2019-264-Order No. 2019-026 Recorded 6/28/2019Recorded in Deschutes County CJ2019-264
Nancy Blankenship, County Clerk
Commissioners' Journal 06/28/2019 9:45:12 AM
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BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Cancelling Uncollectible Personal
Property Taxes of $31,828.95
*
* ORDER NO. 2019-026
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 $6,244.27 and uncollectible personal property taxes
described in Exhibit "B" attached hereto and, by this reference, incorporated herein in the principal amount of
$25,584.68.
Dated this of , 2019
PAGE 1 OF 1- ORDER NO. 2019-026
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
ANTHONY D BONE, Commissioner
—
ORS 311.790 Cancellation of Uncollectible Property Tax
EXHIBIT A
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366.34
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2007
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$ 398.39
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382.70
$ 382.70 '..
2009
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2010
323.19
$ 323.19
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226.63
$ 226.63
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2014
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$ 413.62
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Taxpayer Name
Harris. Charles Carvle
Bennett, Karen W
Vanderhoof, Tara
Doan, Ronald
Dyer. Jeremy & Erin
Roman Solorio, Samuel
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June 26, 2019
DESCHUTES COUNTY FINANCE DEPARTMENT
Wayne Lowry, Finance Director/Treasurer
To: Deschutes County Board of County Commissioners
From: Wayne Lowry, Deschutes County Tax Collector L'
Judi Hasse, Deschutes County Accounting Supervisor
David Doyle, Deschutes County Legal Counsel
RE: Request for Order to Cancel Uncollectible Personal Property Taxes
Your approval is requested to cancel $31,828.95 in personal property taxes. On a percentage
basis, the $31,828.95 represents 0.35 % (.00350) of the personal and manufactured structure
taxes levied in the 2018-19 tax year ($7,953,924.33 and $1,136,274.90 respectively).
A summary of prior cancellations by tax year is as follows:
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
2016-17 58,599.65
2017-18 17,931.84
The $31,828.95 consists of: 1) Six uncollected manufactured structure accounts totaling taxes of
$6,244.27 and 2) Nineteen uncollectible personal property accounts totaling $25,584.68.
Categorically, the items being cancelled are as follows:
1. Manufactured Structures:
a) Abandoned under ORS 90.675 (6 accounts)
2. Personal Property:
a) Bankruptcies (1 account)
b) Business failures (18 accounts)
$ 6,244.27
$ 843.6()
24,741.08
$ 25,584.68
TOTAL (25 accounts) $ 31,828.95
1300 NW Wall Street, Ste. 203 Bend, Oregon 97703 P.O. Box 6005 Bend, Oregon 97708-6005
t' (541) 617-4721 )www.deschutes.org/finance
Page 2 of 2
2018 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 underdissolved corporations and business failures (item 2b above)
relate to taxes imposed on non-existent businesses and/or assets.
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 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 Wall St, Bend, OR 97703
(541) 388-6570 - Fax (541) 385-3202 - https://www.deschutes.org/
AGENDA REQUEST & STAFF REPORT
For Board of Commissioners BOCC Wednesday Meeting of June 26, 2019
DATE: June 19, 2019
FROM: Wayne Lowry, Finance, 541-388-6559
TITLE OF AGENDA ITEM:
Consideration of Signature of Order No. 2019-026 Cancelling Uncollectible Personal
Property Taxes of $31,828.95
RECOMMENDATION & ACTION REQUESTED:
Motion to approve signature of Board Order 2019-026
BACKGROUND AND POLICY IMPLICATIONS:
Personal property taxes are considered to be uncollectible when the cost of collection exceeds
the amount of the tax, or when it is no longer reasonable or feasible to pursue collection. It
has been the County's procedure to cancel personal property tax accounts once each year,
The last cancellation was approved by the Board of County Commissioners on June 27, 2018
in the amount of $17,931.84.
FISCAL IMPLICATIONS: It is recommended that the Board of County Commissioners
approve cancellation of $31, 828.95 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.
ATTENDANCE: Wayne Lowry, Finance Director/Treasurer