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HomeMy WebLinkAboutAgenda - 10-07-2014 - 6bORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: October 7, 2014 Action Agenda Item No. 6 -b SUBJECT: Motor Vehicle Property Tax Releases /Refunds DEPARTMENT: Tax Administration PUBLIC HEARING: (Y /N) I 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 -two (22) taxpayers with a total of twenty -two (22) 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 $4,428.89 to Orange County, the towns, and school and fire districts. Financial impact year to date for FY 2014 -2015 is $10,019.72. 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 release /refund resolution. 3 NORTH CAROLINA RES- 2014 -060 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 , 2014. Clerk to the Board of Commissioners 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 7, 2014 NAME ABSTRACT NUMBER BILLING YEAR ORIGINAL VALUE ADJUSTED VALUE FINANCIAL IMPACT REASON FOR ADJUSTMENT Blalock, James 22047245 2013 197460 197460 (170.93) Situs error (Illegal tax) Brooks, Cecil 21261439 2013 127400 500 (106.93) Acquired an antique auto plate (Appraisal appeal) Cameron, Freda H. 21964077 2014 117130 - (216.51) County changed to Chatham (Illegal tax) Campbell, Andy 20602830 2013 287495 287495 (220.74) Situs error (Illegal tax) Cross, Anthony Levon 1009952 2012 77930 - (104.38) County changed to Chatham (Illegal tax) Doby, Steve Edward 22403242 2013 127800 500 (112.91) Acquired an antique auto plate (Appraisal appeal) Evans, Samuel Wade 22517180 2013 147300 500 (129.43) Acquired antique auto plate (Appraisal appeal) Florence, Matthew Roger 21330514 2013 347670 347670 (307.13) Situs error (Illegal tax) Gathy, Stephen 21410870 2013 247400 500 (377.72) Acquired an antique auto plate (Appraisal appeal) Glenn, Harvey Dwayne 22079505 2014 197620 197620 (172.09) Situs error (Illegal tax) Lepisto, Chad 19761788 2013 117830 - (225.88) County changed to Chatham (Illegal tax) Messier, Erin Kristin 1043774 2013 117600 - (225.65) County changed to Chatham (Illegal tax) Park, Nicholas Brock 21766115 2014 77500 77500 (150.78) County changed to Durham (Illegal tax) Schreiber, James 22391866 2013 207400 500 (314.50) Acquired an antique auto plate (Appraisal appeal) Sheppard, John 21934525 2013 207100 500 (176.13) Acquired an antique auto plate (Appraisal appeal) Spellman, Elizabeth 21822045 2013 177570 177570 (159.64) Situs error (Illegal tax) Stashko, Michael Alexander 14496067 2013 197520 197520 (338.49) County changed to Durham (Illegal tax) Stone, Jonathan Lawrence 1044090 2013 187200 0 (351.44) County changed to Chatham (Illegal tax) Timothy, Robert 21701112 2014 127770 47793 (133.68) Price paid (Appraisal appeal) Tunstall, Timothy 22267086 2013 147700 500 (131.78) Acquired an antique auto plate (Appraisal appeal) Wilkins, Lauren Wood 22176896 2013 237330 237330 (159.17) Situs error (Illegal tax) Woods, Joseph Hall 21802415 2013 157600 157600 (142.98) Situs error (Illegal tax) Total (47428.89) August 14, 2014 thru September 17, 2014 Military eave and Earning Statement: Is a co of a serviceman's payroll stub 5 Y g copy p Y 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