2017-367-Order No. 2017-014 Recorded 7/3/2017WED
LES'26UNSEL
Recorded in Deschutes County CJ2017-367
Nancy Blankenship, County Clerk
Commissioners' Journal 07/03/2017 3:21:47 PM
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Cancelling Uncollectible Personal
Property Taxes of $58,599.65
ORDER NO. 2017-014
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 $2,543.08 and uncollectible personal property taxes
described in Exhibit "B" attached hereto and, by this reference, incorporated herein in the principal amount of
$56,056.57.
Dated this of J ` , 2017
ATTEST:
Recording\Secretary
PAGE 1 OF 1- ORDER No. 2017-014 (06/19/2017)
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
ANTHONY DEBONE, Vice Chair
PHILIP G.HEN SON, Commissioner
264993 Central Oregon Internet/CYBERLOG
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June 19, 2017
Finance Department/Tax Collection
Wayne Lowry, Finance Director and Tax Collector
Andrea Perkins, Deputy Tax Collector
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 $58,599.65 in personal property taxes. On a percentage
basis, the $58,599.65 represents 0.73 % (.0073) of the personal and manufactured structure taxes
levied in the 2016-17 tax year ($7,000,954.76 and $992,783.33, 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
2015-16 14,615.17
The $58,599.65 consists of: 1) six uncollected manufactured structure accounts totaling taxes of
$2,543.08 and 2) twenty-two uncollectible personal property accounts totaling $56,056.57.
Categorically, the items being cancelled are as follows:
1. Manufactured Structures:
a) Abandoned under ORS 90.675 (1 accounts)
b) Removed without our knowledge (5 accounts)
2. Personal Property:
a) Bankruptcies (4 accounts)
b) Business failures (13 accounts)
c) Took personal property and left area (5 account)
TOTAL (28 accounts)
$ 477.21
2,065.87
$ 2,543.08
$ 7,355.91
27,150.59
21,550.07
$ 56,056.57
$ 58.599.65
Page 2 of 2
2017 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.
Deschutes County Board of Commissioners
1300 NW WaII St, Bend, OR 97703
(541) 388-6570 — Fax (541) 385-3202 — https://www.deschutes.org/
AGENDA REQUEST & STAFF REPORT
For Board of Commissioners Business Meeting of June 21, 2017
DATE: June 15, 2017
FROM: Wayne Lowry, Finance, 541-388-6559
TITLE OF AGENDA ITEM:
Consideration of Board Signature of Order No. 2017-014, Cancelling Uncollectible Personal
Property Taxes of $58,599.65
PUBLIC HEARING ON THIS DATE?: No
Deschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 - Fax (541) 385-3202 - www.deschutes.or2
AGENDA REOUEST & STAFF REPORT
For Board Business Meeting of June* 2017
Please see directions for completing this document on the next page.
DATE: June 6, 2017
FROM: Andrea Perkins Tax/Finance 541-388-6538
TITLE OF AGENDA ITEM:
Consideration of signature of Order No. 2017-014 Cancelling Uncollectible Personal Property Taxes of
$58,599.65.
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
Personal property taxes are considered to be uncollectible when the cost of collection exceeds the
amount of tax, or when it is no longer reasonable or feasible to pursue collection. It has been the
County's procedure to cancel uncollectible personal property tax accounts once every year or two.
The last cancellation was approved by the Board on June 22, 2016 in the amount of $14,615.17.
FISCAL IMPLICATIONS:
It is recommended that the Board approve cancellation of $58,599.65 in personal property taxes
deemed uncollectible. The attached letter explains the process staff followed to exhaust all avenues to
collect these taxes. Exhibit A and B provide additional details on each account to be cancelled.
RECOMMENDATION & ACTION REOUESTED;
Motion: To approve signature of Order No. 2017-014.
ATTENDANCE: Wayne Lowry or Andrea Perkins as necessary.
DISTRIBUTION OF DOCUMENTS:
Copy to Andrea Perkins, Chief Deputy Tax Collector, Tax Department