and contact numbers. A larger remittance stub, inclusion of a return envelope and delivery point bar coding on both the mailing and return envelopes accelerates the remittance cycle and payment processing. More payments are received by mail. Mail payments can be processed more efficiently than hand delivered payments. The easier the bill is to understand and pay, the faster the payment will be made. Larger color coded remittance stubs make it easier for the collections staff to identify and process payments. Delivery point bar coding helps the post office route mail more efficiently, which reduces delivery times, mail float, and number of pieces lost in the postal system. Preaddressed return envelopes ensure that taxpayers send their payments to the correct address. Changing the format requires that the notices be produced, folded, inserted into the mailing envelope, and mailed by an outside vendor because the county does not have the necessary equipment to produce this notice in-house. Acquisition of the sophisticated equipment and software programs that efficiently produce this type of mailing would be inordinately expensive for the county. Fifteen (15) North Carolina counties currently outsource bill production and this is a rapidly growing trend not only in local government, but in private business as well. The outside vendor designs the notice with input from tax department personnel. The vendor stocks and provides all stationary and envelopes. The vendor receives the tax information electronically from the Information Systems staff, formats it, sorts the data to meet United States Postal Service (USPS) first-class pre-sorted mail requirements, uses USPS approved addressing software to update and clean addresses, assigns delivery point bar-codes, and prints the notice using a high speed color laser printer. The notice is perforated, folded, and inserted into the mailing envelope, along with a return envelope and any inserts provided by the county. Using an outside vendor wiii not generate cost savings for the county because we are not reducing personnel or disposing equipment, but using an outside vendor is advantageous for other reasons. Right now we have overloaded conditions in the Information Systems Department due to burgeoning. technology growth and a number of other factors. We have overloaded conditions in the Tax Collector's office due to the increasing numbers of real estate and motor vehicle tax bills and questions to be handled and the billing and collection of ambulance fees. Our departments must constantly seek out methods to efficiently handle increasing workloads and demands rather than adding staff. By using an outside vendor we can reallocate the time spent by staff to produce bills and handle associated problems, to more urgent projects and activities. We can alleviate some of the production problems we have such as wait time for equipment malfunctions, poor forms quality, poor print quality, equipment maintenance, and wasted forms. We will also reduce warehousing and inventory costs, administrative costs, and waste removal costs. The chart below shows the cost analysis: Current Costs New Format Costs Increase Cost Total Annual.:. Cost Total' Annual per Piece Pieces. Cost ,per Pieee Pieces Cost Forms .0133 60,000 798 .009 60,000 540 -258 Envelopes .035 60,000 2,100 2,100 Postage .18 60,000 10,800 .238 60,000 14,280 3,480 Labor, Equipment Software, Supplies .071 60,000 4260 4,260 Design of Notice .0042 60,000 250 250 OA{E TIME CHARGE Data File Set Up .0016 60,000 t00 100 ONE TIME CHARGE Address Correction .O1 60,000 600 600 Software Inserts 0 0 0 0 _,z..~ 9~: .368 6f1,00d; ~: $10;532= The Tax Assessor and Tax Collector request that the Board of Commissioners approve a change in the tax notice format from a postcard to a letter size notice with a mailing and a return envelope. Approval of the format change involves the following: 1) Approval to contract with an outside vendor to produce, insert, and mail tax notices. 2) Approval of the increase in professional contract services budget line item and postage budget line item necessary to contract with an outside vendor to make the necessary changes. 