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Home My WebLink AboutOrder 027 - Cancel Uncollecrtible Personal 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 27, 2012 Please see directions for completing this document on the next page. DATE: June 4,2012 FROM: Loni Burk TaxlFnance 541-388-6538 TITLE OF AGENDA ITEM: Consideration of signature of Order No. 2012-027 Cancelling Uncollectible Personal Property Taxes of $51,958.84. 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 personal property tax accounts once every one or two years. FISCAL IMPLICATIONS: The cancellation of$51,958.84 in taxes formalizes the existing fiscal reality of the uncolectible accounts. It saves the county administrative costs to not have to continue showing the taxes on the rolls and to continue to attempt collection for taxes that cannot be collected. Therefore, although those unpaid taxes is money owed to the county, that money is not currently available for the county's expenditures. RECOMMENDATION & ACTION REQUESTED: Motion: To approve signature of Order No. 2012-027. ATTENDANCE: Marty Wynne or Loni Burk as necessary. DISTRIBUTION OF DOCUMENTS: Copy to Loni Burk, Chief Deputy Tax Collector, Tax Department. REVIEWED LEGAL~L For Recording Stamp Only BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON An Order Cancelling Uncollectible Personal * Property Taxes of $51 ,958.84 ORDER NO. 2012-027 * WHEREAS, Marty Wynne, 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, ORS311.790 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 personal property taxes described in Exhibit "A" attached hereto and, by this reference, incorpomted herein, in the principal amount of $46,267.17 and uncollectible manufactured structures property taxes described in Exhibit "B" attached hereto and, by this reference, incorporated herein in the principal amount of $5,691.67. Dated this of , 20_ BOARD OF COUNTY COMMISSIONERS --------, OFDESCHUTESCOUNTY,OREGON ANTHONY DeBONE, Chair ALAN UNGER, Vice Chair ATTEST: Recording Secretary TAMMY BANEY, Commissioner PAGE 1 OF 1-ORDER NO. 2012-027 (06/20/2012) Finance Department/Tax Collection Marty Wynne. Treasurer and Tax Collector Loni Burk. Deputy Tax Collector 1300 NW Wall St, Suite 203, Bend, OR 97701-1960 (541) 388-6540 Fax (541) 385-3248 www.co.deschutes.or.us To: Deschutes County Board of County Commissioners From: Marty Wynne, 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 $51,958.84 in personal property taxes. On a percentage basis, the $51,958.84 represents .8% (.008) of the personal and manufactured structure taxes levied in the 2011-12 tax year ($6,125,764.92 and $656,948.27, respectively). A summary of prior cancellations by tax year is as follows: 2000-01 $ 72,933.00 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 The $51,958.84 consists of: 1) twelve uncollected manufactured structure accounts totaling taxes of $5,691.67 and 2) twenty two uncollectible personal property accounts totaling $46,267.17. Categorically, the items being cancelled are as follows: 1. Manufactured Structures: a) Abandoned under ORS 90.675 (4 accounts) $ 2,374.85 b) Other (8 accounts) $ 3,316.82 Total Manufactured Structures (12 accounts) $ 5,691.67 2. Personal Property: a) Bankruptcies (4 accounts) $ 2,204.18 b) Dissolved Corporations and other non-bankruptcy Business failures (18 accounts) $ 44,062.99 Total Personal Property (22 accounts) $ 46,267.17 TOTAL (34 accounts) $ 51.958.84 Page 2 of2 2012 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 definitely produced positive results. We recognize that in this envirorunent it is often no longer prudent to afford a taxpayer as much time to bring their account current as it once was. ------- NAME ~RlALII HUBBARD INVESTMENTS u.c 21_ FPC FUNDING II LLC 191391 GETWlREl..ESS INC 219222 GET WIRELESS INC 211313 Fi>C FUNDING" LLC . 