HomeMy WebLinkAboutOrder 047 - Cancel Uncollectable 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 September 22, 2010
Please see directions for completing this document on the next page.
DATE: September 9, 2010.
FROM: Loni Burk Tax/Finance 388-6538
TITLE OF AGENDA ITEM:
Consideration of signature of Order No. 2010-47 Cancelling Uncollectable Personal Property Taxes of
$49,139.64.
PUBLIC HEARING ON THIS DATE? No
BACKGROUND AND POLICY IMPLICATIONS:
Personal property taxes are considered to be uncollectable 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 $49,139.64 in taxes formalizes the existing fiscal reality of the uncollectible
accounts. It saves the county administrative costs to not have to continue showing the taxes on the rolls
and to continue to attempt collection efforts for taxes that cannot be collected. Therefore, although
those upaid 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. 2010-047.
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 Uncollectable Personal
Property Taxes of $49,139.64.
*
ORDER NO. 2010-047
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, 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 personal property taxes described in Exhibit "A" attached hereto and, by this reference,
incorporated herein, in the principal amount of' $49,139.64.
Dated this of , 2010 BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
ATTEST:
DENNIS R. LUKE, Chair
ALAN UNGER, Vice Chair
Recording Secretary TAMMY BANEY, Commissioner
PAGE 1 OF 1- ORDER NO. 2010- 047 (09/08/2010)
Finance Department/Tax Collection
Marty Wynne, Treasurer and Tax Collector
David Lilley, Deputy Tax Collector
1300 NW Wall St, Suite 200, Bend, OR 97701-1960
(541) 388-6540 - Fax (541) 385-3248
www.co.deschutes.on 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 $49,139.64 in personal property taxes. On a percentage basis, the
$49,139.64 represents .6% (.006) of the personal and manufactured structure taxes levied in the 2009-10 tax
year ($7,041,864.43 and $825,831.46, 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
The $49,139.64 consists of: 1) thirteen uncollected manufactured structure accounts totaling taxes of $5,036.48
and 2) twenty three uncollectible personal property accounts totaling $44,103.16. Categorically, the items being
cancelled are as follows:
1. Manufactured Structures abandoned under ORS 90.675
(2 accounts) $ 741.22
2 Bankruptcies (4 accounts) 8,817.74
3. Dissolved Corporations and other non -bankruptcy
Business failures (19 accounts) 35,285.42
4. Other (11 manufactured structure accounts)
TOTAL (36 accounts)
4,295.26
$ 49,139.64
Pursuant to Oregon law, Laurie Craghead, Assistant Legal Counsel, has reviewed the amounts to be cancelled
and agrees that these accounts are not collectible.
Page 2 of 2
2010 Personal Property Tax
Cancellations
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.
COMMENTS
This mobile home was set up several years ago in
Ed's name. In the Lois system, this home is in the
name of Dorflinger and shows location at 19919 Ashwood
Drive in Bend, OR. Ed has never made a payment on the
[taxes and I am not even sure he is in the area. The home
is no longer at 20050 Romaine Village Way, and the _
assessor's office is not sure where the home is. Moved
Abandoned home the .ark destro ed in 2008. Home has _
been removed from the assessment rolls.
Home bought and moved to Idaho, June of 2009.
Home was moved to Crook County in 2006. I did contact the
Standley's twice, regarding the taxes and they were not
very nice people; therefore, I have not tried again. Home has
been removed from the Assessmnt rolls.
This home is located in Tioqa MH Park, which is off of
Deschutes Market across from the Funny Farm. It is a park
that is difficult to assess. The home was removed from the
assessment roll in 2008. Kenneth Luckman is impossible
to talk to. The taxes were less than 70.00 each year. He
has not paid since 1998.March 2007 a $183,841.64 lien was filed
by the State of Oregon Dept. of Consumer Affairs against Kenneth
Luckman.
The current owner of the real property called and said the
home had been removed prior to him purchasing the land.
He does not have any information on what happened to it.
Home was abandoned. Cost of abandonment exceeded
salesQice.