3) Approval to transfer the cost of inserting additional communication in with the tax bill and additional postage costs, if incurred, to the originating department. County Of Orange Office Of The City/County Tax Collector (linger B. Rolfe, Tax Collector P.O. Box 8181 Hillsborough, NC 27278 CURRENT BILL PAST DUE AFTER JANUARY 5, 1998 «NEWOWNER» «NEWOWNER 1» «NOAO» «NOA1» «NOA2» aNOA3» OFFICE INFORMATION Location: Government Services Center 200 S. Cameron Street Hillsborough, NC 27278 Hours: 8:00 a.m. - 5:00 p.m. Monday -Friday Phones: (919) 732-8181 ext. 2725, 2728, 2730 Facsimile (919) 644-3091 5 TRACT NUMBER MAB REFERENCE YEAR & BILL NUMBER PROPERTY DESCRIPTION «TRACTNUMBER» «MAP» aBiLLNUMBER» «PROPDESC» PERSONAL PROPERTY VALUE REAL PROPERTY VALUE TOTAL TAX VALUE. «PERSVAL_» «REALVAL_» «TOTVAL » - TAX. RATE PER. $ I00 VALUE- TOTAL DUE $«RATE» $«TOTAL » Calculation of Bill: Total Tax Value x Tax Rate (tax. rata is per $100 value) =Total<Due r GNF1Q Ai CiiNn cvutcuir~m~~nc~a DEducation, 47% OHuman Services, 24% Public Safety, 9% ^Public Works, 4% ^All Other, 11% ^Community Service 8 Gen Administratlon, 5% -.vr. ................ ....~~ Education -Includes current expense appropriation, recurring and long range capital, and debt service on school construction bonds. Human Services -Includes Social Services, Health, Cooperative Extension, Recreation/Patks, Aging, Transportation, Human Rights and Relations, Child Support, and grants to non-profit agencies. Public Safety -Includes the Sheriff's Department, Domestic Violence Program, and Emergency Management Services, which is comprised of 91 I Telecommunications, Emergency Medical Service, and Fire Mazshall. Public Works -Includes County Bui-dings and Grounds, Rent, Motor Pool, and Sanitation, including maintenance of the solid waste collection sites. All Other -Includes Register of Deeds, Tax Assessor and Collector, Land Records, Planning and Inspections, and the EDC. [t also includes County capital projects and debt. Community Service & General Administration -Includes County's costs for the Courts, Elections, Budget, Personnel, Finance, Purchasing, Central Services, Data Processing, Soil and Water Conservation, Manager's and Commissioners' Offices. MESSAGES -This is a duplicate: of the 15197 Orange County tax bill. The original bill was prepared. in the name of the record owner as of January I as provided by law. Orange County Land' Records--Office indicates that you acquired this property during 1997. DHTACH AND RIIbT THIS PORTION WITH PAYb1ENi' TRACT NUMBER ~ ,DESCRIPTION YEAR & BILL NUMBER TOTAL. DUE «TRACTNUMBER» «PROPDESC» «BILLNUMBER» $«TOTAL » CURRENT BILL PAST DUE AFTER JANUARY 5, 1998 TO CHANGE YOUR MAILING ADDRESS, PLEASE FILL IN YOUR NEW ADDRESS AT THE RIGHT MAKE CHECK PAYABLE & REMIT TO: ORANGE COUNTY TAX COLLECTOR P.O. BOX 8181 HILLSBOROUGH, NC 27278 ADDRESS: CITY: PROPERTY TAX NOTICE IMPORTANT -PLEASE READ FRONT AND BACK OF NOTICE CAREFULLY STATE: ZIP: «NEWOWNER» «NEWOWNER_1» «NOAO» «NOA1» « NOA2» «NOA3» PLEASE RETURN THIS PORTION WITH PAYMENT INFORMATION TAX VALUE & OWNERSHIP The value and ownership of real property shall be determined as of January 1, pursuant to the North Carolina General Statutes. It is the duty of the Tax Assessor to appraise all real and personal property. If you have questions regarding the tax value of your property, call the Orange County Tax Assessor at (919)732-8181, ext. 2100. If you have questions regarding ownership, call the Orange County Land Records Office at (919)732-8181, ext. 2500.' TAX RATE County, fire district, and Chapel HilUCarrboro school district tax rates are set annually by the Orange County Board of Commissioners when the budget is adopted in June. Municipal tax rates are set annually by the respective Council or Board of Aldermen. If you have questions regarding county and special district tax rates, call the Orange County Budget Office at (919)732-8181, ext. 2151 or the Orange County Board of Commissioners' Office at (919)732-8181, ext. 2130. DUE DATE Real property taxes are due annually on September 1. l axes may be paid without penalty during the months of August. September, October, November and December. Orange County real property bills are !, mailed in July of each yeaz. ESCROW