1. Tina Stone, Revenue Administrator III, PPS Robin Rogers, Property Valuation Specialist I Travis Isaacs, Property Valuation Specialist II NCDOR

2. System 2015 NCATA Spring Conference Greensboro, NC

3.  Revenue & Cost  Default Situs  Gap Billing  Municipal Vehicle Fees  Bankruptcy  Bad Debt  Tax Rates  Customer Service

4. Old system: “Billing in Arrears” Major Issues: Average of 66% of RMV bills are paid on time Average Collection Rates at Fiscal Year End by County Population: RMVAnnual Statewide Average87.22% 97.91% 100,000+88.09% 98.37% 50,000 – 99,99985.37% 96.96% 25,000 – 49,99984.01% 96.61% 24,999 and Below84.08% 95.23% *Source: LGC Memorandum #2012-14, 4/17/2012

5. 5 RENEWAL MONTHTOTAL VPT COLLECTIONTOTAL FEESNET VPT COLLECTION SETEMBER2013$22,867,319$0$22,867,319 OCTOBER2013$45,801,195$1,594,225$44,206,970 NOVEMBER2013$42,922,000$1,782,588$41,139,412 DECEMBER2013$51,147,385$2,623,719$48,523,666 JANUARY2014$53,763,541$1,803,535$51,960,006 FEBRUARY2014$56,441,018$956,491$55,484,527 MARCH2014$64,191,510$2,895,220$61,296,290 APRIL2014$66,084,464$1,932,074$64,152,390 MAY2014$67,411,659$1,059,476$66,352,183 JUNE2014$66,000,628$2,806,537$63,194,091 JULY2014$70,010,647$1,870,859$68,139,788 AUGUST2014$68,347,080$1,258,921$67,088,159 SEPTEMBER2014$65,388,089$2,764,489$62,623,600 OCTOBER2014$65,086,645$2,184,715$62,901,931 NOVEMBER2014$55,425,377$1,214,267$54,211,110 DECEMBER2014$64,957,508$2,040,799$62,916,709 JANUARY2015$62,957,492$2,168,995$60,788,498 Total$988,803,558$28,787,915$897,058,151

6. Old System Collections Gross Revenues Data from Treasurer's WebsiteStatewide Totals 2012-13 Total Revenue$570,960,352.28 2012-13 average collection per month$47,580,029.36 Tag and Tax collection Estimate Gross Revenues Statewide Totals Last 12 month average collection per month $ 64,358,509.85 Total Estimated Revenue for 2014-15 $772,302,118.24 Difference (increase) Gross Revenue $201,341,765.96 6

7. Tax Collection Percentages Tag and Tax System 80% Renewals @100% collection rate80.00% 20% Issuances @ 95% collection rate19.00% Statewide Collection Rate99.00% Old System Statewide Collection Rate86.20% 7

8.  Why are county’s required to have a “Default Situs”?? Default situs was initiated because when a taxpayer goes to purchase a registration they must pay the property tax. If the taxpayer’s county is correct, but the address being sent over does not match then the VTS will send back the default situs amount for that county.

9.  Is your county’s Default Situs effective? ◦ Does it cover the highest populated area or the highest possible tax district combination? It can be similar to throwing darts. ◦ NCVTS NCDMV

10.  On average about 3% paid the default situs in calendar year 2014. When you have almost 9 million vehicles that is still a large number.  What can county’s do to avoid taxpayers paying the default: ◦ Update the Situs Repository  Update with correct address or a variation called and alias  Update STARS Vehicle Location Address ◦ Review Default Situs Report

11. 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.

12. 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.

13. 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.

14.  How do we collect the taxes if they become delinquent? ◦ Tax Collectors will use the same remedies they used in the past under G.S. 105-365.1 thru 105-368 to collect taxes on personal property. ◦ Tax blocks that were used in the past cannot be placed on the vehicle under the new Tag & Tax law.

15.  G.S. 20-97(b) ◦ Cities and towns may levy a tax of not more than ($5.00) per year upon any vehicle resident in the city or town. The proceeds of the tax may be used for any lawful purposes.  If a city or a town wants to add a ($5.00) vehicle fee to the vehicle property tax. They would need to form a resolution and adopt it to their budget. The county would then add the fee to the VTS.

16.  G.S. 20-97(c) ◦ A city or a town that operates a public transportation system defined in G.S. 105-550 may levy a tax of not more than five dollars ($5.00) per year upon any vehicle resident in the city or town. The tax authorized under this subsection is in addition to the tax authorized by subsection (b) of this section and under any local legislation, would exceed ($30.00) per year. The proceeds of the tax may be used only for financing, constructing, operating and maintaining local public transportation systems. Cities and towns shall use the proceeds of the tax to supplement and not to supplant or replace existing funds or other resources for public transportation systems. This subsection does not apply to the cities and towns of Gaston County.