179947 ~GE & PINE LANDSCAPING LAWN MAINTENANCE 209594 HIMLER, EDWARD BASKIN-ROBBINS 111395 192721 STrw RETAIL LP CORRAL WEST RANCHWEAR INC 1156 218307 SUNBRIOOE CAPITAL INC 28247' SUN~~TALINC 262477 EI ! IS. FRANK H ELUS TREE SERVICE 148289 SUNIlRlOOE CAPITAL INC 282479 ... I'ARWEST GOlF CENTRAL OREGON INC 199823 RITZ CAMERA CENTERS INC 11975 194900 MONTICELLO HOMES INC 259113 MCKITRICK & HUGHES LLC THE BODY SHOP 169335 ~RcuM LAURIE MARCUM'S AUTO TIRE & EXHAUST 218637 ORGANIC STYLE LAB INC 25_ IEL .202!!!.L SiLVERCREEK WOODWORKS INC 182809 f··· ---~~-~~ -~~~-~- ! DIMICK CONSTRUCTION LLC I 205338 c-.. .. _ ..__. L&H GRADING 285125 Total Personal ProPerty T.xes I!XHIBIT -A UNCO&.LECnllLE 2012 .UaIN'" PtEMONAL PItOPIEKTY n:Af ~.MOUNT TOTAL DUE COMMENTS ---- 2008 $ 25.89 $ .25.89 No IonlJ!r In _1_. Hubban:ls. e!ld the tax..""'uclanlly as It Is. inactive account 2009 $ 411.19 S 40.89 Oedared banklUPlcY. No 1_an active lea .... ------ 2008 $ 711.89 S 78.89 _I._In Bend cIosed_ WI. filed. 2008 $ 184.12 S 184.12 See above_ c-2IlO9 . $ .. 218.48 $ 218.48 Declared bank_v. No '-an .ctlv.Ie..... 2007 S 270.78 $ 270:7'. Inactive ..elf 2008. Tried 10 collect the _"""due, but Teas Be.gIIt w •• ve!)' adamant about not e!~!!JI. 200e $ 398.29 $ 398.29 Mr. Hlm ....·iost_ Beskln-Robins and one _. I did attach this .ccount 10 one elf hi" pi..... of .......tate. Washington Mutual forecloud on the pn>perty and paid the ---- I>8I'SOItII ~~__at that time. 2008 $ 140.90 flied Chaoter11 bank_In 08. BankruPIcY cloud In 2010 but I nev... _ed 10 collect the tax.. that were owing. S 398.69 $ 539.59 .... ...~ 2008 $ 307.25 SunllrldQe want out of business In 2009. Maills returned and the phone number I hed ",ng -v when I c.Ued. 2009$ 441.51 $ 748.76 2008 $ 359.89 Sunbrl_ want out elf_Inns In 2009. M.III" returned and the Phone num_' hael, ~~II_~when I called. I 517.26 i 877.15 2009 $ 482.46 F~__Ma!)' EI .... sold off the equipment, bit I!l! bit. She was left with ve!)' IIUte Income. ·2010 $ 47~.75 $ 957.21 ----.._._ 2008 S 390.08 sUnbri~want out of business In 2009. Maills returned .nd the phone num_1 had, r.nll ......~ when I called. S 6111,92 .1 .1,Q4l?..!l8 2001 S 867.74 Equipmant .oId off and ba_"l was filed. Have not _n in _Iness .ince 2001. ~~.-.... $ 476.49 $ 11~~'.._.. .._---- 2009 $ 1170.58 .$ 1170.58 2008 S 867.80 $ 871.89 .$~ 2009 S .1432.85 $1432.85 2008 I 589.93 2009 II 630.09 2010 $ 634.14 .$ .1853.86 200a $ 547.13 2009 $ 786.45 2010 $ 795.25 $ 2128.13 -~--- ---- 2008 $ 948.89 2009 51263.00 S 2211.89 2006 5 1333.14 2006 .$2.m.!3. 2Q.1J! c.l-2,.6!9,93 $ 6708.90 2008 $ 4271.93 2009 $ 3959.21 LI.8,2~14 ~.. 2009 $14697.59 $ 14697.59 ... -~~-~-.. $ 46 267.17 Store cloud in 2008. Hive ml(j" UYiiiili ~.ttempts 10 contact Jamie at dllfwent .ddres... I have found. Never have recelved any response. All of his address..I have found have _n I Pot1:hond 1~.MontI!='IIlo Homes I. no.I~In buslnes.. . Out elf Business. eAlUIPmant want back to leasing compantes. New ex."""" dub at this location with his own new equipment lois elf ~111.ues willi the Ma",um•• Divorce. a""st warnonts for Cnolg and the auto repair bUllnes. burned. The lowing buslne•• WI. awarded to Laurie in the divorcE I then she went out of bullnesl. In the three yea .. ofta_ being owed on this account, I never talked to ellherof the owners. Since going out of buSiness, the home WIIforecloud on and there is no conta willi the OWne... - This business closed and I was not aware of it. ..... A·iNi·Citluaity of the economy. GOievlcte,fiiUm his building. Say. equipment got repo.....ed and I did ..nd • couple of '_rs to lien holders but they were not helpful; becsuse of confidentiality. When thoi"""""",y went b"dthey lei! for Ten.., Their-"'!uipment wa.reposs.ssed by the ba..r>f<.T.!:!!l.!!!t)"edti~k.he... and our cl.i.....ntl~....nempl"l!d and living In a ca Ip I.did correspond willi the bank but they could not provide me with much inform.tion. Dimick's loss their house. ...