ACCOUNTS If you have an escrow account with a financial institution, taxes should be paid by them or their tax servicing agent. As a general practice, financial institutions request duplicate bills from our office and usually remit payment between November 15 and December 31. You may wish to verify your payment data with your financial institution. CHANGE IN OWNERSHIP If the real property described on this notice has been sold, please forward this tax notice to the new owner. When property is sold prior to the creation of the tax bill, it is the general practice of N.C. attorneys to make adjustments for the payment of taxes on the closing statement. Payment is not generally made to the tax office. After the creation of the tax bills, taxes are normally paid at closing. If you have any questions regarding who is responsible for payment of the bill, please refer to the closing statement or contact your attorney. FAYMEI+IT tNFOItMA'TIOAI ~ PAYING YOUR BILL BY MAIL Please make checks payable to the Orange County Tax Collector. Mail payments to: Orange County Tax Collector, P.O. Box 8181, Hillsborough, NC 27278. Include the lower portion of this bill with payment. A receipt will be supplied only upon request. For income tax purposes we prefer that you retain the lower portion of the bill and your canceled check. PAYING YOUR BILL IN PERSON Please bring your entire bill if' 'paying in person. There are two locations for payment: Orange County Government Services Center, 200 S. Cameron St., Hillsborough, NC or Chapel Hill Town Hall, 306 N. Columbia St., Chapel Hill, NC. Office hours are Monday through Friday, 8:00 a.m. to 5:00 p.m. for the Hillsborough location and Monday through Friday, 8:30 a.m. to 4:30 p.m. for the Chapel Hill location. PAYING YOUR BILL AFTER HOURS If you prefer to pay your bill in person but are unable to do so during regular office hours, we have a drop box located at the entrance to the Government Services Center, 200 S. Cameron St., Hillsborough, NC. ADDITIONAL INFORMATION 6 -< ES 8~ CO LATE PAYMENT CHARGES Taxes are delinquent after January 5. Interest begins January 6 at a rate of 2%. 3/4 of 1% interest is added each month thereafter until taxes are paid in full. Payments submitted by mail are deemed to be received as of the date of the United States postal service mark. The United States postal service mark must be affixed or payment will be deemed to be received when the payment is received imthe Office of the Tax Collector. COLLECTION PROCEDURES Delinquent taxes will be collected through garnishment of wages, attachment of bank deposits, levy on personal property, foreclosure on real property. These remedies are made available to the Tax Collector by the North Carolina General Statutes. Delinquent real property taxes are advertised in March in the name of the listing taxpayer as of January t ownership. RETURNED CHECK CHARGE A ten percent (10%) penalty will be charged for any check returned due to insufficient funds, [N.C.G.S. 105- 357(b)(2)], plus any additional interest and penalty, plus any criminal penalties provided by law. Tax receipts are null and void if payment is made with a check that fails to clear the bank. ~`^ Want more information on Orange County Government? Contact us by E-Mail !! > Visit the Orange County Website Q www.co.orange.ne.us/orange/ Ginger B. Rolfe, Tax Collector can ~ ~ be reached at grolfe@ co.orange.nc.us \i- ~ -~ TELL US WHAT YOU THINK!!!! --- We are considering changing our current post card billing format to a new format, similar to that of utility bi tugs. T is t is a propose samp e. e change in format is one way to provide more information to the citizen. In addition, we can educate our citizens about how property tax dollars and other revenues in the general fund are spent. We want to know what you think of the format and information presented. Please fill out the Survey below and r eturn with your payment. If your taxes are paid through escrow, we still want to hear from SURVEY Needs Effective Highly Excellent Improvement Effective Format & Layout ^ ^ ^ ^ Information Presented ^ ^ ^ ^ Readability ^ ^ ^ ^ Ease of Understanding ^ ^ you! You can also respond by email or by telephone. SUGGESTIONS