Dismantled and removed from property. New home is there.
The real property is in name of Burke, who actually was
third party purchased of the land.
Moved to Warm Springs, April 2006.
Removed from assessment roll.
Home was demolished when park was purchased.
Home has been removed from assessment roll.
AL PROPERTY CANCELLATION LIST
XES 2009-10
AMOUNT TOTAL
j $ 91.41
$ 195.65
$ 191.75
$ 135.00
$ 136.16
$ 137.35
$ 123.68 I $ 2,130.50
$ 164.32
$ 149.55
$ 149.41
$ 115.98 $ 579.26
I
$ 34.70I
�V
$ 85.17
$ 99.46 $ 279.88
$ 117.41 $ 117.41 f
$ 104.59
$ 104.59
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DESCHUTES COUNTY PROPOSED PERSON
JSERIAL #
193595
200702
174458
167249
UNCOLLECTIBLE PER
MANUFACTURED STRUCTURES
NAME
ONIEL, ED
SUCHOCKI, ANTHONY & BERTHA
MACPHAIL,NEALE
STANDLEY, MIKE & DORRIS
ILUCKMAN, KENNETH OSCAR
IBARR, CARRIE
IMARCUM, JOHN
10ENDEJAS, ERNESTINA & JOSE
(Home was demolished. Mr. Berry is deceased. Home has been
I removed from assessment roll.
I Home moved to Chrismas Valley by Mary Cecil. Intent to dismantle
unit. _ Removed from assessment roll.
Home destroyed in 2007. Removed from assessment
0
$ 85.29
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$ 25.48
$ 5,036.48
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$ 85.29
$ 76.05
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strut ures
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2009
2007
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187524
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IaCUNL,tb, JFItKILL J
RODRIGUES, FELIPE 8
Total Uncollectible manufactured
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1 am not really sure of the function of this business or even if
it has been in existence for a Ion. time. All the
information I have obtained to use for collection
j has been vague. The owner, Thomas Reynolds, owed the
j landlord back rent. I have called the business several
times and nobody would ever answer. I went by the location
a couple of times and looked in the window and the glace
looked occupied but in disarray. I sent correspondence
to his business location and to gentleman named,
'Thomas Reynolds, but not sure it's the same Thomas.
This practice was with Dr. Gilbert Lee. Mr. Lee was found
i guilty of misconduct with his female patients and is in
prison. His wife later filed chapter 13.
Owned by the same person as Reytech. Thomas Reynolds.
Closed business a few years ago. Gave proof to assessor's office
regarding equipment disposal. Assessor changed account status
to inactive in 2008. I talked to both Scott and his wife a couple of
years ago and Scott was attending COCC and their only
(source of income was his wife's job and they have kids to feed.
Very old account that has never been written off. The account
shows as cancelled, but I can't figure out why it was
never written off.
Rick says he has not had any personal property for two
years. Did not say where it went. He lost his home and
then moved to the Salem -area. He filed chapter 13 in July
2009. I have sent him statements and notes requestinp
he call me, but he doesn't.
Prior owners' reposssessed the business and took the equipment
to Salem to be auctioned off. Lost tens of thousands in the
deal. Moved to California.
No longer in business. Assessor removed account. Mr. Martin
has over $90,000 in federal, state and employment liens. Horne
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2
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don't have any history an this account. The account
has been cancelled by the assessor's office and
David Wisdom's home was foreclosed on.
Paul closed his business, moved to Jasper. OR to run a
7thDay Adventist School. After
moving to Jasper, he did send in a few payments. but then
he stopped. 1 do not know where the equipment went, may-
oe the landlord kept it for back rent?
don't really have much to say about this account. Other
:hen sent statements, I have not had any real
:ontact with the Ditmores.
