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Enforced Collection of Taxes Levied on Manufactured Homes David Baker, Property Tax Division, Department of Revenue

Enforced Collection of Taxes Levied on Manufactured Homes David Baker, Property Tax Division, Department of Revenue Kirk Boone, Property Tax Division, Department of Revenue Shea Denning, School of Government Pat Goddard, Johnston County Tax Administrator

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Enforced Collection of Taxes Levied on Manufactured Homes David Baker, Property Tax Division, Department of Revenue

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  1. Enforced Collection of Taxes Levied on Manufactured Homes David Baker, Property Tax Division, Department of Revenue Kirk Boone, Property Tax Division, Department of Revenue Shea Denning, School of Government Pat Goddard, Johnston County Tax Administrator Jo Roberson, Orange County Revenue Director Frances Wilson, Chatham County Tax Collector Dennis Woodward, Deputy Tax Collector, Johnston County © 2007

  2. Real or personal property?

  3. Must be a residential structure; and Moving hitch, wheels and axles must be removed; and Must be placed on a permanent foundation; and Must be situated on land owned by the owner of the manufactured home or on land in which the owner of the home has a 20-year lease that provides for disposition of home on termination of lease 4-Part Test Determines Whether Manufactured Home is Real Property N.C. Gen. Stat. 105-273(13)

  4. Generally, the person whose name is on the certificate of title. GS 20-72(b). Sometimes, manufactured homes can transfer by deed Statutory procedure for surrendering certificate of title Repossessor becomes owner upon taking possession of manufactured home. GS 20-77. Owner for tax listing purposes can be person paying for home through conditional bill of sale, if seller retains title as security Who owns the manufactured home?

  5. GS 105-316.1 – 316.8 May not move “mobile home” without permit Exception for Manufacturers Retailers Licensed Carriers (Carrier is responsible for ensuring display of permit when required) Permit to be issued by tax collector Moving Permit Required

  6. A manufactured home as defined by GS 105-273(13), AND A structure designed, constructed, and intended for use as a dwelling house, office, place of business, or similar place of habitation Capable of being transported from place to place on wheels attached to its frame BUT NOT trailers and vehicles required to be registered annually What is a mobile home?

  7. Permit Requirements • To obtain permit, applicant must: • Pay all taxes due to be paid (or coming due 9/1) by the owner to the city and county; or • Show proof to tax collector that no taxes are due; or • Demonstrate to the tax collector that removing the home will not jeopardize the collection of taxes • Who is the owner? January 1 owner

  8. Applicant must provide all of the following: Name/address of owner Current address or location of home Address or location of place to which home is to be moved Name/address of carrier No charge for permit Tax collector must maintain record of all permits issued Permit Requirements

  9. Holder of lien who intends to take possession of manufactured home may obtain permit by Informing tax collector of place to which home is to be moved Paying taxes due against manufactured home within 7 days of the issuance of the permit Nonresident repossessor must pay at time permit is issued Once taxes on mobile home paid, no longer subject to levy for other taxes owed by owner Special Rules for Repossessors

  10. Class 3 misdemeanor for failure to obtain permit Law enforcement officer must detain person and mobile home until permit requirements are met Penalties: GS 105-316.6

  11. Greentree repossessed Andy Alston’s manufactured home on August 9, 2006. The 2004, 2005 and 2006 taxes levied on the home (totaling $1000) have not been paid. Andy also owes delinquent motor vehicle taxes for 2005 and 2006 (totaling $200). The 2007 taxes on the home (listed in Greentree’s name for 2007) are $400. Greentree sold the home on-site to a purchaser, Betty Brown, on January 30, 2007. Betty Brown applied for a moving permit on February 4, 2007. What amount must Betty pay to obtain the permit? Moving Permit Madness

  12. All on file (full list) Partial (titled during a specific time period) “Manufactured Home List for Smart County” Manufactured Home List

  13. MVR-46F MVR-46G Transfer title http://www.ncdot.org/dmv/forms/ How homes get taken off the list.

  14. Data Security Coordinator DMV Traffic Records Section 3105 Mail Service Center Raleigh, NC 27699-3105 Request must be on agency letterhead Can be faxed to 919.715.9099 Specify full or partial list Give dates if you want a partial list Where to send the request

  15. Calculated by CPU time + postage + media Paper, CD, or Data Cartridge 7,000 records $11.72 All of Johnston County + a partial list $19 Will send an invoice with the list No invoice if under $5 5-10 day turnaround time How much does it cost?

