1. HB 1779 Vehicle Property Tax Collection A Priority Goal of the NCACC W.A. (Pete) Rodda, CAE, RES David Baker, MPA, PPS Dave Duty, NCDOR Travis Isaacs, NCDOR Greg French, Guilford County

2.  HB 1779 Project  Goals for today’s session.  What today is not.  Open Environment  Schedule for today Welcome HB 1779 Vehicle Property Tax Collection2

3.  Session 1; 9:00 am to 10:15 am 1779 Project Update  Break; 10:15 am to 10:30 am  Session 2; 10:30 am to 11:45 am VTS Live Demonstration  Lunch Break; 11:45 am to 1:00 pm  Session 3; 1:00 pm to 2:15 pm Building a Situs Table  Break; 2:15 pm to 2:30 pm  Session 4; 2:30 pm to 3:30 pm Treatment of Skipped Months/Unregistered MVs Schedule HB 1779 Vehicle Property Tax Collection3

4. 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 Collection4

5. In the new system, property taxes will be 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. 5HB 1779 Vehicle Property Tax Collection New System: “Simultaneous Billing”

6. 6HB 1779 Vehicle Property Tax Collection 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

7. 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 HB 1779 Vehicle Property Tax Collection7

8. Registered Motor Vehicle Process Chart – July 2013 Implementation File Delivery/ RegistrationProcessing NoticeTaxesPastEnforcement RenewedOld SystemNew SystemPreparedDue BeginsBlock NoticeBlock Nov-12Jan-13 Feb-13Mar-13Apr-13May-13Jun-13Jul-13 Dec-12Feb-13 Mar-13Apr-13May-13Jun-13Jul-13Aug-13 Jan-13Mar-13 Apr-13May-13Jun-13Jul-13Aug-13Sep-13 Feb-13Apr-13 May-13Jun-13Jul-13Aug-13Sep-13Oct-13 Mar-13May-13 Jun-13Jul-13Aug-13Sep-13Oct-13Nov-13 Apr-13Jun-13 Jul-13Aug-13Sep-13Oct-13Nov-13Dec-13 May-13Jul-13 Aug-13Sep-13Oct-13Nov-13Dec-13Jan-14 Jun-13Aug-13 Sep-13Oct-13Nov-13Dec-13Jan-14Feb-14 Jul-13 Apr-13May-138/15/20138/16/2013N/A Aug-13 May-13Jun-139/15/20139/16/2013N/A Sep-13 Jun-13Jul-1310/15/201310/16/2013N/A Oct-13 Jul-13Aug-1311/15/201311/16/2013N/A Nov-13 Aug-13Sep-1312/15/201312/16/2013N/A Dec-13 Sep-13Oct-131/15/20141/16/2014N/A Jan-14 Oct-13Nov-132/15/20142/16/2014N/A Feb-14 Nov-13Dec-133/15/20143/16/2014N/A Mar-14 Dec-13Jan-144/15/20144/16/2014N/A Apr-14 Jan-14Feb-145/15/20145/16/2014N/A May-14 Feb-14Mar-146/15/20146/16/2014N/A Jun-14 Mar-14Apr-147/15/20147/16/2014N/A 8

9.  RMV Process Chart_1.xlsx RMV Process Chart_1.xlsx MV Process Chart HB 1779 Vehicle Property Tax Collection9

10. Tax Association Meetings “Road Show” Demos planned for October, 2012 NCAAO Fall Conference, Thursday November 15, 2012 Statewide Training Sessions February 8 through March 8, 2013 Potential sites include Wilmington, Greenville, Fayetteville, Raleigh, Winston-Salem, Charlotte and Asheville. Webcasts Statewide Training Opportunities HB 1779 Vehicle Property Tax Collection10

11. WHO DATEINTRODUCTORYTESTING HB 1779 Vehicle Property Tax Collection11 Conversion and Testing SESSION SESSION 3 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

12. System Demo HB 1779 Vehicle Property Tax Collection12

13. Situs Session HB 1779 Vehicle Property Tax Collection13

14. Addresses in STARS County Code County in which the vehicle was last registered Controls which vehicles will be sent to a given county Provided by vehicle owner Residence Address (primary owner) Where the vehicle owner resides Provided by vehicle owner Lessee Address (primary lessee) Not the address of the owner Provided by leasing company at the time of transaction or lessee

15. Addresses in STARS Mailing Address Mailing address of the primary owner if different from the residence address Provided by vehicle owner One-Time Mailing Address One –time temporary mailing address Provided by vehicle owner Vehicle Location Address SITUS address of the vehicle if different from the residence address Controlled by the counties