$ 11,774.82
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$ 2,356.05
$ 1,703.97
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$ 1,563.89
$ 1,305.65
$ 3,902.49
$ 3,898.44
$ 3,973.89
$ 1,462.51
$ 1.490.79
$ 1,499.92
$ 205.98
$ 717.98
$ 858.04
$ 857.14
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$ 1,214.64
$ 1,820.04
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$ 536.64
$ 802.86
$ 1,016.55
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$ 774.44
$ 789.45
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$ 247.38 1
$ 257.53 j
$ 257.16
$ 254.40
2006
2007
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2006
2007
2001
2007
2008
2009
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2009
2007
2008
2008
2003
2004
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Business Personal Property
REYTECH CORPORATION
PONDEROSA MEDICAL PC
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!CAMPBELL, SCOTT
1
LULUN SBRVICES INC
BOB'S BURGER EXPRESS
RICK'S LLC
L & J'S JAVA INVESTMENTS INC
JITTERS COFFEE COMPANY
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rUTA I UK LU:OGIRL FITNESS
IDEDERER. PAUL
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DITMORE, SKIP & KIM
LITTLb JOHNS PORTABLE TOILET SER
Lynn Callahan who started this business is deceased. His
son took over after Lynn's death. Has struggled keeping
it in operation. He went to Alaska to work and promised
to come in and pay when he would come to town. Never
did and I have lost all contact with him.
.Excavation company that went out of business. Removed
(from tax rolls. Filed bankruptcy; Home foreclosed on.
Store closed in 2007. New business in this building.
1 have sent correspondence to Pamela at
'a few different addresses, but nothing is responded to.
TeleEhone numbers are no longer in service.
Closed in 2008. Have sent corres•ondence to different addresses
to get mail sent back. Phone numbers no longer in service.
Removed from assessment roll.
I am not sure about this business. She did call once and
was adamant about not paying taxes and she hasn't. She
fled bankruptcy and the home she has in also in title
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3
Curtis left the area and went to Eugene. I found a valid
mailing address for him at one point and that transpired
into him coming in to the office regarding payment. He
'was very upset and explained that he was so broke he
could not pay. I do not know what happened to him
after that, because I have not been able to locate him.
2009. See letter dated 7-22-2010.
Economic downturn forced out of business. Homes have been
foreclosed on. Unable to locate. Removed from assessment roll.
Lost business, all material possession. Administrative
dissolution 5-2009. Removed from assessment roll
for 2009.
Ji Youg does not understand English. His lease was
terminated when Sunriver Village was purchased by First
Premier in Salem. First Premier disposed of equipment
because it was moldy and had rats living in it. Youg moved
to Portland.
Small balance that needs to be removed.
Left Bend River Mall when mall was bought buy new
owners. Lease was too high. Statements get returned.
1 $ 1,282.09
1 $ 1,249.87
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$ 1,025.72
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69
$ 903.08
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$ 681.52
$ 455.55
$ 333.77
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$ 659.98
$ 589.89
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$ 481.69
$ 487.47
$ 447.19
$ 455.89
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69
$ 681.52
$ 182.85
$ 272.70
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$ 331.80
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1 2008
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2008
2009
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2008
2007
2007
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218305
218785
260535
1
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183031
CALLAHAN'S BACKHOE DUMP
TRK SERV LLC
MARTELL, TYNON
TYNON MARTELL EXCAVATION
HITCHIN POST GENERAL STORE INC
THE
SMITH ROCK RIVER BOATS INC
THE RIVERMAN
COIIIL
rAKKIJri, AKA
UPPER TERRACE CAFE 8 WINE SHOP
CERTIFIED FINANCIAL SERVICES
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LtrD AU! O REPAIR
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CITYWIDE MORTGAGE INC
WELCOME TO M
BRUYN LOG 8 TIMBER INC
BRUYN LOG 8 TIMBER
JI,YOUG
CHEN'S GARDEN RESTAURANT OF
SUNRIVER
GROSSFIELD, ROBERT
NORTHWEST THEATRICAL
WHEELER, WILLIAM CB
CHECKERS ICE CREAM YOGURT
TOTAL
PERSONAL PROP TOTAL UNCOLLECTIBLE
1
1
1
IV I AL MANUKAOI URE AND
PERSONAL PROPERTY PROPOSED
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