  16. Sandra Kavouklis 919.861.3062 Contact with questions

  17. May be used as a listing tool To verify home is taxed properly (Years Listed, Size, make, model, serial #, Situs) The property is being moved to another location (Jurisdiction may change for the following year) Mobile Home Permits

  18. A collection tool (All taxes; this may be your last opportunity to collect) Tells you who your movers are; which ones are following statutes Provides detailed information from the MH you may not have in your records Mobile Home Permits

  19. Assists outside entities in identifying whether mobile home permit is obtained A DMV permit is issued for a specific period of time and route. A blanket DMV permit may cover moves within a certain mile range County moving permit issued for a specific mobile home for one move Mobile Home Permits

  20. 421 Permits issued in 2000 398 Permits issued in 2002 225 Permits issued in 2004 200 Permits issued in 2006 Mobile Home Tax Permits

  21. Customer needs a permit, what next? Find the account # and listing name Is home listed for the correct number of years? (Discover five years plus current year) Is the listing for the correct make, model, and type (single or double wide)? Policy & Procedures

  22. Check for the amount of taxes owed by the taxpayer, any prior years owed by previous owners Permits are issued at the county level, check for city taxes Collect all taxes owed Receive the information for typing the permit Note: pay all taxes due. NCGS 105-316.2(a) Policy & Procedures

  23. Type the permit and issue to the person requesting it. Permit is not limited to being issued to the taxpayer Law Enforcement must to obtain a permit Permit will be displayed on the Mobile Home Policy & Procedures

  24. What if you find out a mobile home is being moved without a permit? Send a Sheriff’s Deputy Send a Deputy Tax Collector Issue a Warrant Throw up the White Flag and good riddance Policy & Procedures

  25. Do I need a permit to move from one corner of my lot to the other? Do I need to use a permit if I’m moving it myself? May I use my Tractor? Is there an age restriction of a mobile home to be moved into your jurisdiction? Why are taxes and permit in the name of the January owner?

  26. SO WHAT IF THEY DON’T PAY? • Get ready for paperwork, paperwork, and more paperwork!

  27. Garnish wages Attach bank accounts or monies due Debt Setoff Levy What can you do?

  28. Accurint People Find Listing Information Previous Processes LexisNexis Garnishment of Wages

  29. Locate a social security number and process through ESC to determine current employer. Issue Garnishment REMEMBER if you are serving multi-garnishments or attachments to the same location you can only charge $15 once so you have to spread it out! Garnishment

  30. Serve bank attachment in person or by certified mail Serve the bank and the taxpayer Use same procedures to attach other monies due Attachment of bank accounts and other monies due to the taxpayer

  31. Mr. Smith has failed to pay taxes on his manufactured home. Mr. Smith has been hired by Mrs. Jones to paint her house. Serve Mrs. Jones with an attachment advising the sum to be withheld and sent to your office. Also serve Mr. Smith by personal service or certified mail. Garnishing wages of the self-employed

  32. Research through DMV Certificate of title with DMV is the official ownership record unless the title has been surrendered and the home placed on a permanent foundation. “But, I don’t own this home!”

  33. Have the taxpayer help you. Provide the necessary documentation to show that this is actually a rental situation. Talk with the park owner. Fix your records! Personal Involvement

  34. This can be a very effective method of collection. Determine how many delinquencies do you have within the park. Plan your trip and take enough staff to complete the visits in a day if possible. Take the delinquent bills and knock on doors. Field Visits

  35. Leave the statements in an envelope with a business card and a note of expectation for call within XXX days concerning liability. Or Tape a notice on the door stating that failure to pay will result in levy No one at home?

  36. These folks can be helpful but do not act as their private police force Park Owners or Managers

  37. Letters to the individuals are very successful. More successful in most cases than the actual submission Can submit any debts owed Get your Board’s direction to proceed Website for info: www.ncacc.org/services/debtsetoff/about.html Debt Setoff Program

  38. Your board of commissioners must issue order to collect each year at the time the annual tax receipts are delivered to the collector. Ignoring this legal requirement may invite unnecessary legal challenges to the use of certain enforced collection remedies Get an official copy from the Clerk to the Board. Levying on Manufactured Home:Order of Collection

  39. Verify ownership through DMV. If the tax record reflects a name other than the owner, refer to GS 105-306 and correct the record. Re-bill the correct owner and allow 30 days to pay the tax before making the levy. Verify and contact the lienholder. Ownership of Home

  40. HUD labels are located on the rear section of the home (opposite end of hitch). They are red in color and attached to the exterior siding of the home. Trade names are by the front door or the bottom right hand corner of the towing side of the home. Serial numbers are cold stamped into the metal on the front metal cross member or on the tow bar (hitch). Identifying Information

  41. Clayton Homes, Inc. places a Trade Name tag near the front window and stamps the serial number on the cross member, not the tow bar. Each home has a data plate full of information about the home. Clayton Homes places the Data Plate on the inside of the closet of the master bedroom. The Data Plate contains information that includes the serial number and other information for the home such as the climate zone and wind speed that the home was built for. The Data Plate may also be found near the electrical panel or inside a cabinet door. Identifying Information

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