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2022-218-Order No. 2022-030 Recorded 6/17/2022Recorded in Deschutes County Steve Dennison, County Clerk CJ2�22�2� 8 REVIEWED Commissioners, Journal 06/17/2022 4:31 :25 PM LEGAL COUNSEL 2022-218 BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Cancelling Uncollectible Personal Property Taxes of $35,267.45 ORDER NO. 2022-030 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 $2,734.19 and uncollectible personal property taxes described in Exhibit "B" attached hereto and, by this reference, incorporated herein in the principal amount of $32,533.26. Dated this of 2022 BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON PATTI ADAIR, hair ANTHONY DEBONE, Vice -Chair ATTEST: Recording Secretary PHIL CHANG, Commiss'oner Page 1 of 1- Order No. 2022-030 V W N Oi r` I r` r` a,N 4 ri r` m m H a oo r. N r` F N V? N VT CO � W ~ ~ N V! VT O W O r` N M t/T N r` N o N N n N N N V V O uj N N � V? N N N W N � � t.' 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RECOMMENDED MOTION: Move Approval of Order No. 2022-030 Cancelling Uncollectible Personal Property Taxes of $35,267.45. 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 23, 2021 in the amount of $33,295.83. BUDGET IMPACTS: None. ATTENDANCE: Judi Hasse, Deputy Tax Collector-Finance/Tax Connie Heim, Accounting Technician-Finance/Tax June 9, 2022 To: Deschutes County Board of County Commissioners From: Wayne Lowry, Deschutes County Tax Collector Judi Hasse, 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 $35,267.45 in personal property taxes. On a percentage basis, the $35,267.45 represents 0.30 % (.0030) of the personal and manufactured structure taxes levied in the 2021-22 tax year ($10,193,499.71 and $1,426,057.22 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 2018-19 31,828.95 2020-21 33,295.83 The $35,267.45 consists of: 1) Four uncollected manufactured structure accounts totaling taxes of $2,734.19 and 2) Twenty-one uncollectible personal property accounts totaling $32,533.26. Categorically, the items being cancelled are as follows: Manufactured Structures: a) Abandoned under ORS 90.675 (3 accounts) $ 2,446.42 b) Removed without our knowledge (1 account) 287.77 $ 2,734.19 2. Personal Property: a) Previous Bankruptcies (6 accounts) b) Business failures (15 accounts) TOTAL (25 accounts) $ 13,330.42 19,202.84 $ 32,533.26 3 5 267.45 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 2a & 2b above) relate to taxes imposed on non-existent businesses and/or assets. We have continued the practice of garnishing wages and checking accounts where possible. We also continue to attach personal property tax accounts to real property accounts. We have in the past 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.