HB 1779 Vehicle Property Tax Collection A Priority Goal of the NCACC

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HB 1779 Vehicle Property Tax CollectionA
Priority Goal of the NCACC

• W.A. (Pete) Rodda, CAE, RES
• David Baker, MPA, PPS
• Dave Duty, NCDOR
• Travis Isaacs, NCDOR
• Greg French, Guilford County

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Welcome

• HB 1779 Project
• Goals for todays session.
• What today is not.
• Open Environment
• Schedule for today

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Schedule

• Session 1 900 am to 1015 am 1779 Project
  Update
• Break 1015 am to 1030 am
• Session 2 1030 am to 1145 am VTS Live
  Demonstration
• Lunch Break 1145 am to 100 pm
• Session 3 100 pm to 215 pm Building a
  Situs Table
• Break 215 pm to 230 pm
• Session 4 230 pm to 330 pm Treatment of
  Skipped Months/Unregistered MVs

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Project Goals

• To improve the citizens experience
• Reduce the number of government interactions.
• Eliminate the need for delinquent collections.
• Reduce/share costs
• Duplicate mailings (postage, materials, handling,
  and so on)
• Increase Efficiency of an Existing Tax
• Improved collections and revenues.
• Improved compliance.

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New System Simultaneous Billing

• In the new system, property taxes willbe
  included with the invitation to renew
• Assessor determines value, SITUS, and taxable
  status of the vehicle in advance not in
  arrears.
• File is delivered to DMV to prepare the
  invitations to renew the registration.
• Taxes must be paid in order to obtain the
  registration no partial payments will be
  allowed.

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Configuration

• STARS is a mainframe system, scheduled for
  replacement.
• RFI has been issued.
• Decision was made to take a modular approach.
• Vehicle Tax System will be a separate system
  housed at the NC DOR data center.
• DMV maintains responsibility for titles and
  registrations.
• DOR responsible for property tax administration.

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Implementation

• Counties work their first files in the new system
  in March/April, 2013
• July, 2013 renewals
• Combined notices to be in mailboxes no later than
  June, 1, 2013
• Old system and new system will overlap for four
  months
• Change in due date
• Counties will now work two files for 5 months
  rather than 6!

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Registered Motor Vehicle Process Chart July 2013 Implementation Registered Motor Vehicle Process Chart July 2013 Implementation Registered Motor Vehicle Process Chart July 2013 Implementation Registered Motor Vehicle Process Chart July 2013 Implementation Registered Motor Vehicle Process Chart July 2013 Implementation Registered Motor Vehicle Process Chart July 2013 Implementation Registered Motor Vehicle Process Chart July 2013 Implementation Registered Motor Vehicle Process Chart July 2013 Implementation Registered Motor Vehicle Process Chart July 2013 Implementation
  File Delivery/ File Delivery/          
Registration Processing Processing Notice Taxes Past Enforcement
Renewed Old System New System Prepared Due Due Begins Block Notice Block

Nov-12 Jan-13   Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13
Dec-12 Feb-13   Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13
Jan-13 Mar-13   Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13
Feb-13 Apr-13   May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13
Mar-13 May-13   Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13
Apr-13 Jun-13   Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13
May-13 Jul-13   Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14
Jun-13 Aug-13   Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14
Jul-13   Apr-13 May-13 8/15/2013 8/16/2013 N/A N/A N/A
Aug-13   May-13 Jun-13 9/15/2013 9/16/2013 N/A N/A N/A
Sep-13   Jun-13 Jul-13 10/15/2013 10/16/2013 N/A N/A N/A
Oct-13   Jul-13 Aug-13 11/15/2013 11/16/2013 N/A N/A N/A
Nov-13   Aug-13 Sep-13 12/15/2013 12/16/2013 N/A N/A N/A
Dec-13   Sep-13 Oct-13 1/15/2014 1/16/2014 N/A N/A N/A
Jan-14   Oct-13 Nov-13 2/15/2014 2/16/2014 N/A N/A N/A
Feb-14   Nov-13 Dec-13 3/15/2014 3/16/2014 N/A N/A N/A
Mar-14   Dec-13 Jan-14 4/15/2014 4/16/2014 N/A N/A N/A
Apr-14   Jan-14 Feb-14 5/15/2014 5/16/2014 N/A N/A N/A
May-14   Feb-14 Mar-14 6/15/2014 6/16/2014 N/A N/A N/A
Jun-14   Mar-14 Apr-14 7/15/2014 7/16/2014 N/A N/A N/A
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MV Process Chart

