1. Local Government Division
and
Tag & Tax Update
NCGFOA 2018 Summer Conference
July 15-17, 2018
Holiday Inn, Wrightsville Beach

2. Local Government

3. What’s New? Distribution Unit moved to Financial Services Retirement
David Baker, NC County Commissioners’ Assoc.
Organization
Tony Simpson, Director
Mike Connolly, Assistant Director
Doug Huffman, Real Property Manager
Tina Stone, Personal Property Manager
Vacant, Public Service Manager

4. Goals Quality customer service Increased presence in counties
Improve Tag & Tax user experience
On-demand data reporting
Efficient data distribution
Well formatted exports
Documents explaining reports
Actionable data
Data accuracy

5. Public Service Certified value of $34 billion for FY 2017-18
60% of value from three companies
Duke Energy Carolina
Duke Energy Progress
Piedmont Natural Gas
Overall state increase for FY
Variations at county level

6. Information Unit TR-1 and TR-2 New information database
Enhancing automation process
Implementing data import capabilities
Additional data verification
User-friendly forms
Warning messages to identify errors
New information database
Capability to cross reference databases
Additional report options
Data quality verification

7. Property Tax Reappraisal standards Appeal manual update
Published and distributed to all assessors
Workshop being developed
Appeal manual update
Exemption manual update
Improved correspondence/forms

8. Education Property Tax Education Partnership
NCDOR and UNC School of Government
Increased quality and offerings
Reduced cost

9. Tag & Tax

10. Tag & Tax MyDMV VTS hardware replacement Card reader replacement
Paid tax receipts
Registration and license renewal
Reduced taxpayer phone calls
VTS hardware replacement
Card reader replacement
LPAs
Driver license offices

11. Tag & Tax PayIt mobile app Vendor online payments New report database
Processing fee for citizens
New report database
Working group to address revenue concerns
NCDOR
NC Association of County Commissioners
NC League of Municipalities

12. FY 2015-16 Collections RENEWAL MONTH TOTAL VPT COLLECTION TOTAL FEES
NET VPT COLLECTION
JULY
$75,469,949
$2,182,066
$73,287,883
AUGUST
$74,306,274
$1,968,267
$72,338,008
SEPTEMBER
$68,201,359
$1,973,687
$66,227,671
OCTOBER
$71,657,364
$1,263,060
$70,394,304
NOVEMBER
$58,574,118
$2,674,601
$55,899,517
DECEMBER
$65,224,369
$2,132,954
$63,091,415
JANUARY
$62,324,860
$2,024,631
$60,300,230
FEBRUARY
$72,154,715
$2,273,469
$69,881,246
MARCH
$81,279,002
$2,452,061
$78,826,941
APRIL
$77,577,571
$1,445,771
$76,131,800
MAY
$77,472,338
$2,337,437
$75,134,901
JUNE
$80,248,215
$2,313,698
$77,934,517
TOTAL
$864,490,135
$25,041,702
$839,448,433

13. FY 2016-17 Collections RENEWAL MONTH TOTAL VPT COLLECTION TOTAL FEES
NET VPT COLLECTION
JULY
$82,421,055
$2,460,971
$79,960,085
AUGUST
$88,476,273
$2,341,261
$86,135,012
SEPTEMBER
$76,668,205
$2,379,980
$74,288,225
OCTOBER
$69,821,206
$2,090,125
$67,731,081
NOVEMBER
$64,009,618
$2,019,610
$61,990,008
DECEMBER
$64,710,390
$2,217,519
$62,492,871
JANUARY
$72,990,061
$2,268,476
$70,721,585
FEBRUARY
$72,189,326
$2,259,749
$69,929,577
MARCH
$90,320,565
$2,655,877
$87,664,688
APRIL
$75,978,572
$2,333,900
$73,644,672
MAY
$83,689,818
$2,491,438
$81,198,380
JUNE
$85,513,537
$2,420,578
$83,092,959
TOTAL
$926,788,627
$27,939,484
$898,849,143

