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Home My WebLink AboutAgenda - 02-15-2011 - 4cORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: February 15, 2011 Action Agenda Item No. q-'"t/ SUBJECT• Motor Vehicle Property Tax Release/Refunds DEPARTMENT: Tax Administration PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Resolution Release/Refund Data Spreadsheet Reason for Adjustment Summary INFORMATION CONTACT: Jo Roberson, Tax Administrator 919-245-2727 PURPOSE: To consider adoption of a refund resolution related to thirty-one (31) 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: Approval of these release/refund requests will result in a net reduction of $4,529.56 to Orange County, the towns, and school and fire districts. Financial impact year to date for FY 2010-2011 is $32,721.82. RECOMMENDATION(S): The Manager recommends that the Board: • Accept the report reflecting the 31 motor vehicle property tax release/refunds requested in accordance with the NCGS; and • Approve of the attached refund resolution. NORTH CAROLINA ~ ~ ~ _ ~ ~ I ~ _ D l ORANGE COUNTY REFUND/RELEASE RESOLUTION (Approval) Whereas, North Carolina General Statutes 105-381 and/or 330.2(B) allows for the refund and/or release of taxes when the Board of County Commissioners determines that a taxpayer applying forthe release/ refund has a valid defense to the tax imposed; and Whereas, the properties listed in each of the attached "Request for Property Tax Refund/ Release" has been taxed and the tax has not been collected: and Whereas, as to each. of the properties listed in the Request for Property Tax Refund/ Release, the taxpayer has timely applied in writing for arefund or release of the tax imposed and has presented a valid defense to the tax imposed as indicated on the Request for Property Tax Refund /Release. NOW, THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF ORANGE COUNTY THAT the recommended property tax refund (s) and release(s) are approved. Upon motion duly made and seconded, the foregoing resolution was passed by the following vines: 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 the 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 true copy of so much of said proceedings of said Board as relates in any way to the passage of the resolution described in said proceedings. WITNESS my hand and the corporate seal of said County, this day of 2011. 3 Clerk to the Board of Commissioners Clerical Error 105-381(a)(1)a.(INCORRECT RATE) BOCC REGISTERED MOTOR VEHICLE REPORT Illegai Tax 105-381(a)(1)b. Appraisal Appeal 105-330.2(B) FEBRUARY �rJtFl, 2011 ABSTRACT BILLING ORIGINAL ADJUSTED FINANCIAL NAME NUMBER YEAR VALUE VALUE IMPACT REASON FOR ADJUSTMENT Baldwin,Chenyqua 950335 2010 24,320 0 (404.63) Illegal Tax-County Chan ed to Chatham Borg,Walter 948729 21,370 13,249 (125.09) Appraisal Appeal-High Mileage Debree, Daniel 623490 16,840 15,156 (15.52)Appraisal Appeal-High Mileage Dolan,Christine 951170 2010 30,830 0 (275.56) Illegal Tax-Count Changed to Chatham Eberle,George 949845 10,260 9,234 (15.16) Appraisal Appeal-High Mileage Fjellstedt,Thorsten 608463 7,920 6,336 (24.39)Appraisal Appeal-High Milea e _ _ _—. Guan,Jian 608963 2010 5,800 4,176 (25.01) Appraisal Appeal-High Mileage Howard, Rade ah 609518 2010 13,600 11,424 (33.52)Appraisal Appeal-High Mileage Hutton-Howe, Ramona 948022 3,880 3,799 (1.24) Appraisal Appeal-Price Paid Illegal Tax-Military Leave and Earning Statement Home of Record Kehren,Jessica 572210 2009 20,650 0 (403.57) MN Illegal Tax-Military Leave and Earning Statement Home of Record Kehren,Jessica 581248 2009 20,650 0 (356.53) MN ' Koskinen, Peter 948859 7,950 500 (66.59) Appraisal Appeal-Has an Antique Plate Kress, Lance 590792 2010 12,500 10,750 (15.64)Appraisal Appeal-High Mileage — Kruczynski, Laura 948253 10,480 8,902 (24.30) Appraisal Appeal-High Mileage&Repair Estimate Lee,Thomas 610322 19,960 17,980 (32.39)Appraisal Appeai-Repair Estimate Lemaster, Michael 610337 2010 9,040 7,232 (16.84)Appraisal Appeal-High Mileage ; Mangano,Thomas 610652 2010 12,590 (6.47) Clerical Error-Incorrect Rate Code Me er,Allison 591750 2010 8,280 0 (157.54) Illegal Tax-County Changed to Durham Phillips, Paul 658942 2010 11,000 0 (107.55) Illegal Tax-County Chan ed to Caswell Ross, Robert 583836 2010 7,570 0 (154.44) Illegal Tax-County Changed to Chatham Ross,Robert 603355 2010 18,180 0 (324.04) Illegal Tax-County Changed to Chatham Shareshian, Paul 603724 13,120 11,546 (27.05) Appraisal Appeal-High Mileage Southern Landscaping 949885 49,220 0 (539.65) Illegal Tax-County Changed to Chatham Stewart, Randal 613066 2010 4,410 3,969 (3.97)Appraisal Appeal-High Mileage Tullai,Twila 951474 2010 32,930 0 (537.25) Illegal Tax-County Changed to Alamance Tullai,Twila 951475 2010 10,480 0 (191.43) Ille al Tax-County Changed to Alamance ' Wesoloski, Pamela 613912 2010 13,120 (85.23)Clerical Error-Incorrect Rate Code Widma er,Jeffre 595066 4,790 0 (112.27) Illegal Tax-County Changed to Durham Williams,Arden 568007 6,840 (80.01) Clerical Error-Incorrect Rate Code Wolf,Debra 951480 2010 18,820 0 (319.91) Illegal Tax-County Changed to Alamance Wollum, Donald 949304 2010 5,575 500 (46.77) Appraisal Appeal-Has an Antique Plate 4,529.56) TAL January 14th, 2011 thru January 28th, 2011 � Military Leave and Earning Statement: Is a copy of a serviceman's payroll stub 5 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, Kelly 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 inspector lists each part 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 vehicle. 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. Vehicle 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. Certificate 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 herself. Ex. parts taken from various vehicles to build one vehicle. Three titles are required from the DMV in this case. 1) Frame 2) Transmission 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 all. Per Flora with NCDMV September 8, 2006