HomeMy WebLinkAboutOrder 016 - Cancel Pers Prop TaxesDeschutes County Board of Commissioners
1300 NW Wall St., Suite 200, Bend, OR 97701-1960
(541) 388-6570 -Fax (541) 385-3202 -www.deschutes.org
AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of June 23, 2014
Please see directions/or completing this document on the next page.
DATE: May 27, 2014
FROM: Loni Burk TaxlFinance \~< 541-388-6538
TITLE OF AGENDA ITEM:
Consideration of signature of Order No. 2014-016 Cancelling Uncollectible Personal Property Taxes of
$37,141.65.
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 26, 2013 in the amount of $136,431.43.
FISCAL IMPLICATIONS:
It is recommended that the Board approve cancellation of$37,141.65 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 REQUESTED:
Motion: To approve signature of Order No. 2014-016.
ATTENDANCE: Wayne Lowry or Loni Burk as necessary.
DISTRIBUTION OF DOCUMENTS:
Copy to Loni Burk, Chief Deputy Tax Collector, Tax Department
I
Finance Departmentffax Collection
Wayne Lowry, Finance Director and Tax Collector
Loni Burk, Deputy Tax Collector
1300 NW Wall St, Suite 203. Bend, OR 97701-1960
P.O. Box 7559 Bend. OR 97708-7559
(541) 3B8-6540 -Fax (541) 385-3248
www.deschutes.org/finance
To: Deschutes County Board of County Commissioners
From: Wayne Lowry, Deschutes County Tax Collector ~<
Loni Burk, 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 $37,141.65 in personal property taxes. On a percentage
basis, the $37,141.65 represents 0.57 % (.0057) of the personal and manufactured structure taxes
levied in the 2013-14 tax year ($5,793,702.71 and $693,198.84, 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
The $37,141.65 consists of: 1) eight uncollected manufactured structure accounts totaling taxes
of $3,21 0.20 and 2) twenty-nine uncollectible personal property accounts totaling $33,931.45.
Categorically, the items being cancelled are as follows:
1. Manufactured Structures:
a) Abandoned under ORS 90.675 (1 account) $ 287.88
b) Removed without our knowledge (7 accounts) 2,922.32
$ 3,210.20
2. Personal Property:
a) Bankruptcies (4 accounts) $ 3,620.76
b) Business failures (19 accounts) 24,203.88
c) Took personal property and left area (6 accounts) 6,106.81
$ 33,931.45
TOTAL (37 accounts) $ 37,141.65
Page 2 of2
2014 Personal Property Tax
Cancellations
Pursuant to Oregon law, Laurie Craghead, Assistant Legal Counsel, has reviewed the amounts to
be cancelled and agrees that these accounts are not collectible.
The Tax Department staffhas 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, 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.
--------
~
LEGAL COUNSEL
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Cancelling Uncollectible Personal *
Property Taxes of$37,14L65 ORDER NO. 2014-016 *
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 $3,210.20 and uncol1ectible personal property taxes
described in Exhibit "B" attached hereto and, by this reference, incorporated herein in the principal amount of
$33,931.45.
Dated this of , 2014 BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY,OREGON
TAMMY BANEY, Chair
ANTHONY DEBONE, Vice Chair
ATTEST:
Recording Secretary ALAN UNGER, Commissioner
PAGE 1 OF 1-ORDER NO. 2014-016 (06123/2014)
--
EXHIBIT "A"----_._-----.--_._--------.
UNCOLLECTIBLE MANUFAcnJRED STRUcnJRE TAXES
~-~-
2013-14
NAME
HgLMB~BETI'(
Filllow, Dennis
Hartzell, Richard ____
EIt:ler, Gilry
_
Hall~!'!ker, T ~rry
Qrlle1Ed
COMMENTS_SERIA~~iY~ ~1"'OUNi I TOTAL DUE
.-213!1m;2iii2 . $ ___i2.26j$ __12.261Asses.s()",sOf!!<:~receiV~~()~urTIentatj()n_t~e h0rTI.els gOIlt!:_Ihe h0rTIe hasb:een!emoved fr()lTl_t!tE! _ · J assessment roll.
212S4~ __~Ci!J$~__ 40.06_ ____~.allo\\l...IS decease d.: .~ilil keeps belngn!turnE!d: Notes 0ll_!~e_(Jutside of t~e_enveloJle tell us to'tl:'lt.. ..
lSj",jt__;;:t:____ ::'::1: ___ SO.63 isendlng these tax bills. A tree fell on the home so the home Is no longer there.
