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Home My WebLink AboutAgenda - 06-21-2011 - 5cORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 21, 2011 Action Agenda Item No. ~.G 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: Jenkins S. Crayton, 919-245-2735 PURPOSE: To consider adoption of a refund resolution related to 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 $2,498.91 to Orange County, the towns, and school and fire districts. Financial impact year to date for FY 2010-2011 is $68,261.37. 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 R 1= J" ~~ (I ~ ~~ 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 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 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 proceedmgs. 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 Illegal Tax 105-381(a)(1)b. Appraisal Appeal 105-330.2(B) .�U N E 2�, 2011 ABSTRACT 'BILLING ORIGINAL ADJUSTED FINANCIAL NAME NUMBER YEAR VALUE VALUE IMPACT REASON �OR ADJUSTMENT Illegal Tax-Military Leave and Earnin� Statement Home of Adams, Dwayne 963410 2010 22,880 0 (404.27) Record is VA Arab,Alexander 962552 2010 20,010 17,609 (27.01) Appraisal Appeal-High Mileage Bedot,John Peter 963372 2010 4,200 2,100 (18.88) Appraisal Appeal-High Mileage Illegal Tax-Military Leave and Earning Statement Home of Casperson, Sean 955054 2010 10,260 0 (198.31) Record is FL Collman, Mitchell 644336 2010 12,840 11,556 (19.�8) Appraisal Appeal-High Mileage Hagy,Judith Moss 645637 2010 12,840 11,299 (23.73) Appraisal Appeal-High Mileage Hankerson,Allen Leroy Jr 943220 2010 10,310 0 (92.88) Illegal Tax-Double Billed Hermey, Kenneth 645864 2010 3,890 1,265 (24.10) Appraisal Appeal-Purchase Price Howard,Wallace 646083 2010 18,770 16,893 (17.31) Appraisal Appeal-High Mileage Kent, Charles Eugene Jr 646468 2010 3,050 2,684 (3.36)Appraisal Appeal-High Mileage Lee,Gang 963516 2010 14,580 12,247 (35.95) Appraisal Appeal-High Mileage Lowe, Richard Emory 63977� 2010 5,220 0 (101.41) Illegal Tax-County Changed to Chatham Lynch,Jamel Pleasant Jr 646923 2010 5,680 4,998 (11.15) Appraisal Appeal-High Mileage MacGregor, Hugh 639848 2010 9,490 0 (176.18) Illegal Tax-County Changed to Durham Maready, Michael 963497 2010 15,720 7,860 (70.26) Appraisal Appeal-Holds a Total Loss Title Martin, Randall 64704•6 2010 10,460 8,577 (30.81) Appraisal Appeal-High Mileage Mebane Transport Co 961993 2010 4,990 0 (45.14) Illegal Tax-Rolling Stock Mebane Transport Co 961853 2010 8,060 0 (72.91) Illegal Tax-Rolling Stock Illegal T�x-Military Leave and Earning Statement Home of Nudelman, Devon 962798 2010 7,530 0 (153.18) Record is TX Pickett, Deanna 686272 2010 8,325 6,324 (18.37) Appraisal Appeal-High Mileage Potter,Joshua Laurence 686346 2010 10,260 6,977 (29.70) Appraisal Appeal-High Mileage Quinn,,Brian 693749 2010 3,370 270 (27.70) Appraisal Appeal-Purchase Price Rideout,William Eric 686581 2010 25,979 0 (400.18) Illegal Tax-Military Nato Status-Canadian Forces Ringo,Timothy Daniel 962949 2010 16,680 16,070 (5.51) Appraisal Appeal-Purchase Price Rowe,Suzanne Blackwood 961230 2010 13,290 11,342 (30.01) Appraisal Appeal-Purchase Price Schuck,.Robert Nathaniel 962929 2010 12,380 6,190 (101.26) Appraisal Appeal-Holds a Rebuilt Title Titch,James Franklin 962224 2010 8,790 6,505 (21.06)Appraisal Appeal-High Mileage ' Triangle Country Dancers 962124 2010 1,000 400 (5.40) Appraisal Appeal-Purchase Price _ Watkins,Joanne 642603 2010 9,800 0 (180.95) Illegal Tax-Counry Changed to New Hanover Wells,John Joseph 642669 2010 8,080 6,949 (18.50) Appraisal Appeal-High Mileage Yeager,Thomas 963393 2010 12,350 0 (133.65) (llegal Tax-Disabled Veteran Miltary Exemption TOTAL (2,498.91) � May 23, 2011 thru June 3, 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 cheek, 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 inspectorlists 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