HomeMy WebLinkAboutAgenda - 04-23-2013 - 5b 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: April 23, 2013
Action Agenda
Item No. 5-b
SUBJECT: Motor Vehicle Property Tax Releases/Refunds
DEPARTMENT: Tax Administration PUBLIC HEARING: (Y/N) No
ATTACHMENT(S): INFORMATION CONTACT:
Resolution Dwane Brinson, Tax Administrator,
Releases/Refunds Data Spreadsheet 919-245-2726
Reason for Adjustment Summary
PURPOSE: To consider adoption of a resolution to release motor vehicle property tax values
for twenty-five (25) taxpayers with a total of seventy-one (71) 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.
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.
Of the seventy-one (71) bills, forty-eight (48) are due to recent changes in the State's
requirements for government agencies using permanent license plates for vehicles. The
changes resulted in these vehicles being billed when they should not have been due to their tax
exempt status.
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FINANCIAL IMPACT: Approval of these release/refund requests will result in a total reduction
of $8,522.95 to Orange County, the towns, and school and fire districts. Financial impact year to
date for FY 2012-2013 is $65,181.28.
Of the $8,522.95, over half ($4,666.32) is due to the aforementioned license plate regulations
change at the State level. This revenue was not expected, and the release of this amount has
no impact. Therefore, the net reduction to Orange County, the towns, and school and fire
districts would be $3,856.63.
RECOMMENDATION(S): The Manager recommends that the Board:
• Accept the report reflecting the motor vehicle property tax releases/refunds requested in
accordance with the NCGS; and
• Approve the attached refund resolution.
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NORTH CAROLINA RES-2013-026
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 for the
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 a refund 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 proceedings.
WITNESS my hand and the corporate seal of said County,this day of
12013.
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
APRIL 23, 2013
NAME
ABSTRACT
NUMBER
BILLING
YEAR
ORIGINAL
VALUE
ADJUSTED
VALUE
FINANCIAL
IMPACT
REASON FOR ADJUSTMENT
Adolph, Darwin
959808
2012
2,140
2,140
(43.40)
Incorrect situs address (Clerical error)
Baker, Brian
1024237
2012
24,820
22,338
(22.54)
High mileage (Appraisal appeal)
Bass, Stephanie
1027387
2012
2,600
1,600
(8.99)
High mileage (Appraisal appeal)
Charles, John Richard
960462
2012
8,880
0
(166.79)
County changed to Randolph (Illegal tax)
Clark Unlimited L.L.C.
1024795
2012
37,770
0
(640.90)
DMV error (Illegal tax)
Cornelius, Delores
956579
2012
13,790
8,826
(76.34)
High mileage (Appraisal appeal)
Dwane, Richard John
1028886
2012
29,650
0
(486.73)
County changed to Durham (Illegal tax)
Earp, Lila
1029105
2012
2,910
0
(77.60)
County changed to Durham (Illegal tax)
Ebenezer Baptist Church
1025694
2012
19,060
0
(174.95)
Tax exempt (Illegal tax)
Freedom House Recovery
1004042
2012
6,280
0
(135.92)
Tax exempt (Illegal tax)
Fulbright, Tiffany
1011600
2012
9,560
0
(197.72)
County changed to Ashe (Illegal tax)
Gattis, Melvin
998450
2012
12,340
0
(116.73)
County changed to Durham (Illegal tax)
Henshaw, Cynthia
631361
2012
12,530
11,026
(23.18)
High mileage (Appraisal appeal)
Long, Karen
639737
2012
16,170
13,906
(37.04)
High mileage (Appraisal appeal)
O.E. Enterprises
1029140
2012
1,500
0
(10.00)
Tax exempt (Illegal tax)
O.E. Enterprises
1029142
2012
1,500
0
(10.00)
Tax exempt (Illegal tax)
O.E. Enterprises
1029141
2012
4,480
0
(10.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027998
2012
6,960
0
(143.85)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027164
2012
2,200
0
(65.99)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027195
2012
2,710
0
(74.33)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027197
2012
4,510
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027198
2012
2,540
0
(71.55)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027223
2012
5,300
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027228
2012
2,150