87.14 IJennifE!!.~erry,wJ!() bou~thepr()pertys(lidrem()\IInjl the.l1.0me wil!acontirlgency to the Plll'£hase of __
theJJroperty.
61.34 This mobile home was located at East Lake Resort. East Lake was sold to the Jones'. The Jones'
• 49.65
106518ti:i::1 t__ notarize<!ilJJaper Indica!irlg the mobile hClme was not there. Assessor's office has removed the home
j 2011; ~ 43.66 , from the assessment roll.
t 2012' $ 41.09 '
238.72
In_August~013,mo!>ile h(jme\\lasilb(lndofjde<!by the!"()~le pari< oWIl!r.The value was under $8!()()().()():
2011 i $ 100.47 , ,Taxes are being cancelled per statute. The home has been sold to another couple who paid the 2013-14
287.88 [taxes iii fuil------------ ----- ---J 20i2r $96.83 1$
1~3595; 89.25 Thismobi~\\IilslaSl:kno~n-,ocate.cl~2ooS5_R()maine Village w.~. There is no!IJlng there anymore.
70.72 Ed Onielleft the area a long tome ago. Could either be in Washington State or Florida.
j 66.95
_ r !--72.46 t=-~:~8-f
~a!<inson, Joe &
April 25'3251 ::1 ~ .. ·_~___~t~~~j~_~r_~e_~:_~_~:e._mi__ __~-o:.::"-.:::jll,--g_h_O_rn~.ltmCl,,-ed tOlcl~E!County:Uncl!a.. as to when ith-"!lpen~d.5:1i f
Lund, K'!r!llepenis'-'e'---___ ~~.... .. ,:::[" "',," '.e.ceased forY~Clr!i' ThE! tax statelTl_~tsco.n.tin~E!J~be ret~~ed.to~san uTl~E!liverilble.
2005 $ __ 163.03 ____ in the assess()r's office went to.~~e site and verifie~.!he home Is g()ne. _ _
2006! $ 167.18 j()Q71~ 193.66
--==-::::+-,$;:-122.16
+-------"--'-'-'-1 ?-~
20lOS.
lOll.?.. 82.99
2012 $ __ 76.78 1 _
_2013 J_ !l2.31j S.
Total Manufactured Structures
Page 10f1
~~,~~~-----'
Doorn Si~n & Design Co llC
Small Wonders Learning Center
Country Feed & Pet Supply
Maui Wowi Hawaiian Coffee
&Smoothies
(jreen Monster Sports llc
Jersey's Sports Bar I!.tJrill
Core RV _~Ma!ine Re~a!r_
llC
Pacific Ima~e Wear
Robil1~n Heat~n~I!.Cooling llC
The Fan Inc
209518
260540
261789
260304
256015!
----1-
. ---
I
2601301
208180
20081 $ 232.32
2009 _$ 227.46 $
_J
2oo9! $ 16.72
2010j-$ ~-'~~ 1i
2010 $ 261.54:r.~867 i $
20091 $ 492.71 $
20111 $ 497.17
t
2011 i $ 534.85
20121 $ 573.96! $
~~iitlJ;]:~ 1 $
EXHIBIT"B"
----~~----_._--------
UNCOlleCTIBlE PERSONAL PROPERTY TAXES
2013-14
TOTAl DUE COMMENTS
17.49 lOut of business. Inactive account.
88.45 I No 1c!1!~er in business~ In,,,c;ti\i:e account.
331.71 IWent out of business In 2009. I tried to collect from her. Never was successful. Inactive business.
447.36 rClosedln_~O)_O. By the time 1_ st(jrt~d my collection eff0rts,_ John said I would not have any luck~etting
I money from him because Safari Shirt Co was not in business any longer and he as an individual was not
'£f!sp;;;;-Sible !Clrthetaxes owJ~g. _-~~-------------
Went out of buslnes~ in 2009. After he dosed his business he ma_dE! _one $75.00 payment in 2012. He
459.78 I prOl"f1!sed severa~timesto~yin full, blltneverdid.The last attemptf()r' paYITlE!i1t was made!r1July 2013.
This day care center Is no longer In business.
