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Tag & Tax Together Update

Tag & Tax Together Update. NCDOR Advanced Personal Property Seminar Greensboro, NC 2014 By Travis Isaacs Property Valuation Specialist I. Update Topics. Default Situs Situs Repository Download USPS Address Updating Gap Billing Exclusion Report/Multi Year Permanent Plates Upload Report

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Tag & Tax Together Update

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  1. Tag & Tax Together Update NCDOR Advanced Personal Property Seminar Greensboro, NC 2014 By Travis Isaacs Property Valuation Specialist I

  2. Update Topics • Default Situs • Situs Repository Download • USPS Address Updating • Gap Billing • Exclusion Report/Multi Year Permanent Plates • Upload Report • Unregistered Vehicle Report • Eligibility Requirements for LRP changes • International Registration Plates/IRP’s • Temporary Plates • NCVTS Collections • VTS User Group • VTS Training

  3. Default Situs Address • Why do we have a default address? The default address was initiated because a citizen needed to be able to purchase a registration. They can pay the registration and property tax to avoid any penalties or tickets. Then the situs address can be corrected by the county if one is needed and a refund issued.

  4. Default Situs Cont’ • Is your Default Situs Address effective? • If not, what can you do to correct the issues? • Run Default Situs Report • Update Situs Repository • Update with Variation of the Address or Alias • Update STARS in Vehicle Location Address

  5. Default Situs Cont’ • Should your county use the highest tax district combination? • If your Default combination is heavily populated. • Yes, you want to try to hit as many vehicles as you can. • If Default address captures only a small percentage of the vehicles in your county, it can cause issues: • Lots of refunds • Creates budgeting issues for the district that is receiving inflated revenue. How do they handle these funds? • Taxpayer frustration/Customer Service

  6. Download Situs Repository • Counties now have the capability of downloading their Situs Repository. • The file updates every week. Changes you make during the week will not reflect in the file until the following Monday. • If you make changes and upload situs file back into the VTS the changes take place overnight.

  7. Download Con’t

  8. Situs Download Cont’

  9. Situs Download Cont’

  10. Download Cont’ Old Address-16000 to 16413 NC 73 Hwy Hwy Mt Pleasant , NC • STANL~S~1414~NC 73 HWY~~~HWY~~16000~16413~U~~~MTPLEASANT~NC~~~02012013~12319999~~~~~~~~~~~~~COUNTY~01~FIRE~23 New Address-16000 to 164113 NC 73 Hwy NC 28714 • STANL~S~1414~NC73~~~HWY~~16000~16413~U~~~~NC~28714~~02012013~12319999~~~~~~~~~~~~~COUNTY~01~FIRE~23

  11. Updating Addresses with USPS • New address provided by mail carrier is updated in a New Construction Edit Address Book. The county code defaults by zip if carrier does not know the county. • New addresses and corrections that are sent by the county are individually added or changed. The county code is manually updated and will not default. They do this by block and range.

  12. Update USPS Cont’ • Counties can request a current copy of the address data base USPS has for your county. • Counties should encourage their 911/GIS to send email of all new addresses on a weekly or monthly basis. • You can do this by contacting Cathy Satterfield, Manager, Address Management Systems at USPS. cathy.d.satterfield@usps.gov • Address verification companies purchase the postal service address data base.

  13. Gap Billing Report G.S. 105-330.3(2) For any months for which the vehicle was not taxed between the date the registration expired and the start of the current registered vehicle tax year, the vehicle is taxed as an unregistered vehicle as follows: a. The value of the motor vehicle is determined as of January 1 of the year in which registration of the motor vehicle expires.

  14. Gap Billing Cont’ G.S. 105-330(2) b. In computing the taxes, the assessor must use the tax rates and any additional motor vehicle taxes of the various taxing units in effect on the date the taxes are computed. c. The tax on the motor vehicle is a product of a fraction and the number of months for which the vehicle was not taxed between the date the registration expires and the start of the current registered vehicle tax year. The numerator of the fraction is the product of the appraised value of the motor vehicle and the tax rate of the various taxing units. The denominator of the fraction is 12.

