hb 1779 vehicle property tax collection a priority goal of the ncacc w.a. (pete) rodda, cae, res...

HB 1779 Vehicle Property Tax Collection

A Priority Goal of the NCACC

W.A. (Pete) Rodda, CAE, RESDavid Baker, MPA, PPS

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

HB 1779 Vehicle Property Tax Collection 2

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

3

Current System: “Billing In Arrears”

HB 1779 Vehicle Property Tax Collection


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

Vehicle Renewal/Reissuance Process

5HB 1779 Vehicle Property Tax Collection

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.


New System: “Simultaneous Billing”

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).


New System: “Simultaneous Billing”

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.


Major Differences Between “Current” Verses “New” System


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


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

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


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

12

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!


Local Impact

RMV Process Chart_1.xlsx

MV Process Chart


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


WHO DATE INTRODUCTORYTESTING


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

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.

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.

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


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


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


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”)

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


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)


No value No Situs RV Plus Code Condition Code Exemption Exception Antique MV Trailer Notes

Work Queues


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

VTS Situs Validation Process


Questions?

hb 1779 vehicle property tax collection a priority goal of the ncacc w.a. (pete) rodda, cae, res...

Documents

new system property

arrears hb

tax assessors

tax levy

current system

local tax revenue

simultaneous billing

mainframe system