• RMV Process Chart_1.xlsx

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Statewide Training Opportunities

• Tax Association Meetings
• Road Show Demos planned for October, 2012
• NCAAO Fall Conference, Thursday November 15, 2012
• Statewide Training Sessions
• February 8 through March 8, 2013
• Potential sites include Wilmington, Greenville,
  Fayetteville, Raleigh, Winston-Salem, Charlotte
  and Asheville.
• Webcasts

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Conversion and Testing
WHO DATE INTRODUCTORY TESTING

SESSION
SESSION
3 Pilot Counties 9/17/2012
10/17-18/2012 10/22-26/2012 25
Counties 10/31/2012
11/26/2012 11/26-30/2012 100
Counties 12/21/2012
1/3-4/2013 1/7-25/2013
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System Demo
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Situs Session
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Addresses in STARS

• County Code
• County in which the vehicle was last registered
• Controls which vehicles will be sent to a given
  county
• Provided by vehicle owner
• Residence Address (primary owner)
• Where the vehicle owner resides
• Provided by vehicle owner
• Lessee Address (primary lessee)
• Not the address of the owner
• Provided by leasing company at the time of
  transaction or lessee

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Addresses in STARS

• Mailing Address
• Mailing address of the primary owner if different
  from the residence address
• Provided by vehicle owner
• One-Time Mailing Address
• One time temporary mailing address
• Provided by vehicle owner
• Vehicle Location Address
• SITUS address of the vehicle if different from
  the residence address
• Controlled by the counties

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Addresses in STARS

• County Code and Situs Address will be controlled
  through the VTS
• Counties will send vehicles to each other by
  changing the county code in VTS
• Process for mass change under development
• County code changes will be sent to STARS
• Situs address changes will be made in the VTS and
  sent to STARS

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Business Rules

• An LPA can effectively change a situs at the
  request of the vehicle owner
• Change in Residence Address
• If a Vehicle Location Address (situs) is present,
  a change in Residence Address will NOT trigger a
  change in situs
• LPA must send the owner to the county
• If no Vehicle Location Address (situs) is
  present, a change in the Residence Address
  triggers a recalculation of the taxes in the VTS

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VTS Situs Validation Process
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SITUS Repository in VTS

• County Address ID
• Three Components
• Numeric, limited to 10 characters
• Effective Date (MMDDYYYY)
• End Date (MMDDYYYY)
• Street Number (maximum 6 characters)
• Prefix (N, NW, W, SW, S, SE, E, NE)
• Street Name (maximum 30 characters)
• Street Type (mostly 2 to 4 characters)

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SITUS Repository in VTS

• Suffix (N, NW, W, SW, S, SE, E, NE)
• City
• State
• Zip (5 characters)
• Parcel Number (PIN for address points)
• Tax District Type (County, City, Fire, Special)
• Parcel Number

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Address Ranges in VTS

• Street Range From
• Street Range To
• Parity (Even, Odd, Mixed, Unknown)
• Break on tax districts

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Tax Jurisdictions

• The VTS does not support traditional townships
• Typically taxes are not levied for townships
• Hierarchy
• County, City, Police, Fire, Special

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Address Sources

• DMV Data
• Tax Listings
• GIS
• Street Centerlines
• Planning Department
• 911 files
• 3rd party addressing
• QAS, Peachtree Data, etc.

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Address Dump
Tax Tax Tax
Street Street Street District District District
NBR Name Type City County City Fire Special
300 Pineridge Dr Winston Salem FC WS WS
301 Pineridge Dr Winston Salem FC WS WS
310 Pineridge Dr Winston Salem FC WS WS
311 Pineridge Dr Winston Salem FC WS WS
320 Pineridge Dr Winston Salem FC WS WS
321 Pineridge Dr Winston Salem FC WS WS
330 Pineridge Dr Winston Salem FC WS WS
331 Pineridge Dr Winston Salem FC WS WS
340 Pineridge Dr Winston Salem FC WS WS
341 Pineridge Dr Winston Salem FC WS WS
350 Pineridge Dr Winston Salem FC WS WS
351 Pineridge Dr Winston Salem FC WS WS
360 Pineridge Dr Winston Salem FC WS WS
361 Pineridge Dr Winston Salem FC WS WS
370 Pineridge Dr Winston Salem FC WS WS
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Tax Tax Tax
Address Street Effective End District District District
ID From To Parity Street Name Type City Date Date County City Fire Special