  15. Gap Billing Cont’ G.S.105-330.3 d. The taxes are due on the first day of the second month following the month the notice was prepared. e. Interest accrues on unpaid taxes for these unregistered classified motor vehicles at the rate of five percent (5%) for the remainder of the month following the month until the taxes are due. Interest accrues at a rate of three-fourths percent (3/4%) for each of the following month until the taxes are paid, unless the notice is prepared after the date the taxes are due. In that circumstance, the interest accrues beginning the second month following the date of the notice until the taxes are paid.

  16. Gap Billing Calculation 6 missing months $12,000 Value Effective Tax Rate =.0050 $12,000/12=$1000 6x$1000=$6000 $6000x.0050=$30.00/Gap Bill

  17. Multi Year Trailer & 3 Month Farm Plates/Exclusion Report • How are these taxed? • As regular personal property. • Where do I find them? • The NCVTS Exclusion Report. • How do I run the report? • Fiscal Year • Renewal Month, Quarter or Year • Abstract Year for • Plate Type

  18. Upload Report • Upload Report is? • Monthly Tax Scroll What can I do with this report? • Confirm Values • Validate Situs Addresses • Check for Body Type Attachments by looking at Plate Categories (PTP/PVT) Weighted Plates. • Check the Abstract Status RFB (Ready For Billing) or Received

  19. Unregistered Vehicle Report • This report is for vehicles that have not been renewed for over one (1) year and should be taxed as regular personal property under G.S.105-274. When can we start using the report? • The report is available, but until we have the report cleaned up we don’t recommend you use the report. • We will have DMV remove the vehicles that have transferred ownership or moved out of state so counties can bill as unregistered vehicles.

  20. Eligibility Change for LRP/IPS Services LRP-Limited Registration Plate IPS- Issue Plate Service 20-79.1A. Limited registration plates. • (a) Eligibility. – A limited registration plate is issuable to any of the following: • (2) A person who applies for a plate for a vehicle that was previously registered with the Division but whose registration has not been current for at least a year because the plate for the vehicle was surrendered or the vehicle's registration expired over a year ago.

  21. IRP’s How are IRP’s taxed? • As Business Personal Property. How can I tell if a vehicle is an IRP? • By Plate Category/Use Code: • IRL/APPT & PAL/APPT=Trailer/TRL • IRP/APPV & PAT/APPV=Truck or Tractor=TK/TR • IRP/APPB=BUS How can you find these vehicles? • DMV will provide three (3) Electronic Files a year for auditing purposes. Tentative months are January, June & October.

  22. Temporary License Plates • Why are Temporary tags issued? • Typically for an insurance lapse. • Why are they only issued for three months or less and charged a full year in tax? • The citizen is charged for a 12 month registration thus a 12 month property tax is charged.

  23. Temp Plates Cont’ Does this cause issues when doing a proration for a change of tax year under G.S. 105-330.6(a1)? • Yes, because you are directed to release the tax on the current year bill before payment. Since the citizen must pay at the time of registration, there may not be a bill to do a pre-release before payment. It is our recommendation to do a proration on the plate or plates preceding the current year issued plate under 105-381(b) as an illegal tax to avoid prorating the current year bill until we make a technical law change this fall.

  24. Temp Plates/Cont’ • How can we correct this proration issue? • When a temporary plate is issued, the property tax will not be charged. The property tax will be charged when the metal plate is issued. • If there is a gap in the tax year, this information will fall onto the Gap Billing report. • This does not correct the overlapping tax year issue, but will prevent the citizen from paying when a temporary plate is issued.

  25. NCVTS Collections • Under the old RMV system tax collection was approximately 86%. RMV revenue was around $47.5 million per month. • Collections for Tag and Tax are approximately 99%. This has increased revenue to $56.4 million per month. • This is a 13% increase and rising.

  26. NCVTS User Group • The User Group was formed to make decisions about enhancements and overall system needs. The group is comprised of Tax Office, Finance and IT subject matter experts who are from rural and urban counties. • We will be meeting September 25th to go over the enhancement request log to prioritize them. Once this takes place we will begin to implement these enhancements as well as correct ongoing issues.

  27. VTS Training • DOR will hold our first post VTS implementation training class in December of 2014 in Raleigh. • The class will be 2 ½ days and class size will be limited to fifteen to twenty students. • If your county has a facility that we can use for this training please let us know.

  28. Tag & Tax Together Update Questions?

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