HomeMy WebLinkAboutAgenda - 09-06-2016 - 6-b - Motor Vehicle Property Tax Releases Refunds 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 6, 2016
Action Agenda
Item No. 6-b
SUBJECT: Motor Vehicle Property Tax Releases/Refunds
DEPARTMENT: Tax Administration
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 value for
ten (10) taxpayers with a total of twenty (20) 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 request will result in a net reduction of
$4,806.62 to Orange County, the towns, and school and fire districts. Financial impact year to
date for FY 2016-2017 is $4,806.62.
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SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated
with this item.
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.
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NORTH CAROLINA RES-2016-052
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
,2016.
Clerk to the Board of Commissioners
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BOCC REPORT - REGISTERED MOTOR VEHICLES
SEPTEMBER 6, 2016
ABSTRACT BILLING ORIGINAL ADJUSTED FINANCIAL
NAME NUMBER YEAR VALUE VALUE IMPACT REASON FOR ADJUSTMENT
Adderholdt, Harold 32877371 2016 11,010 11,010 Situs error(illegal tax)
Ciriacks, Kevin 32732784 2016 9,460 0 (188.53) County changed to Chatham (illegal tax)
Hall, Leon 27301014 2015 32,400 32,400 7777- Situs error(illegal tax)
Hilton, Robert Lyle 32290923 2015 14,740 14,740 174. 1 Military exempt(illegal tax)
Hilton, Robert Lyle 32291020 2015 16,500 16,500 5. Military exempt(illegal tax)
Martin, Dwina Lynn 27509952 2014 18,020 18,020 (T 6T4-47 Situs error(illegal tax)
Piedmont Electric Membership Corp. 31911299 2015 29,967 29,967 TT9777 Exempt property(illegal tax)
Piedmont Electric Membership Corp. 31911349 2015 29,967 29,967 .1 Exempt property(illegal tax)
Piedmont Electric Membership Corp. 31911695 2015 29,967 29,967 Exempt property(illegal tax)
Piedmont Electric Membership Corp. 31911807 2015 29,967 29,967 .1 Exempt property(illegal tax)
Piedmont Electric Membership Corp. 31911845 2015 29,967 29,967 77TT67 Exempt property(illegal tax)
Piedmont Electric Membership Corp. 31912605 2015 29,967 29,967 .1 Exempt property(illegal tax)
Piedmont Electric Membership Corp. 32233746 2015 29,822 29,822 .77 Exempt property(illegal tax)
Piedmont Electric Membership Corp. 32233727 2015 33,942 33,942 Exempt property(illegal tax)
Piedmont Electric Membership Corp. 32233694 2015 29,622 29,622 Exempt property(illegal tax)
Piedmont Electric Membership Corp. 32506508 2016 43,633 43,633 (419.58) Exempt property(illegal tax)
Shue, Robert 33152088 2016 11,786 500 77T Antique plate (appraisal appeal)
Spell, Oscar Glenn III 32307915 20151 19,200 500 T7-5 4-17 Antique plate(appraisal appeal)
Walters, Charles Milton 18406407 20151 47,2431 33,828 Value adjustment(appraisal appeal)
Williams, Myra Miller 32487839 20151 16,8501 16,8501 TT79.747, Situs error(illegal tax)
TOTAL
Adjustment Descriptions
Clerical error G.S. 105-381(a)(1)(a):e.g. when there is an actual error in mathematical calculation.
Illegal tax G.S. 105-381(a)(1)(b):e.g. when the vehicle should have been billed in another county, an incorrect name was used, or an incorrect rate code was used.
Tax levied for an illegal purpose G.S. 105-381(a)(1)(c):e.g. charging a tax that was later deemed to be impermissible under State law.
Appraisal appeal G.S. 105-330.2(b):e.g. reduction in value due to excessive mileage or vehicle damage.
June 3, 2016 thru August 17, 2016
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