16. Addresses in STARS County Code and Situs Address will be controlled through the VTS Counties will “send” vehicles to each other by changing the county code in VTS Process for mass change under development County code changes will be sent to STARS Situs address changes will be made in the VTS and sent to STARS

17. Business Rules An LPA can effectively change a situs at the request of the vehicle owner Change in Residence Address If a Vehicle Location Address (situs) is present, a change in Residence Address will NOT trigger a change in situs LPA must send the owner to the county If no Vehicle Location Address (situs) is present, a change in the Residence Address triggers a recalculation of the taxes in the VTS

18. VTS Situs Validation Process

19. SITUS Repository in VTS County Address ID Three Components Numeric, limited to 10 characters Effective Date (MMDDYYYY) End Date (MMDDYYYY) Street Number (maximum 6 characters) Prefix (N, NW, W, SW, S, SE, E, NE) Street Name (maximum 30 characters) Street Type (mostly 2 to 4 characters)

20. SITUS Repository in VTS Suffix (N, NW, W, SW, S, SE, E, NE) City State Zip (5 characters) Parcel Number (PIN for address points) Tax District Type (County, City, Fire, Special) Parcel Number

21. Address Ranges in VTS Street Range From Street Range To Parity (Even, Odd, Mixed, Unknown) “Break” on tax districts

22. Tax Jurisdictions The VTS does not support traditional townships Typically taxes are not levied for townships Hierarchy County, City, Police, Fire, Special

23. Address Sources DMV Data Tax Listings GIS Street Centerlines Planning Department 911 files 3 rd party addressing QAS, Peachtree Data, etc.

28. Tax Street District NBRNameTypeCityCountyCityFireSpecial 300PineridgeDrWinston SalemFCWS 301PineridgeDrWinston SalemFCWS 310PineridgeDrWinston SalemFCWS 311PineridgeDrWinston SalemFCWS 320PineridgeDrWinston SalemFCWS 321PineridgeDrWinston SalemFCWS 330PineridgeDrWinston SalemFCWS 331PineridgeDrWinston SalemFCWS 340PineridgeDrWinston SalemFCWS 341PineridgeDrWinston SalemFCWS 350PineridgeDrWinston SalemFCWS 351PineridgeDrWinston SalemFCWS 360PineridgeDrWinston SalemFCWS 361PineridgeDrWinston SalemFCWS 370PineridgeDrWinston SalemFCWS Address “Dump”

29. Tax AddressStreetEffectiveEndDistrict IDFromToParityStreet NameTypeCityDate CountyCityFireSpecial 1000000001300360EPineridgeDrWinston Salem0101201201012999FCWS 1000000010301361OPineridgeDrWinston Salem0101201201012999FCWS 1000000020580638EPeace HavenRdWinston Salem0101201212312013FCSF 1000000021580638EPeace HavenRdWinston Salem0101201401012999FCWS 1000000030581639OPeace HavenRdWinston Salem0101201201012999FCWS 1000000040640708EPeace HavenRdWinston Salem0101201201012999FCWS 1000000050641709OPeace HavenRdWinston Salem0101201201012999FCWS 1000000060710718EPeace HavenRdWinston Salem0101201212312013FCSF 1000000061710718EPeace HavenRdWinston Salem0101201401012999FCWS 1000000070709719OPeace HavenRdWinston Salem0101201201012999FCWS 10000000807201558EPeace HavenRdClemmons0101201201012999FCCL 10000000907211559OPeace HavenRdClemmons0101201201012999FCCL

30. HB 1779 Vehicle Property Tax Collection30

31. Vehicles not Handled by VTS HB 1779 Vehicle Property Tax Collection31 (1) M otor 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.

32. Vehicles not Handled by VTS HB 1779 Vehicle Property Tax Collection32 (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.

33.  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 HB 1779 Vehicle Property Tax Collection33

34.  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 15 th of the month.  Appeal – Value appeal must be made with 30 days of due date. Renewals HB 1779 Vehicle Property Tax Collection34

35.  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 HB 1779 Vehicle Property Tax Collection35

36. Issues – Limit Registration Plate LRP  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”)

38.  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 HB 1779 Vehicle Property Tax Collection38

39.  Stops double taxation.  Allows vehicles to be billed for missing months.  Bill as unregistered in county system.  Spreadheet: E:\Unregistered vehicle bills.xlsxE:\Unregistered vehicle bills.xlsx Unregisterd vehicles 105-330.3(a1) HB 1779 Vehicle Property Tax Collection39

40.  Appeals – must be made with 30 days of due date.  If before payment, STARS system will recalculate the amount of taxes due.  If after payment VTS system will calculate the amount of refund due. Appeals and Refunds HB 1779 Vehicle Property Tax Collection40

41. HB 1779 Vehicle Property Tax Collection41 Questions?