17.  When a taxpayer files a Bankruptcy Petition, an Automatic Stay immediately goes into effect. ◦ The Automatic Stay applies to every bankruptcy debtor under Title 11, Section 362 of the United States Code which creates a variety of restraints on creditors and of those restraints two are particularly important to RMV’s.  Under the Tag & Tax program the Automatic Stay would only be in affect the first year after that the property tax would be due.

18.  Pre-Petition: If a tax payer renews a registration or applies for an initial registration before filing for bankruptcy. There are only two situations under the Tag & Tax system that are pre-petition. ◦ When a taxpayer files bankruptcy after an existing registration expires but before the registration is renewed. ◦ When a tax payer files bankruptcy after buying a car from a dealer and obtaining a limited registration, but before a “regular” full year registration obtained.

19.  Post-Petition: If the renewal or registration is obtained after the bankruptcy filing. Technically if the registration and renewal are not due or delinquent at the time of filing. The taxes would be due at time of registration or renewal because the taxes were not due at the time of the filing. The only exception would involve limited registration plates.

20.  LRP: When a taxpayer applies for a new registration or registers a new vehicle the taxpayer has the option of obtaining an LRP which is good for sixty days past the initial month of registration. ◦ If the taxpayer declares bankruptcy before purchasing the vehicle and the taxpayer obtained an LRP they would be required to pay the property tax. ◦ If the taxpayer purchases the car, gets an LRP and then the taxpayer declares bankruptcy the “Automatic Stay” would be recognized.

21.  When a registration is renewed and it is determined that the taxpayer did not have enough funds in their account to cover the transaction (returned check) it is called a “Bad Debt”. DMV is the collection authority and is responsible for collecting these funds.  Counties are still credited the property taxes for 13 months. If the “Bad Debt” is not satisfied within that time period the debt is written off by DOT Fiscal and the funds are taken back from the county.

22.  When written off the ACH Remittance from DOT will reflect this “Bad Debt” as a debit. They will provide the tag and vin # so county’s can determine what jurisdictions the money needs to be held back from.  If the “Bad Debt” is paid after 13 months. County’s will see a credit for the funds in the same amount that was debited previously. In the past DOT had been splitting the collection fees between the county and DMV this will stop with the April ACH remittance. DMV will keep the penalty for collecting the “Bad Debt”  DMV’s collection rate is above 95%.

23.  Tax Rates for the 2015-16 fiscal year need to entered by Monday June 30, 2015.  Please send in by fax or email a signed copy of the tax rates from the adopted budget.(Not the entire budget just the pages pertaining to the tax rates) We do not want a screen shot from the VTS tax schedule screen. If you send a screen shot we cannot tell if you have made any errors.  After June 30 th tax rates can only be updated or changed by DOR staff. If your county will have an interim budget please let us know ASAP.

24. Did You Know…

25.  Know The Different Offices Within The DMV  Main Office/Raleigh (919-715-7000)  Call Center/Bladen County (919-814-1779)  License Plate Agency “LPA” http://ncdot.gov/dmv/locations.html http://ncdot.gov/dmv/locations.html  STARS “HelpDesk” for LPA Assistance Only

26. Tax Receipts County or By Calling Raleigh DMV 919-715-7000 or Bladen Call Center 919-814-1779 Double Payment Issues Bladen Call Center (Credit Cards/Online) Inspection Issues All Vehicles Must Be Inspected Yearly 877-421-0020

27. Refunds/Reversals Scenario: Customer pays incorrect county. Customer comes to county asking for refund. Customer is sent to LPA. LPA says “no refunds here, you have to go to the county”. Customer CountyDMV/LPA ???? RefundReversal

28. Refunds County Refunds DMV Reversals/DMV  Past 30 Days or Online Payment  Refund is created by county and mailed to customer  Within 30 Days  Refund is created behind the scenes & mailed to customer When sending the customer to the LPA do not use the word “refund”, please use “reversal”.

29. Tina Stone, PPS-tina.stone@dornc.comPPS-tina.stone@dornc.com Travis Isaacs- travis.isaacs@dornc.comtravis.isaacs@dornc.com Dave Duty- david.duty@dornc.comdavid.duty@dornc.com Robin Rogers- robin.rogers@dornc.comrobin.rogers@dornc.com Tabitha Ashe- tabitha.ashe@dornc.comtabitha.ashe@dornc.com (919)-814-1129 Customer ???? Refund Reversal