Transcript Update to HB 1779 - Department of Revenue

HB 1779 Vehicle Property Tax
Collection
A Priority Goal of the NCACC
W.A. (Pete) Rodda, CAE, RES
David Baker, MPA, PPS
Project Goals
 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.
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Current 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:
RMV
Annual
Statewide Average
87.22%
97.91%
100,000+
88.09%
98.37%
50,000 – 99,999
85.37%
96.96%
25,000 – 49,999
84.01%
96.61%
24,999 and Below
84.08%
95.23%
*Source: LGC Memorandum #2012-14, 4/17/2012
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Governance – Cross Functional Development
HB 1779 Project
Sponsor
Stakeholders
Citizens, counties, auto dealers,
tax assessors, LPAs
Limited number
of decision
makers
Steering Committee
DMV, DOR, DOT IT, NCACC
NC ITS
NC ITS
EPMO
Architecture / Security
HB1779 PROGRAM OFFICE
NC DOT
PMO
NC DOT
Architecture / Security
HB 1779
Program Manager
Manages program
HB 1779
HB 1779
Business Architect
Solution Architect
Owns the technical
solution
Owns the HB1779
Business Solution
Core Teams
DOR
STARS Development
DOR IT
DMV
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Financial Accounting
(Billing & Payment)
Vehicle Renewal/Reissuance Process
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New System: “Simultaneous Billing”
 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.
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New System: “Simultaneous Billing”
 In the new system property taxes will be
included with the “invitation to renew.”
 The RMV owner has legitimate options NOT to renew the
registration.
 Taxes are collected by DMV/License Plate Agencies (LPAs) (no
partial payments).
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Major Differences Between “Current”
Verses “New” System
 With the new system:
• No more billing in arrears – billing is done when the
invitation to renew is sent. Vehicle cannot be registered
unless the taxes are paid.
• The local collector is not charged with collection.
• A tax levy (in the traditional sense) is not created.
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Major Differences Between “Current”
Verses “New” System
 With the new system:
• All assessments (valuation, SITUS, taxability) will be
performed in statewide Vehicle Tax System (VTS)
administered by the Department of Revenue.
• Refunds will still be handled by the local governments using
the VTS.
• DOT Fiscal will distribute local tax revenue to the counties,
who will in turn distribute to other taxing units.
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Configuration
 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.
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Implementation
 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!
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Registered Motor Vehicle Process Chart – July 2013 Implementation
Registration
File Delivery/
Processing
File Delivery/
Processing
Notice
Taxes
Past
Enforcement
Renewed
Old System
New System
Prepared
Due
Due
Begins
Block Notice
Block
Nov-12
Jan-13
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Dec-12
Feb-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Jan-13
Mar-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Feb-13
Apr-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Mar-13
May-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Apr-13
Jun-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
May-13
Jul-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Jun-13
Aug-13
Sep-13
Oct-13
Nov-13
Dec-13
Jan-14
Feb-14
Jul-13
Apr-13
May-13
8/15/2013
8/16/2013
N/A
N/A
N/A
Aug-13
May-13
Jun-13
9/15/2013
9/16/2013
N/A
N/A
N/A
Sep-13
Jun-13
Jul-13
10/15/2013
10/16/2013
N/A
N/A
N/A
Oct-13
Jul-13
Aug-13
11/15/2013
11/16/2013
N/A
N/A
N/A
Nov-13
Aug-13
Sep-13
12/15/2013
12/16/2013
N/A
N/A
N/A
Dec-13
Sep-13
Oct-13
1/15/2014
1/16/2014
N/A
N/A
N/A
Jan-14
Oct-13
Nov-13
2/15/2014
2/16/2014
N/A
N/A
N/A
Feb-14
Nov-13
Dec-13
3/15/2014
3/16/2014
N/A
N/A
N/A
Mar-14
Dec-13
Jan-14
4/15/2014
4/16/2014
N/A
N/A
N/A
Apr-14
Jan-14
Feb-14
5/15/2014
5/16/2014
N/A
N/A
N/A
May-14
Feb-14
Mar-14
6/15/2014
12
6/16/2014
N/A
N/A
N/A
Jun-14
Mar-14
Apr-14
7/15/2014
7/16/2014
N/A
N/A
N/A
Local Impact
 16 billing cycles in FY 2014:
• Four under current system, twelve under new system.
• Additional billing cycles due to moving away from billing in arrears
to concurrent billing/registration renewal.
• Vehicle tax years remain the same; only the due dates are
changing.
• The additional billing cycles are a one-time occurrence.
• THIS IS NOT A WINDFALL!
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MV Process Chart
 RMV Process Chart_1.xlsx
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Statewide Training Opportunities
 Tax Association Meetings
 “Road Show” Demos planned for October 15 – 19, 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
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Conversion and Testing
WHO
DATE
INTRODUCTORY
SESSION
TESTING
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
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Vehicles not Handled by VTS
(1) Motor 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.
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Vehicles not Handled by VTS
(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.
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Exemptions and Exclusions
 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.
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Renewals
 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 15th of the month.
 Appeal – Value appeal must be made with
30 days of due date.
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New Registration
 Real time
 Sales price used as the value if it is a dealer
sale.
 This will help with trailers, RV and special
vehicles.
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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”)
Leg. Changes
 SB 826
 Minimal tax bills 105-321(f)
 Appeals/Exemption 105-330.2 and 105330.3(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.
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Unregisterd vehicles
105-330.3(a1)
 Stops double taxation.
 Allows vehicles to be billed for missing
months.
 Bill as unregistered in county system.
 Spreadheet: E:\Unregistered vehicle
bills.xlsx
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Work Queues
 No value
 No Situs
 RV
 Plus Code
 Condition Code
 Exemption
 Exception
 Antique MV
 Trailer
 Notes
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Fields for alias record
Field name Example Field name Example
Record type A
Alias street
type
ST
Field name Example
Alias state
County
Address Id
5874 Alias street
number
Alias street
name
Alias street
range from
Alias zip plus
Alias street
range to
Alias type
LIBERTY
Alias street
prefix
NC
Alias zip
code
27316
O
Alias street
suffix
Alias type:
A for Abbreviation
C for Name Change
O for Other Name
P for Preferred Name
Alias city
RAMSEUR
VTS Situs Validation
Process
Questions?
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