HomeMy WebLinkAboutAgenda - 05-01-2012 - 5bORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: May 1, 2012
Action Agenda
Item No. 5 - b
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 release/refund resolution related to four (4) 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
$875.52 to Orange County, the towns, and school and fire districts. Financial impact year to
date for FY 2011-2012 is $61,820.37.
RECOMMENDATION(S): The Manager recommends that the Board:
• Accept the report reflecting the four motor vehicle property tax release/refunds requested
in accordance with the NCGS; and
• Approve of the attached refund resolution.
NORTH CAROLINA ~ ~ S - ~O ~ « - O ~ ~
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 ta~ces when the Board of County Commissioners determines that a taxpayer applying forthe
release/refund has a valid defense to the t~ imposed; and
Whereas, the properties listed in each of the attached "Request for Property Taat 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 Taac 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 taat imposed as indicated on the Request for Property Taac Refund/Release.
NOW, THEREFORE, IT IS RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF ORANGE COUNTY THAT the recommended property taxrefund(s) and
release(s) are approved.
Upon morion 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 faregoing 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
, 2012.
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) May �� 20�2
ABSTRACT BILLING ORIGINAL ADJUSTED FINANCIAL
NAME NUMBER YEAR VALUE VALUE IMPACT REASON FOR ADJUSTMENT
Anderson,Randy Lee 327563 2010 5,840 0 (129.18)Military leave and earning statement home of record is CA(illegal tax)
Anderson, Rand Lee 327563 2009 6,670 0 (153.30) Milita leave and earnin statement home of record is CA(Ille al tax)
Covington,James Daven ort 992703 2011 32,960 0 537.72) Change county to Durham(Illegal tax)
McCormick,Timothy 992183 2011 15,970 10,032 55.32) Price paid(Appraisal appeal)
Total 875.52
�P
March 29, 2012 thru April 11, 2012
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 t~es.
Vehicle Titles
Salvaged and Salvage Rebuilt: Any repairs that exceed 75% of the vehicle's market
value using NADA, Kelly Blue Book and vaxious 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 a11 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