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HomeMy WebLinkAboutAgenda - 02-19-2013 - 5b ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date:February 19, 2013 Action Agenda Item No.5-b SUBJECT: Motor Vehicle Property Tax Releases/Refunds DEPARTMENT:PUBLIC HEARING: (Y/N)No Tax Administration ATTACHMENT(S):INFORMATION CONTACT: ResolutionDwane Brinson, Tax Administrator, Releases/RefundsData Spreadsheet919-245-2726 Reason for Adjustment Summary PURPOSE: To consider adoption of a resolution to release motor vehicle property tax values forthirty (30) taxpayers with a total of thirty-three (33) bills that will result in a reduction of revenue. 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. NCGS105-381(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 $2,361.74to Orange County, the towns, and school and fire districts.Financial impact year to date for FY2012-2013 is $40,170.07. RECOMMENDATION(S): The Manager recommendsthat the Board: Accept thereport reflecting themotor vehicle property tax releases/refunds requested in accordance with the NCGS; and Approve the attached refund resolution. RES-2013-010 NORTH CAROLINA ORANGE COUNTY REFUND/RELEASE RESOLUTION(Approval) Whereas, North Carolina General Statutes 105-381 and/or 330.2(b) allows for the refundand/or releaseof taxes when the Board of County Commissioners determines that a taxpayer applying for the release/refundhas a valid defense to the tax imposed; and Whereas, the properties listed in each of the attached “Request for Property TaxRefund/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 TaxRefund/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 taxrefund(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 heldon ____________________, 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 ____________, 2013. ___________________________________ Clerk to the Board of Commissioners Clerical error 105- 381(a)(1)a.(incorrect rate) Illegal tax 105- 381(a)(1)b. Appraisal appeal 105- 330.2(b) BOCC REPORT REGISTERED MOTOR VEHICLE FEBRUARY 79, 2073 NAME ABSTRACT NUMBER BILLING YEAR ORIGINAL VALUE ADJUSTED VALUE FINANCIAL IMPACT REASON FOR ADJUSTMENT Al Bjaly, Jad Gorge Tawfeeq 986179 2012 97750 97750 (30.47) Incorrect rate code (Clerical error) Armstrong, Nancy Anne 614552 2012 117910 97528 (36.70) High mileage (Appraisal appeal) Arrington, Herbert 614561 2012 37520 17760 (19.79) Total loss title (Appraisal appeal) Bergland, Gregory 614814 2012 227490 187892 (47.78) High mileage (Appraisal appeal) Boswell, Kelsey 1021693 2012 167430 0 (153.06) County changed to Alamance (Illegal tax) Bridgwater, Floyd 615048 2012 127310 107587 (26.53) High mileage (Appraisal appeal) Brown, Thomas 615136 2012 107120 87703 (12.87) High mileage (Appraisal appeal) Brown, Thomas 954114 2012 277900 277300 (2.72) High mileage (Appraisal appeal) Clark, Brian Robert 1022705 2012 77070 0 (65.86) County changed to Caswell (Illegal tax) Cox, Katherine 986677 2012 137500 107800 (24.43) High mileage (Appraisal appeal) England, Robert 1020887 2012 37050 0 (28.41) County changed to Durham (Illegal tax) Fesel, Frederick 1021125 2012 27780 0 (24.98) County changed to Durham (Illegal tax) Fine, James 616543 2012 57480 57480 (54.33) Incorrect rate code (Clerical error) Fine, James 1009559 2012 37000 37000 (43.32) Incorrect rate code (Clerical error) Gigliotti, Shannon 1020991 2012 67600 67600 (60.58) County changed to Durham (Illegal tax) Hardesty, Eva 1003460 2012 97280 97280 (192.81) County changed to Henderson (Illegal tax) Hoopes, Kyle 984896 2012 87940 77331 (26.32) High mileage (Appraisal appeal) Human Kindness Foundation 1012548 2012 37370 0 (32.48) Property exempt (Illegal tax) Lee, Nancy Suman 618407 2012 117720 87438 (50.56) High mileage (Appraisal appeal) Mahmoud, Tamer 1022098 2012 257210 0 (418.34) County changed to Durham (Illegal tax) Mcmillan, Donald Jonathan 1018966 2012 227830 207939 (30.93) Price Paid (Appraisal appeal) New South Building Co. 1005062 2012 67230 67230 (61.14) Incorrect rate code (Clerical error) Picotte, Vincent 619735 2012 107470 57235 (48.05) High mileage and damage (Appraisal appeal) Reily, William 1022067 2012 207880 157622 (49.82) High mileage and damage (Appraisal appeal) Richards, Thomas 620043 2012 187970 187495 (4.26) High mileage (Appraisal appeal) Schultz, Hannah 620396 2012 77540 77540 (82.58) Incorrect rate code (Clerical error) Shreve, Mark 620541 2012 127600 107332 (37.09) High mileage (Appraisal appeal) Siler, Sean 1018605 2012 317510 227448 (139.60) High mileage and damage (Appraisal appeal) Siler, Sean 1018112 2012 137370 87824 (70.03) High mileage (Appraisal appeal) Soo, Mary 954434 2012 37140 500 (24.23) Holds an antique plate (Appraisal appeal) Starner, William 1021694 2012 137280 0 (119.33) County changed to Durham (Illegal tax) Teer, Dorothy 1020801 2012 67330 0 (255.01) County changed to Durham (Illegal tax) Tepperman, Barbara 986787 2012 87140 87140 (87.33) Incorrect rate code (Clerical error) Total (27361.74) January 16, 2013 thru January 30, 2013 Military Leave and Earning Statement : Is a copy of a serviceman’s payroll stub 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