HomeMy WebLinkAboutOrder 017 - Cancel Uncollectable Pers Prop Taxes�J-cES C
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Deschutes 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 29, 2011
Please see directions for completing this document on the next page.
DATE: June 13, 2011
FROM: Loni Burk Tax/Fnance 541-388-6538
TITLE OF AGENDA ITEM:
Consideration of signature of Order No. 2011-017 Cancelling Uncollectible Personal Property Taxes of
$37,277.91.
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 $37,277.91 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. 2011-017.
ATTENDANCE: Marty Wynne or Loni Burk as necessary.
DISTRIBUTION OF DOCUMENTS:
Copy to Loni Burk, Chief Deputy Tax Collector, Tax Department.
REVIEWED
LEGAL COUNSEL
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order Cancelling Uncollectible Personal
Property Taxes of $37,277.91
*
* ORDER NO. 2011-017
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,
incorporated herein, in the principal amount of $37,277.91.
Dated this of , 20 BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
ATTEST:
TAMMY BANEY, Chair
ANTHONY DeBONE, Vice Chair
Recording Secretary ALAN UNGER, Commissioner
PAGE 1 OF 1- ORDER NO. 2011-017 (06/29/2011)
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Finance Department/Tax Collection
Marty Wynne, Treasurer and Tax Collector
Loni Burk, Deputy Tax Collector
To: Deschutes County Board of County Commissioners
1300 NW Wall St, Suite 203, Bend, OR 97701-1960
[541 ] 388-6540 - Fax [541 ] 385-3248
www.co.deschutes.or.us
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 $37,277.91 in personal property taxes. On a percentage basis, the
$37,277.91 represents .5% (.005) of the personal and manufactured structure taxes levied in the 2010-11 tax
year ($6,462,026.10 and $719,827.71, 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
The $37,277.91 consists of: 1)ten uncollected manufactured structure accounts totaling taxes of $3,287.94 and
2) seventeen uncollectible personal property accounts totaling $33,989.97. Categorically, the items being
cancelled are as follows:
1. Manufactured Structures abandoned under ORS 90.675
(4 accounts) $ 1,965.48
2. Bankruptcies (3 accounts) 1,669.43
3. Dissolved Corporations and other non -bankruptcy
Business failures (14 accounts) 32,320.54
4. Other (6 manufactured structure accounts) 1,322.46
TOTAL (27 accounts) $ 37,277.91
Page 2 of 2
2011 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 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 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 3. 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 environment it is often no
longer prudent to afford a taxpayer as much time to bring their account current as it once was.
2011 Uncollectible Business Personal and Manufacuted Structures _
COMMENTS
Dismantled in 2008. On the assessor's
list to be cancelled as soon as taxes
are written off.
Home dismantled. Assessor to cancel. 1
Home dismantled. Dibavand _
and Lewis moved. The mobile
home was gone prior to the
current owners moving into
the other house located on
this property.
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August of 2008. Dismantled. Assessor
changed to inactive status.
Home abandoned and re -sold for $1.00
Value of home is $4,630.00
Home moved in 2007 to build
a new home. Assessor's
changed to inactive.
This home was removed from the park
when the county enforced a clean up.
Dawn is rumored to have left the area
when she got Into some kind of trouble.
Hughes sold to Coyner many years ago and
Coyner never had home transferred into
his name. Coyner has deceased and the
home was removed from the land prior
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Henkel, Cindy
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'Dibavand,Jeudi
Lewis, Letha
'Kuhlmann, John
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Ito property beim sold. '
1usan left this home many years ago before
another family and nobody ever paid the
taxes. The home abandonment process
(was started along time ago. The home has
now been resold and will be taxed in the
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rHome was abandoned. Mobile was totally
trashed and car and garbage left behind.
Sold for $1.00 and the new owners are
doing the repairs. To be taxed in the future.
Went out of business.
Filed bankruptcy and left
Restaurant closed shortly '
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Closed and Buell moved to New Zealand.
Flied bankruptcy in October 2009. They
left and went to Medford. 1 called another
count' (Lane) to see if they would be
interested in having Misely pursue tax
collection but Shoji's does not owe Lane
County very much money, so it would not
be lucrative to pursue that route.
Closed. I don't have anything else to add. J
Bankrupt. We received $20,664.68 in
April. All we will receive.
No longer in business. Everytime
I tried calling Mr Aldrich, his telephone
would ring busy. Never responded to
correspondence I would send. House fore-
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1Kennedy, Susan
Canada, Hiedi
'Business Personal Property
'Paradise Suntan Center Inc
Deep ventures LLC
1Deep Restaurant
'Curve Enterprises Inc 1
Shoji's Inc
'Shoji's of Bend
[Robles Inc EI Rancho Grande 11
1Gottschalks Inc 1-102 1
'Creative Outdoor Landscape
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Business is closed. That is about all I know.
1The county took the building back and also
the personal property. See attached
documentation regarding non-assesslble
prior to July 1 lien date.
Left for Wyoming. According to the landlord
of the building they loaded everything up in a
huge trailer.
Forced out of business after selling drugs
through the drive-thru window.
Closed in April 2009. I have searched the
internet trying to find the owner. Foud
a person in Florida with same name but
it turned out not to be the same Tammy
Leonard.
Closed in 2008. Home was foreclosed on.
Assessor's office shows account as '
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This restaurant changed hands a few times.
There was problems with who is suppose to
pay the taxes on the equipment.
Bryan and Tammy Leonard owned this
company. I have searched on the Internet
and found a Tammy Leonard in Nevada. I
called her and discovered it was different
Tammy Leonard. Their home was foreclosed
on and purchased by another party. I called
the new owner asking for the whereabouts
of the Leonards. She said they divorced and
he Is in Washington but does not know
where Tammy is.
Dave Hamilton is deceased.His wife tried
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ICastaneda, Damian
Rigoberto's Taco Shop f13
MCD LLC The Feed Barn
Higher Level Construction
Old World Tile & Stone 1
Management Resources of Bend
'Rustic River Restaurant & Lounge
IGradeway LLC
'Dave Hamilton Chev/Olds
Ito operate the business after his passing. Shortly 1
'occurred and some dealerships were not
able to renew their franchises. GMAC took
all of the Hamilton inventory, sold the cars
then made Hamilton reimburse the bank
1(which was the standard practice)
for the balances owing. Nancy did not have
the cash to pay-off the loans, so the bank
'foreclosed on all of her real estate with the
'exception of her two homes in Redmond that
!she is under water in and in which her 85 -year
jold mom lives in one and her disabled daughter
lin the other. All the personal property was
(auctioned off (we were not notified) and the
'remaining proceeds from the auction went
to the IRS, and other misc. bills. She lives on
!social security and does not have any other
!source of Income or cash.
This business had been a collection problem
since it started being assessed in 2003. 2003
was the last time they paid their taxes in
full. Mr. Deleone hired an attorney to
have his personal property removed. t
corresponded with the attorney that taxes
need to be paid and that Mr. Deleone needs
to provide dispostion records and he never
did. The last address I had for Mr. Deleone
was on Harvest Ave. That letter was
returned with a note saying that he no longer
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and Business Personal Property
Cancellation of Taxes
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1Deleone, Michael & Dominic
1Northwest Xtreme Coating 1
(Total Business Personal Property 1
1Total Manufactured Structure