0
(65.17)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027229
2012
4,710
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027242
2012
4,950
0
(110.98)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027245
2012
3,350
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027268
2012
6,700
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027288
2012
3,430
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027314
2012
5,970
0
(127.66)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027355
2012
4,710
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027364
2012
3,560
0
(88.23)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027384
2012
4,110
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027398
2012
8,660
0
(171.66)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1 10274001
20121
1,720
1 0
58.14
Tax exempt (Illegal tax)
March 21, 2013 thru
April 3, 2013
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
APRIL 23, 2013
NAME
ABSTRACT
NUMBER
BILLING
YEAR
ORIGINAL
VALUE
ADJUSTED
VALUE
FINANCIAL
IMPACT
REASON FOR ADJUSTMENT
Orange Water and Sewer Authority
1027418
2012
1,910
0
(61.25)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027433
2012
8,260
0
(165.11)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027440
2012
4,990
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027468
2012
3,350
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027471
2012
3,220
0
(82.68)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027512
2012
2,150
0
(65.17)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027521
2012
7,850
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027544
2012
6,480
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027569
2012
7,070
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027571
2012
8,180
0
(163.80)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027575
2012
2,150
0
(65.17)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027585
2012
3,450
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027600
2012
8,180
0
(163.80)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027603
2012
2,310
0
(67.79)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027818
2012
15,030
0
(30.00)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1027918
2012
8,700
0
(172.32)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1028160
2012
12,990
0
(242.48)
Tax exempt (Illegal tax)
Orange Water and Sewer Authority
1028173
2012
30,420
0
(30.00)
Tax exempt (Illegal tax)
Pillot, Jeffrey
1028411
2012
32,120
0
(524.77)
County changed to Durham (Illegal tax)
Residential Services Inc.
992580
2012
17,660
0
(302.03)
Tax exempt (Illegal tax)
Residential Services Inc.
1025058
2012
1,500
0
(53.11)
Tax exempt (Illegal tax)
Residential Services Inc.
1025230
2012
4,990
0
(106.86)
Tax exempt (Illegal tax)
Residential Services Inc.
1025306
2012
3,370
0
(81.91)
Tax exempt (Illegal tax)
Residential Services Inc.
1025779
2012
10,520
0
(192.05)
Tax exempt (Illegal tax)
Residential Services Inc.
1025849
2012
15,270
0
(265.22)
Tax exempt (Illegal tax)
Residential Services Inc.
1025881
2012
15,510
0
(268.92)
Tax exempt (Illegal tax)
Residential Services Inc.
1025897
2012
10,200
0
(187.13)
Tax exempt (Illegal tax)
Residential Services Inc.
1025977
2012
8,510
0
(161.09)
Tax exempt (Illegal tax)
Shukla, Veda
9923158
2012
16,020
0
(276.77)
County changed to Wake (Illegal tax)
Siatini, Jennifer
986747
2012
9,610
0
(178.03)
County changed to Alamance (Illegal tax)
Stadter, Philip
641872
2012
1,590
0
(54.49)
County changed to Chatham (Illegal tax)
Stapleton, Aileen
1026527
2012
24,650
20,706
(64.52)
High mileage (Appraisal appeal)
Taylor, Marguerite
1023522
2012
18,260
15,338
(32.86)
High mileage (Appraisal appeal)
Tolton, Mark
1027909
2012
15,370
0
(266.76)
County changed to Durham (Illegal tax)
Tolton, Mark
1028486
2012
29,160
0
(479.18)
County changed to Durham (Illegal tax)
Welch, Joan Michels
959134
2012
3,330
0
(81.29)
County changed to Chatham (Illegal tax)
Total
8, 522.95
March 21, 2013 thru
April 3, 2013
Military Leave and Earning Statement: Is a copy of a serviceman's payroll stub 6
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