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2009-1367-Order No. 2009-043 Recorded 7/2/2009DESCHUTES COUNTY OFFICIAL RECORDS ?009.1367 REVIEWED NANCY BLANKENSHIP, COUNTY CLERK COMMISSIONERS' JOURNAL 07/02/2009 08;18;32 AM LEGAL COUNSEL 11 ill! I ~l 11 1111 11 1 11 ill I ill 2id7 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Cancelling Uncollectable Personal Property Taxes of $86,951.00. ORDER NO. 2009-043 WHEREAS, Marty Wynne, the Deschutes County Tax Collector, pursuant to ORS 311.790 has petitioned the Board of County Commissioners to cancel delinquent personal property taxes on certain personal property accounts on the grounds that the taxes are wholly uncollectible, and WHEREAS, the Deschutes County Legal Counsel has determined that the taxes requested to be cancelled by the Deschutes County Tax Collector are wholly uncollectible, and joins in that request, and WHEREAS, ORS 311.790 provides that the Board of County Commissioners may cancel taxes when the Tax Collector and the County Counsel request in writing that the taxes are uncollectible; now therefore, THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HEREBY ORDERS as follows: Section 1. The Deschutes County Tax Collector is hereby authorized and directed to cancel the uncollectible personal property taxes described in Exhibit "A" attached hereto and, by this reference, incorporated herein, in the principal amount of $86,951.00. / i Dated this Z' of 2009 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON ATTEST: Recording Secretary TAMMY BANEY, Chair DE IS R. LUKE, Vice Chair cddlo- a4llel~ - ALAN UNGER, Commissioner PAGE 1 of 1- ORDER No. 2009- 043 (07/01/2009) TES w 2 Finance Department/Tax Collection Marty Wynne, Treasurer and Tax Collector Q A David Lilley, Deputy Tax Collector AAA 1300 NW Wall St, Suite 200, Bend, OR 97701-1960 (541) 388-6540 - Fax (541) 385-3248 www. co. deschutes. or. us To: Deschutes County Board of County Commissioners From: Marty Wynne, Deschutes County Tax Collector Dave Lilley, Deschutes County Deputy Tax Collector Laurie Craghead, Deschutes County Assistant Legal Counsel RE: Request for Order to Cancel Uncollectible Personal Property Taxes Your approval is requested to cancel $86,951.00 in personal property taxes. It has been two years since our last request. On a percentage basis, the $86,951.00 represents .6% (006) of the personal and manufactured structure taxes levied in the 2007-08 and 2008-09 tax years ($13,202,294.87 and $1,683,534.54, respectively). A summary of prior cancellations by tax year is as follows: 2000 -01 $72,933.00 2001 -02 53,965.00 2003-04 29,291.00 2004 -05 26,537.00 2006 -07 49,553.67 The $86,951.00 consists of: 1) fourteen uncollected manufactured structure accounts totaling taxes of $7,693.14 and 2) fifty uncollectible personal property accounts totaling $79,257.86. Categorically, the items being cancelled are as follows: 1. Manufactured Structures abandoned under ORS 90.675 (5 accounts) $ 1,881.95 2. Bankruptcies (5 accounts) 7,392.03 3. Dissolved Corporations and other non-bankruptcy Business failures (43 accounts) 71,865.83 4. Other (9 manufactured structure accounts) 5,811.19 TOTAL (64 accounts) $86,951.00 Pursuant to Oregon law, Laurie Craghead, Assistant Legal Counsel, has reviewed the amounts to be cancelled and agrees that these accounts are not collectible. Page 2 of 2 2009 Personal Property Tax Cancellations The Tax Department staff has used a reasonable and consistent level of collection effort to try to collect the taxes while minimizing the collection costs and negative relations with the taxpayer. Abandoned manufactured structures are governed by certain laws and statues that provide for the cancellation of taxes. Bankruptcies are pursued to the extent permitted by U.S. bankruptcy law. Oregon law requires that a final personal property return be filed to terminate the taxation of business property. This frequently does not occur when a business has terminated, resulting in the continued assessment and taxation of property that is no longer being used in a business and may no longer exist. A portion of the taxes included under dissolved corporations and business failures (item 3. above) relate to taxes imposed on non- existent businesses and/or assets. We have modified aspects of our collection process to accommodate the realities of the current economic climate. We have significantly increased the use of garnishments of wages and checking accounts. We also have increased the number of attachments of personal property tax accounts to real property accounts. We have successfully collected a number of personal accounts where the business owner's personal residence is being foreclosed upon by their lender. Lenders tend to pay the taxes promptly in order to extinguish our priority lien. We have also employed preventative measures such as sending letters to local leasing companies and banks reminding them of their responsibility to satisfy tax liens when repossessing business equipment. The response to these tools has definitely produced positive results. We recognize that in this environment it is often no longer prudent to afford a taxpayer as much time to bring their account current as it once was. j _j A ! I I i! I 10! 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