2016-337-Order No. 2016-027 Recorded 6/27/2016REVIEWED
LEGAL COUNSEL
DESCHUTES COUNTY OFFICIAL RECORDS CJ 2016,337
NANCY BLANKENSHIP, COUNTY CLERK �+u y
COMMISSIONERS' JOURNAL 06/27/2016 02:43 03 PM
263
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BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Cancelling Uncollectible Personal
Property Taxes of $14,615.17
* ORDER NO. 2016-027
WHEREAS, Wayne Lowry, 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 manufactured structures property taxes described in Exhibit "A" attached hereto and, by this
reference, incorporated herein, in the principal amount of $608.19 and uncollectible personal property taxes
described in Exhibit "B" attached hereto and, by this reference, incorporated herein in the principal amount of
$14,006.98.
Dated this
, 2016 BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
Recording Secretary
PAGE 1 OF 1- ORDER NO. 2016-027 (06/06/2016)
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June 6, 2016
Finance Department/Tax Collection
Wayne Lowry, Finance Director and Tax Collector
Andrea Perkins, Deputy Tax Collector
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1300 NW Wall St, Suite 203, Bend, OR 97701-1960
P.O. Box 7559 Bend, OR 97708-7559
(541) 388-6540 - Fax (541) 385-3248
www.deschutes.org/finance
To: Deschutes County Board of County Commissioners
From: Wayne Lowry, Deschutes County Tax Collector
Andrea Perkins, Deschutes County Deputy Tax Collector
David Doyle, Deschutes County Legal Counsel
RE: Request for Order to Cancel Uncollectible Personal Property Taxes
Your approval is requested to cancel $14,615.17 in personal property taxes. On a percentage
basis, the $14,615.17 represents 0.02 % (.0019) of the personal and manufactured structure taxes
levied in the 2015-16 tax year ($6,464,104.36 and $897,624.10, respectively).
A summary of prior cancellations by tax year is as follows:
2001-02 $ 53,965.00
2003-04 29,291.00
2004-05 26,537.00
2006-07 49,553.67
2008-09 86,903.57
2009-10 49,139.64
2010-11 37,277.91
2011-12 51,958.84
2012-13 136,431.43
2013-14 37,141.65
2014-15 40,121.07
The $14,615.17 consists of: 1) four uncollected manufactured structure accounts totaling taxes
of $608.19 and 2) seven uncollectible personal property accounts totaling $14,006.98.
Categorically, the items being cancelled are as follows:
1. Manufactured Structures:
a) Abandoned under ORS 90.675 (2 accounts)
b) Removed without our knowledge (2 accounts)
2. Personal Property:
a) Bankruptcies (2 accounts)
b) Business failures (4 accounts)
c) Took personal property and left area (1 account)
TOTAL (11 accounts)
$ 503.53
104.66
$ 608.19
$ 9,181.52
3,127.73
1,697.73
$ 14,006.98
$ 14.615.17
Page 2 of 2
2016 Personal Property Tax
Cancellations
Pursuant to Oregon law, David Doyle, Legal Counsel, has reviewed the amounts to be cancelled
and agrees that these accounts are not collectible.
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 statutes 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, 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 2b 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 produced positive results.