460.15---t--~---~~--
iSince June 20111 have only spoken to one person at this business. All of the other times I called either
490.21 Inobody answeredorthe fax machine came o~. I e\fe1!sent majid-and called the owner's personal
Went out C!f bllsille~s in 2009. EqtJiprn~l1twas repossess!dJly Morgan McKenzlE!~ _Tyson left the area
492.71 la~went_to Indiana. The I"'~rn",ilingijddress we valid address. _______
one of those sitllations of "he said, she said". Supposed!y!ieather sub-let this bus!ness to
497.17 1<lI1~~E!~partybyt~~ last nameC>fHoughtc!!': When H()LJghtonclE!f!ultedol1~alloonpaYITlE!'!!' Heather,
a~o~ding to Houghton, remC!ved all of theequiRIllE!nt during thE!nig~~. _It has been saidthatshestored
theeguipment I1!Cll'le of her stora~e ~ulldings. She of coursedE!l1ies all of it. Neither party would
commJt to Il(jy!ng the~~E!~:
Thi~ac-,-o~I'l!~asalways a collection prC!~E!m~ln the past~e only wayt~e taxes w~ecollecte_d was
534,85 h,l/hen I at!ac~clreal ~roRerty and when house was sold I received a chE!ci<J()I"_t!Je tax~The owner
(l!the bll~l1!E!ss, Briall[)unnin&rn-<>-lI:E!d toJllnction City, Q~.HealsE~led ban~llPtCYinJ\JIy2013.
573.96 I No longer il1 ~us!ness'VJas left on theassessmellt!ollfor because h~~e_v~r filed a disposition
w!ththeasse~or's offi<:i!, He supposedly went into ~usiness m~kill~HydroFI~~k water bottlE!s.
634.01 I Left and went to Lakeview. I to him a collplE! of tim~~!ncehe He also filed ban~ru~tc:y
s<>-I~~ltconta~iflg him. I neverre(jllytr~E!cl collecting from_~'111 after the bankruptcy. __~___
i A stripj()illtin R~_drn()nd. The iltJilding Is still_there I can'tteliit'lt Is still !n Clperation. The nallle on
752.86 I mar9'Ji~is nolCl.Il~~!!!!E!_Fa_n.The place never l~ksJi~i!~ope~.__
Page 1 of 3
_ht__~,~~~~.Wl1 Oi ~I -,~-----------".
Lounge LLC
Bedrocks Coffee lLC
B~dr()cks Org~nic Coffee CO
~~c~,Douglas T
Lariat Construction & Dev
Selrit Flight Inc
Wini~()f ~he Ca~c~d~s
Hig~l)~sert§las~lnc
I:!igh & Redmond
Cafl:>et Center
Action Rental Inc
Mountain Performance Rentals
Advanced Performance Rentals
Columbia River Bank
Central Oregon Coffee Company
Eastside Java
John Fifer Excavating
Marz Inv~t,rTl,ent <l!EUP
(i~~!J)"s
Tri~ngle T Weldi!!!! Speclali~ts LLC __
266392
265360
204486
208605
148106
20091 $ 811.50 I $
2009
2010
2011
l 303.58
284.82
287.09 $
_.. 2010 i $ 405.46
2011l $64~:I~ L~
1860701u $ 1,117.23 r $
. I
257082t $ 1,199.13 $
257083 20101 $ 1,239.06 I $
199628 20111 S 1,542.05 I $
-------~--
2656411 2011 $ 562.00
2012 ~. 557.82
2013 $ 558.12
1785421. 2007 1412.86
2008 i.421.66
2009 $ 424.18
20io §. .~i~~~'i I $
EXHIBIT"B"
UNCOLLEC11BLE PERSONAL PROPERTY TAXES
2013-14
753.91 l~lJs!n~Ssclosed in wa~.sold t()~tisfy an. IRS lien.~;jrties who
are now in Washin~()nSt~t~~...~~~~~_
._.
Ca~!lcJ.r:;j.af1<:iJ()sh.!l0driguez this stand. They left in February 2011 and returned to
764.38 1 Lane County. They filed bankruptcy an<:l \\iere also sued by a priva.tE!p~rty for $35~0!:J()~
811.50 1 Has been out of bUSiness Not sure what he did with equipment. I ta~ked t.e hj~.acou!llE! of
times tot.1)' to collect he money he owes for taxes. He was argurnentativean.d uncooperative. Have not
tried recently.
~eft Deschute~~lJn.~y in 2010.Th.E!y..h.a~e been in ~ashi~_0!l_C.()u®,~nce then. They remained on.
