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HB 1779 Vehicle Property Tax Collection
A Priority Goal of the NCACC
W.A. (Pete) Rodda, CAE, RESDavid Baker, MPA, PPS
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To improve the citizen’s 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.
Project Goals
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Major Issues:Average of 66% of RMV bills are paid on timeAverage Collection Rates at Fiscal Year End by County Population:
RMV AnnualStatewide Average 87.22% 97.91%100,000+ 88.09% 98.37%50,000 – 99,999 85.37% 96.96%25,000 – 49,999 84.01% 96.61%24,999 and Below 84.08% 95.23%
*Source: LGC Memorandum #2012-14, 4/17/2012
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Current System: “Billing In Arrears”
HB 1779 Vehicle Property Tax Collection
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HB 1779 Vehicle Property Tax Collection 4
HB1779 PROGRAM OFFICE
HB 1779 Project Sponsor
Steering Committee DMV, DOR, DOT IT, NCACCSteering Committee DMV, DOR, DOT IT, NCACC
NC DOT Architecture / Security
NC ITS Architecture / Security
Core TeamsSTARS Development
DOR ITDMV
Financial Accounting(Billing & Payment)
HB 1779 Program Manager
HB 1779 Program Manager
Owns the technical solution
NC DOT PMO
NC ITS EPMO
Manages program
Owns the HB1779 Business Solution
Limited number of decision makers
DOR
HB 1779 Business Architect
HB 1779 Business Architect HB 1779
Solution Architect
HB 1779 Solution Architect
Stakeholders Citizens, counties, auto dealers,
tax assessors, LPAs
Governance – Cross Functional Development
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Vehicle Renewal/Reissuance Process
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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.
6HB 1779 Vehicle Property Tax Collection
New System: “Simultaneous Billing”
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In the new system property taxes will be included with the “invitation to renew.”
The RMV owner has legitimate options NOT to renew the registration.
Taxes are collected by DMV/License Plate Agencies (LPAs) (no partial payments).
7HB 1779 Vehicle Property Tax Collection
New System: “Simultaneous Billing”
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With the new system:
• No more billing in arrears – billing is done when the invitation to renew is sent. Vehicle cannot be registered unless the taxes are paid.
• The local collector is not charged with collection.
• A tax levy (in the traditional sense) is not created.
8HB 1779 Vehicle Property Tax Collection
Major Differences Between “Current” Verses “New” System
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9HB 1779 Vehicle Property Tax Collection
With the new system:
• All assessments (valuation, SITUS, taxability) will be performed in statewide Vehicle Tax System (VTS) administered by the Department of Revenue.
• Refunds will still be handled by the local governments using the VTS.
• DOT Fiscal will distribute local tax revenue to the counties, who will in turn distribute to other taxing units.
Major Differences Between “Current” Verses “New” System
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10HB 1779 Vehicle Property Tax Collection
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.
Configuration
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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!
Implementation
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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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16 billing cycles in FY 2014:
• Four under current system, twelve under new system.
• Additional billing cycles due to moving away from billing in arrears to concurrent billing/registration renewal.
• Vehicle tax years remain the same; only the due dates are changing.
• The additional billing cycles are a one-time occurrence.
• THIS IS NOT A WINDFALL!
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Local Impact
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RMV Process Chart_1.xlsx
MV Process Chart
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Tax Association Meetings“Road Show” Demos planned for October 15 – 19,
2012NCAAO Fall Conference, Thursday November 15, 2012Statewide Training Sessions
February 8 through March 8, 2013 Potential sites include Wilmington, Greenville, Fayetteville,
Raleigh, Winston-Salem, Charlotte and Asheville. Webcasts
Statewide Training Opportunities
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WHO DATE INTRODUCTORYTESTING
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Conversion and Testing
SESSION SESSION3 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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Vehicles not Handled by VTS
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(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
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(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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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.
Exemptions and Exclusions
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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.
Renewals
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Real time Sales price used as the value if it is
a dealer sale. This will help with trailers, RV and
special vehicles.
New Registration
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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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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.
Leg. Changes
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Stops double taxation. Allows vehicles to be billed for
missing months. Bill as unregistered in county
system. Spreadheet:
E:\Unregistered vehicle bills.xlsx
Unregisterd vehicles105-330.3(a1)
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No value No Situs RV Plus Code Condition Code Exemption Exception Antique MV Trailer Notes
Work Queues
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Fields for alias recordField name
Example
Field name
Example Field name
Example
Record type
A Alias street type ST
Alias stateNC
County Address Id
5874Alias street number
Alias zip code 27316
Alias street name LIBERTY
Alias street range from
Alias zip plus
Alias street prefix
Alias street range to
Alias type
OAlias street suffix
Alias cityRAMSEUR
Alias type:A for AbbreviationC for Name ChangeO for Other NameP for Preferred Name
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VTS Situs Validation Process
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Questions?