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HomeMy WebLinkAboutAgenda - 10-15-2013 - 5b1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 15, 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 thirty -eight (38) taxpayers with a total of forty (40) 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. FINANCIAL IMPACT: Approval of these release /refund requests will result in a net reduction of $4,541.44 to Orange County, the towns, and school and fire districts. Financial impact year to date for FY 2013 -2014 is $25,021.80. RECOMMENDATION(S): The Interim 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. NORTH CAROLINA RES- 2013 -074 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 , 2013. Clerk to the Board of Commissioners K Clerical error G.S. 105- 381(a)(1)(a) Illegal tax G.S. 105- 381(a)(1)(b) Appraisal appeal G.S. 105- 330.2(b) BOCC REPORT - REGISTERED MOTOR VEHICLES OCTOBER 15, 2013 NAME ABSTRACT NUMBER BILLING YEAR ORIGINAL VALUE ADJUSTED VALUE FINANCIAL IMPACT REASON FOR ADJUSTMENT Aiken, Jerry 1040539 2013 34,100 0 (306.42) Changed county to Durham (Illegal tax) Aiken, Jerry 1040538 2013 11,560 0 (103.87) Changed county to Durham (Illegal tax) Aiken, Jerry 1040537 2013 12,580 0 (113.05) Changed county to Durham (Illegal tax) Allen, Brittany 1036051 2013 12,040 10,354 (27.56) High mileage (Appraisal appeal) Avelallemant , Leah Marie 1042443 2013 14,310 0 (250.43) Changed county to Union (Illegal tax) Basil, Natsua 1035661 2013 8,840 5,733 (50.82) High mileage & damage (Appraisal appeal) Baxley, Natalie 974205 2013 18,610 0 (316.66) Changed county to Alamance (Illegal tax) Bravo, Beatriz 1041750 2013 9,170 6,602 (39.56) High mileage (Appraisal appeal) Carlton, Jantzen 1039091 2013 20,380 17,119 (227.34) High mileage (Appraisal appeal) Cassara, John 8579981 2013 6,130 0 (81.41) Changed county to Alamance (Illegal tax) Christo, Gregory Robert 974424 2013 13,950 13,950 (97.03) Incorrect situs (Illegal tax) Colgan, Siobhan 1041596 2013 14,290 12,861 (23.38) High mileage (Appraisal appeal) Collins, Laura 1038786 2013 35,660 29,998 (87.21) Purchase price (Appraisal appeal) Ellis, Christopher 1041004 2013 5,850 3,978 (17.11) High mileage (Appraisal appeal) Fell, William Gary 664021 2013 8,970 7,176 (16.39) High mileage (Appraisal appeal) Fernandes, Andre Lima 942770 2013 4,840 0 (84.44) Changed county to Durham (Illegal tax) Fritz, Marc 5758587 2013 16,800 500 (269.89) Holds an antique auto plate (Appraisal appeal) Graham, Steve 664499 2013 6,600 0 (131.66) Changed county to Chatham (Illegal tax) Graves, Robert 8686639 2013 5,960 5,960 (73.16) Incorrect situs (Illegal tax) Greeson, John Rankin II 656088 2013 15,285 12,660 (24.00) High mileage (Appraisal appeal) Haufler, Kimberly 1040804 2013 3,210 2,889 (4.95) High mileage (Appraisal appeal) Hunter, James 1041537 2013 12,960 11,664 (19.97) Purchase price (Appraisal appeal) Leo, James 1041762 2013 10,090 7,265 (4.51) High mileage (Appraisal appeal) Loh, Richard 1042359 2013 20,820 11,659 (141.11) High mileage (Appraisal appeal) Malley, Patrick 1042934 2013 17,720 0 (319.86) Changed county to Durham (Illegal tax) Mestre, Sheila 666685 2013 7,301 6,977 (5.31) High mileage (Appraisal appeal) Mills, Katherine 1007544 2013 6,840 6,840 (50.39) Incorrect situs (Illegal tax) Nelson, Lisa 1037377 2013 22,460 17,968 (72.38) High mileage (Appraisal appeal) Nissan Infiniti LT 1042773 2013 44,880 0 (721.33) Changed county to Durham (Illegal tax) Omland, Gregory 1042526 2013 30,670 24,438 (96.00) Purchase price (Appraisal appeal) Perry, John Michael 1042493 2013 7,740 6,347 (21.46) High mileage (Appraisal appeal) Rabinowitz, James Robert 1042573 2013 23,600 18,559 (82.45) Purchase price (Appraisal appeal) Riedel, Victoria 1001788 2013 10,630 0 (97.17) Changed county to Wake (Illegal tax) Saleem, Radeyah 659585 2013 14,930 12,480 (32.19) High mileage (Appraisal appeal) Shreve, Mark Eugene 8655678 2013 10,780 8,624 (35.71) High mileage (Appraisal appeal) Slome, Shawn 1041695 2013 12,530 0 (137.39) Changed county to Chatham (Illegal tax) Stolt, Daniel David 1042335 2013 29,880 29,880 (27.31) System error- billed for 13 months instead of 12 (Illegal tax) Thompson, Cindy 974331 2013 12,230 0 (107.77) Changed county to Alamance (Illegal tax) Weaver, Edwin John Jr. 669687 2013 13,770 11,291 (38.18) High mileage (Appraisal appeal) Xia, Weijia 1041438 2013 11,910 10,037 (184.61) Purchase price (Appraisal appeal) Total 1 (4,541.44)1 1 September 12, 2013 thru September 25, 2013 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