... ).heassesSrnE!l1!roll,becaLl~E!disposal inforrn;jticlnYias never filedYiit~the ass.ess.()~'sEffic.E!~ I was ablE!
875.49 Ito 10catethE!.<J.w!1.E!r, M~Ey~ch.u, found her phone !lu.rI1b~~u_t 5.11.E!\\I()lJld flE!verreturn ro.y calls.
I don't really know a n}'t.l1.ing aboutthis..~c.c.eunt. I do not have any notes. lEO remelllbertalking tothe
1,055.21 [owner,R)'a.n.Dennis at one pOint, but I dO.f1ot haVE!.any notes on the conversation we had.
.~~timethis business was assessed was in 2008.
1,199.13 At the time the taxes
were certified but not pay the
2011 tax. Sean is now in W~S~i~Ofl~!~!E!..
11~39:06 [CI.o~d. Was owned by the person who had Performance Rentals.
1,542.05 1<:I.o~d_!:~HO. Received lE!tter from Tax Accountan.t t~a~ FDIC was in receivership.they were
ie)(empt from taxes. This falls under their code 12 USC 1825(b)(1). Took the Tax Accountant's work for it
~.dneverp~~s~edt~e~attel" -~-.--..... _.... ........ _... .
Steven Skipworth owned this coffee bar. He moved to Portland. I called his dad, James Skipworth who
..........~~-Wfo~~~~~~~:~~~~~~~~~:J~e~~~i;:ss Is closedandthatalleq~p~ent-is gone.N()<:Iis.Rosal .
--,.. _------
Fifer filed forbankru!l~9': OUEpr()o!Efciaim wasslJ_~rnl!t'!~C!I1dae!lroved bythetrustee; however, __
John's attorn!!), recommE!.n<:li!<:I.that th.ep/ptaxe~ be paid~)'~Cl~n outside of the ban.kruptcy. John neve!
h;jspal<:i; he sa.id lac~.Clf.~or_k..doe.s no!ena.~Ii!_hJm~oha\l.e money to pay the taxes.
254856 2011 1 733.?2 ...t............-...-...... -T~\l.i~CrniChael ac.c.ount. He. h.as. ma.ny oth.er c.r.e..d.. i.t..Cl...rs is on a cruise
2012 $ 1,071.:4.3 If . 1,804:9~+shipWOrking as ac~ef._____._
867 20081 $ 327.15. ~~~
2009 $ 774.60
2()1.()$ia3,30 I $
The
Page 2 of 3
--------------
EXHIBIT"B"
UNCOlLECTIBLE PERSONAL PROPERTY TAXES
2013-14
Hi~h Desert Tire Facto_ry
Simpso!1!Les & Anna
Simpson Excavating
Siteworks Excavation LLC
Ian Woodford
Total Personal Property.
20111 $ 2,015:~~
?
2005 $
2006 $ 286.27
$ 294.54
201D!! $ 328.83
2011 .~.. 332.32
20091 $6,644.OS
2010 $610.93
2,015.83 iThis a.~c()unt isa!1igh!rnari!: Dana Sorum hadHighQl!sertTir~actory.T_hl!real estate.wasf()!I!.closed
onbythe bank. This acco.tJntwas delinquent at the time foreclo~u~e.!nd ~~e bankpaid all of the
personal property taxes that were due at the time. Micheal Lehne prucha sed the real estate from the
~ank.1 used the landlord pOSsession rule.C>.nNllchal!'-t()gethil11toe~v the t~xes.l-ieJsaveryagitated
individuaL He says .th~£ersonalproeertLwas scrap"edJrl~anuary C?f201! an~!!!l!taxe~areJ:l()gus. There
is a new tire store located here that has their personal property account.
Notes on_t.his account datE! b~c.k.to The last attemptlmade totOjlk_t()Annal:).rles was il1.l\.ugust of
! 2012. I have never spoken to either person. I have left several phone messages but no one on one
c.ontact ha~b-.ee.~-rll~de. The assessor.so. ffice did go by i·he locat.ionanddeterrllined nothing was there,
[so th.1!Y removed the account fi:.Cllll the assessl11..ent !.o!L ...
$ ?,466:51
No longer in business. Last I knew he was in North Dakota working. He no longer has the equipment
$7,254.98 Iand was.rerti~ved f';-m the aSSeS~rllent r~lI. Siteworks E:;~~tion no longer e;ists.~~~-···
$ 33,931.45
Page 3 of 3