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HomeMy WebLinkAboutAgenda - 04-05-1993 - VII-C 1 ORANGE COUNTY BOARD OF COMMISSIONERS Action Agenda Item No VIr-C-. ACTION AGENDA ITEM ABSTRACT Meeting Date: April 5, 1993 SUBJECT: Implementation of Motor Vehicle Taxation Changes DEPARTMENT Assessor PUBLIC HEARING YES NO X ATTACHMENT(S) INFORMATION CONTACT Information Sheet Kermit Lloyd, ext 2100 TELEPHONE NUMBER Hillsborough 732-8181 Chapel Hill 968-4501 Mebane 227-2031 Durham 688-7331 PURPOSE: To present a brief report on changes to motor vehicle taxation in North Carolina. BACKGROUND: At the January 4 meeting of the Board of Commissioners, staff presented a report about changes in the property tax listing process. As of January 1, 1993, the process for listing, billing, and collection of property taxes on registered motor vehicles is tied to registration with the North Carolina Department of Motor Vehicles. Vehicle owners will receive a bill for property taxes approximately three months after their registrations expire for each vehicle, instead of being billed in July for taxes on vehicles as well as real property. As the new system represents a significant change for taxpayers, County staff have been planning to help educate the public about the process. Staff in the Tax Collector and Assessor' s offices have received training on administering the changes, and have taken opportunities to discuss the changes with citizens served in the Tax offices. The first taxpayers to be affected will be those with registrations that expired in March: they can expect to receive tax bills for their vehicles in early to mid-June, with taxes due on July 1 and delinquent on August 1, if unpaid. Staff will continue to work with citizens and the media to increase awareness about changes in motor vehicle taxation in the months ahead. RECOMMENDATI0N: The Manager recommends that the Board receive the report for information only. INTRODUCTION if you have a March renewal,you will receive the All incorrect billings should be corrected within 30 bill in June,it will be due on July 1st,and must be days. paid by July 31st to avoid the addition of interest. A new law dealing with the taxation of motor You will receive a separate tax bill on each vehicles will go into effect January 1, 1993. The IF I DON'T PAY ON TIME registered vehicle you own. It is important to purpose of this brochure is to inform you, the remember that mortgage companies may no longer vehicle owner,of the changes that will occur due to pay motor vehicle taxes through escrow. the implementation of this new law. If taxes are not paid on time, the county tax collector will issue a block. If a vehicle receives a DUE DATES CHART block, the registration cannot be renewed again until the taxes plus interest have been paid. WHAT HAS CHANGED? Registration can only be renewed on a blocked MO.REGIS TAXES TES EXP/REN'D DUE LATE vehicle,after a paid tax receipt has been presented to DMV. Basically, the new statute has changed the way NOTE: DMV will not send you any renewal property tax will be collected on registered motor JAN MAY JUN information if a block has been p vehicles. These vehicles (cars, trucks, trailers, FEB JUN JUL placed on your motorcycles,and similar property)will no longer MAR JUL AUG _vehicle reiristration. have to be listed in January. Unregistered APR AUG SEP '(untagged) motor vehicles must still be listed MAY SEP OCT HOW DO I APPEAL? annually in January and will be billed with other JUN OCT NOV personal property. JULY NOV DEC AUG DEC JAN The valuation of your motor vehicle may be appealed in the same manner as the valuation of WHAT DO I DO? SEP FEB MAR your other property. The burden of proof will NOV MAR APR remain with you, the taxpayer. By statute, a valuation appeal must be brought within thirty DEC APR MAY When you receive your vehicle registration days from the date the notice is prepared. When renewal card from DMV, please make sure your filing an appeal,you must pay the taxes first. If the address and county are correct. If the address and -Bzi4 , �%6 -��•z -1d Ad"') value is changed, the taxes will be adjusted as county are not correct, DMV must be notified so necessary. you are taxed by the proper county and municipality. IF I AM BILLED INCORRECTLY EFFECTIVE DATES HOW WILL I BE BILL D? You may get a bill from a county or municipality in The new law becomes effective January 1st of which you do not reside at the time,of registration 1993. For vehicles which are registered under the About three months after your registration renewal. If this were to occur,youmay go to either annual system,(commercial trucks,taxis,etc.)the renewal,you will receive a bill which is payable on the county which billed you or the county which statute will first apply to vehicles registered on or the first day of the following month. For example, should have billed you in order to correct the error. after December 1, 1992. n: fi(i-P 4/V93 ORANGE COUNTY TAX SUPERVISOR'S OFFICE r 3 208 SOUTH CAMERON STREET HILLSBOROUGH, NORTH CAROLINA 27278 KERNIIT LLOYD Tax Super- 5°r MEMORANDUM TO: Board of County Commissioners FROM: Kermit Lloyd, Assessor, SUBJECT: Implementation of Motor Vehicle Taxation Changes DATE: April 1 , 1993 Responding to the loss of revenue caused by many vehicle owners failing to list their motor vehicles for property taxes, and the high administrative cost of discovering those vehicles and collecting delinquent taxes , the North Carolina General Assembly has enacted new laws governing how property taxes will be paid on registered vehicles in the future. Beginning in 1993 , vehicle owners will no longer list registered vehicles on their tax listing forms in the month of January each year. Instead the vehicle owner will receive a tax notice for the vehicle approximately 3 months after the vehicle is registered with the Department of Motor Vehicles . Each month, the Department of Motor Vehicles will send a list of registered vehicles to each county Assessor' s Office. The appraised value of the vehicle will be determined as of January 1 of the current year, and the tax bill will be calculated based on the tax rate in effect for the registration month. Once the notice is mailed, the taxes become due the 1st day of the fourth month following the registration month. If the bill is not paid within a month after the date on the notice, interest will accrue at the rate of 3/4 percent a month. If the taxes are not paid before the next registration period, the Dept . of Motor Vehicles will be notified by the Collector' s Office and renewal will be denied until delinquent taxes are paid. If a vehicle owner trades vehicles and transfers the registration plates to another vehicle, he is still liable for the taxes due on the first vehicle for that year. The new owner does not become liable until the vehicle is registered in his name. If the registration plate is Page Two 4 BOCC surrendered to the Dept. of Motor Vehicles before the next registration month, the owner may apply to the tax collector for a prorated refund. It is important to note that these new procedures apply only to registered vehicles . Any unregistered vehicles, trailers, or other equipment will still be listed during the regular listing period. To educate the public, the Orange County Assessor' s Office has included an explanation of the new law on each taxpayer' s 1993 tax listing form. In addition, the new laws and procedures were publicized in local newspapers in January of this year; and, in cooperation with the N.C. Dept. of Revenue, a press release explaining these changes and owner requirements were issued to every newspaper and radio and television station in North Carolina.