____.. Tl1is company Is based In Albany. They did wort< for Deschutes County and had equipment here. About the tI ..... l.tarted making collection calls, thl. bu.lne. had started g. t~ng south. The employ...gave ..... the owners cell phone number Ind I left phone messages that went unretumed. I talked lot he collections depsrtment in Unn County to seiH ~I .,~10 worl<~her to collec1 and she was not th.t 1"""".....!I!d. I tried gamln.!t1lng bank accounts I could find but ....s told there were no funds avaliable'_n but he lo" EXHIBIT -B ----------~~~ ------- ---- UNCOLLI!CTIBLE 2012 MANUFACTUIFlI!D STIFlUCTUIFlI!S ~~_~_ N~ME_ SERIAL YEAR AMOUNT TOTAL COMMENTS FITTERER INC. BRIAN L 153362 2011 $ 43.11 $ 43.11 Abandonded home. Park owner disposed of at the Crook County Landfill. HARTMAN TED C & LORRIE J 153626 2010 $ 61.60 $ 61.60 Home removed. GP building now located here. Status changed to "Inactive" M~LgOD WLLIAM B & MARJORIE L 153478 2010 $ 81.21 $ 81.21 Home destroyed in 2010. Assessor marked as "Cancelled" ------- BRIAN L FITTERER INC 153013 2011 $ 91.n $ 91.n Abandonded home. Park owner disPOSed of at the Crook County Landfill. -. t;ARDeNAS ONTIVEROS RAMIRO 152791 '2010 $ 108.07 $ 108.07 House bumedtothe ground. Assessor's office changed status to "Inactive" "GOVeRNOR MAUREEN 2008 $ 166.75 $ 166.75 Inactive account Home moved to Jefferson County (Warm Springs) with out taxes being collected. I do not know how this happened. ,~ RUTLEDGE TODD 164805 2006 $ 108.59 Todd gave this home to a young couple in La Pine. I spoke to the couple a few lime to have them pay taxes and transfer ownership. 2007 $ 93.52 The}' alwa}'s I1romised to come in but never did. Since then the house has been destroyed. 2008 $ 127.25 2009 $ 132.87 2010 $ 105.69~ $ 567.92 r §'tJN TREE VILLAGE 165550 .. 2008 $ 62.96 Due to death of one of the owners home was abandonded bv the ~rk owners. Cost of the abandonment was $7,458.58. ..~~- 2009 $ 352.69 ------------,.. ~~... - 2010 $ 321.40 $ 737.05 ---_.. ~~----~~~ --------------~~----~~ Home moved from Marsh Road to the dealer lot and then resold and moved to Christmas Valley. OR. Taxes were not paid by dealer when they INTER CITY I-Inll!':INr. 2142<4g ~~~ ~$ JIQ~.~I--____~ imoved the house to Lake County. Inter<;ity Housing is no longer in business. ~~-------- ~~~~-~-'=--~~~~ ~ ~ ~~-~~~~ ~ -~~ ~ , ~~~~ ~ ~ ~ ~~-~~~ , ~~, The Johnson were foreclosed on in 2010 by Greentree. I spoke to Greentree and they sold this home cash basis and will not tell me to whom JOHNSON. JUSTlti ALLEN & 195258+~i ~~~~ 332.38 because that is confidential. The current park manager was not the manager when this home was moved~ She looked for fites on this home, cut the file does not ALYCIDAWN -~~ 2010 ~~9.96~-~~ ~~~:~ exist. There is ----_._-------------~ 2011 $ 203.35 $ 805,69 aOOihef home in this space that is being assessed, FITTERER BRIAN L INC 176322 2000 $ 99.21 Park owner abandoned the home that was beyond repair and took it to the Crook County Landfill. ------- 2001 $ 155.94 ~002 $ 161.88 " ~~~~ -~~ 2003' ~_ 163.40 2004 $ 162.77 -~~ ----- 2005 $ 118.27 2006 $ 104,40 --- 2007 $ 90.48 2008 $ 130.82 i 2009 $ 126.51 ~~~----- ( 2010 $ 101.03 " 2()11 i $ 88.21 $ 1,502.92--------------,~~~ PORTER, THOMAS 1853.01)' 2005 $ 216.38 Thomas Porter is deceased. This mobile home~hasatways ~n~apr()blem.lt was~remOYect from Buck Canyon Road and placed stored on ~~~-~~ 2006 $~~216.18 Plainview Road and then dismantled prior to 2006 when new owners purchased the property. Since trip permits were never issued the home was 2007 $ 227.60 assessed correctly. ,~~~~ ,~~~~ 2008 $254,00-----~~ ---------------------- 2009 $ 261.80 ----------.-~~~ ~~-----,,~~-,~-~-- ~~-1--'-2010 $ 200.24 ~~ 2()11 $ 149.38 $ 1,525.58 -------~~--------- Total Manufactured Structures $ 5691.67! 10f1