14. FY 2017-18 Collections RENEWAL MONTH TOTAL VPT COLLECTION TOTAL FEES
NET VPT COLLECTION
JULY
$84,114,784
$2,304,271
$81,810,513
AUGUST
$87,191,349
$2,328,308
$84,863,041
SEPTEMBER
$73,938,009
$1,363,813
$72,574,196
OCTOBER
$74,173,205
$2,182,873
$71,990,332
NOVEMBER
$66,321,160
$2,072,955
$64,248,205
DECEMBER
$68,661,757
$2,284,481
$66,377,276
JANUARY
$73,472,131
$2,298,806
$71,173,325
FEBRUARY
$77,165,217
$2,356,462
$74,808,755
MARCH
$87,406,981
$2,614,881
$84,792,100
APRIL
$84,689,330
$2,532,107
$82,157,224
MAY
$84,812,875
$2,596,280
$82,216,595
JUNE
$87,979,099
$2,487,796
$85,491,303
TOTAL
$949,925,897
$27,423,033
$922,502,865

15. Tax & Tag Collections FISCAL YEAR TOTAL VPT COLLECTION TOTAL FEES
NET VPT COLLECTION
$570,960,352 ?
$791,064,785
$26,079,920
$764,984,864
$799,217,506
$24,552,760
$774,664,746
$864,490,135
$25,041,702
$839,448,433
$926,788,627
$27,939,484
$898,849,143
$949,925,818
$27,423,033
$922,502,865

16. VTS Reporting Challenges
Reports unavailable before 11:00 AM
Database restoration and indexing lengthy
Report timeout
Difficulty processing large amount of data
Information extraction
Explore multiple reports to locate information
Financial reconciliation
Difficulty identifying problem bill – manual

17. VTS Reporting Challenges
Database size increasing
No solution for data archiving
No dashboard – KPIs
KPI data not consolidated
No alerts when something goes wrong

18. Next Steps Satisfy audit requests Consolidate reports Ad-hoc reporting
Reports to fulfill state and county business needs
Consolidate reports
Ad-hoc reporting
Validate integration points
Improve finance reconciliation
Easy method to find problem bills
Specify format of STARS finance file to import into VTS

19. Next Steps Identify critical areas for monitoring
Drill down errors
Alerts and notifications
Archiving historical data
Set time limit for storing in operational database
Determine data purge criteria
Improve VTS application performance and database maintenance

20. Next Steps Identify critical areas for monitoring
Drill down errors
Alerts and notifications
Archiving historical data
Set time limit for storing in operational database
Determine data purge criteria
Improve VTS application performance and database maintenance

21. Legislation

22. Legislation Session Law 2018-5: Appropriations Act of 2018
Section 38.9(a) – Amends N.C.G.S. § Effective July 1, 2017
Adjusts weekend and holiday provision
Includes tax office and USPS closures
State/local government disaster declarations
Section 38.10(d) – Amends N.C.G.S. § – Effective June 12, 2018
Establishes single exemption application
Charter schools
Qualifying mobile classrooms
Certain energy mineral interest properties
Lands held in trust for Eastern Band of Cherokee Indians

23. Legislation Session Law 2018-95: PUV Changes
Amends N.C.G.S. § – Effective July 1, 2019
Expands Wildlife PUV
Hunting and fishing reserves
Shooting
Wildlife observation
Wildlife activities
Increases acreage cap to 800 acres for new designations

24. Legislation Session Law 2018-98: Violate Tax Law/Venue/Property Tax
Section 1 - Amends N.C.G.S. § – Effective July 1, 2019
Exempts leasehold interest in exempt real property
Session Law : Regulatory Reform Act of 2018
Section 25 - Amends N.C.G.S. § – Effective July 1, 2018
Expands exemption of qualifying personal property and mobile classrooms of for profit charter schools

25. Legislation Session Law 2018-113: NC Farm Act of 2018
Section 9 - Amends N.C.G.S. § – Effective June 27, 2018
Land records must provide notice of certain farms
Poultry, swine, dairy, and other qualifying farms
Voluntary agricultural districts
Section 14 - Amends N.C.G.S. § – Effective July 1, 2019
Counties must use DOR schedule if valuing farm equipment by cost
Section 15 - Amends N.C.G.S. § (a) – Effective July 1, 2019
No application, survey or plat required to exempt family cemeteries

26. Pending Legislation
Senate Bill 153: Military Retiree State Income Tax Relief
Section 3(a) – Proposed Amendment of N.C.G.S. § C
Increase Disabled Veteran Homestead Exclusion from $45,000 to $100,000
Proposed effective date is July 1, 2019
Section 3(b) - Proposed Addition N.C.G.S. § E
Create homestead exclusion for surviving spouses of emergency personnel officers killed in the line of duty
Section 5 - Proposed Amendment of N.C.G.S. §
Exempts commercial property held for sale, rental or burial rights

27. Local Government Division
Questions?
Tina Stone, PPS
Local Government Division