1000000001 300 360 E Pineridge Dr Winston Salem 01012012 01012999 FC WS WS
1000000010 301 361 O Pineridge Dr Winston Salem 01012012 01012999 FC WS WS
1000000020 580 638 E Peace Haven Rd Winston Salem 01012012 12312013 FC SF
1000000021 580 638 E Peace Haven Rd Winston Salem 01012014 01012999 FC WS WS
1000000030 581 639 O Peace Haven Rd Winston Salem 01012012 01012999 FC WS WS
1000000040 640 708 E Peace Haven Rd Winston Salem 01012012 01012999 FC WS WS
1000000050 641 709 O Peace Haven Rd Winston Salem 01012012 01012999 FC WS WS
1000000060 710 718 E Peace Haven Rd Winston Salem 01012012 12312013 FC SF
1000000061 710 718 E Peace Haven Rd Winston Salem 01012014 01012999 FC WS WS
1000000070 709 719 O Peace Haven Rd Winston Salem 01012012 01012999 FC WS WS
1000000080 720 1558 E Peace Haven Rd Clemmons 01012012 01012999 FC CL CL
1000000090 721 1559 O Peace Haven Rd Clemmons 01012012 01012999 FC CL CL
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Vehicles not Handled by VTS

• (1)    Motor vehicles exempt from registration
  pursuant to G.S. 20-51.
• (2)  Manufactured homes, mobile classrooms, and
  mobile offices.
• (3)  Semitrailers or trailers registered on a
  multiyear basis.
• (4)  Motor vehicles owned or leased by a public
  service company and appraised under G.S. 105-335.
• (5)  Repealed by Session Laws 2000, c. 140, s.
  75(a), effective July 1, 2000.

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Vehicles not Handled by VTS

• (6)  Motor vehicles registered under the
  International Registration Plan.
• (7)  Motor vehicles issued permanent registration
  plates under G.S. 20-84.
• (8)  Self-propelled property-carrying vehicles
  issued three-month registration plates at the
  farmer rate under G.S. 20-88.

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Exemptions and Exclusions

• County codes the vehicle as such within the VTS
  and the notice only has the registration fee on
  it.
• Application for exemption must be filed within 30
  days of the due date.
• DMV or LPA can not exempt a vehicle.

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Renewals

• Will be handle the same way as today.
• Assessor will situs, appraise, assess the
  vehicles in the VTS.
• The VTS will send the amount of taxes due to
  STARS.
• DMV will mail and collect.
• Due date is the 15th of the month.
• Appeal Value appeal must be made with 30 days
  of due date.

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New Registration

• Real time
• Sales price used as the value if it is a dealer
  sale.
• This will help with trailers, RV and special
  vehicles.

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Issues Limit Registration PlateLRP

• Buyer can choose to get a limited registration.
• Plate will be marked with a T rather than a
  year. Good for the month plus 2 more months.
• March purchase - good till May 31.
• Buyer will be sent a combined notice 15 days
  after registration and title work is submitted.
• When tax is paid, buyer will get the full year
  registration. (A year sticker to place over T)

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Leg. Changes

• SB 826
• Minimal tax bills 105-321(f)
• Appeals/Exemption 105-330.2 and 105-330.3(b)
• Interest 105-330.4 ¾ interest starts the
  second month after the due date.
• Collection remedies still in place for any taxes
  bill under the current/old system.

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Unregisterd vehicles105-330.3(a1)

• Stops double taxation.
• Allows vehicles to be billed for missing months.
• Bill as unregistered in county system.
• Spreadheet E\Unregistered vehicle bills.xlsx

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Appeals and Refunds

• Appeals must be made with 30 days of due date.
• If before payment, STARS system will recalculate
  the amount of taxes due.
• If after payment VTS system will calculate the
  amount of refund due.

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Questions?