Public Education Session August 21, 2008
Introductions • Tax Administrator—Dwane Brinson • Tax Collection Manager—Denette Fitzpatrick • Tax Listing Manager—Mary Yow • Tax Appraisal Manager—Lisa Faulkner
Outline • Session 1 : Methods of payment/Online Bill System etc.—Denette F. • Session 2 : Tax law changes that may affect elderly and/or disabled persons—Mary Y. • 10 minute break • Session 3 : How tax values are established—Lisa F. • Session 4 : How to appeal a value; laws regarding refunds and/or release of a tax bill—Dwane B. • Session 5 : Frequently asked questions—Dwane B. • Questions from the audience
Distribution List… • Send email to receive periodic updates regarding website changes, tax law changes, revaluation information, etc. dbrinson@leecountync.gov
Session 1 Methods of Payment, Online Bill System, etc.
Methods of Payment • A taxpayer may use any of the following mediums for in-person payment of property taxes: – Cash – Personal check – Certified check – Money order
Methods of Payment Cont’d • We also offer other mediums of payment via the internet and telephone: – E-check (online) – Credit card (online and telephone) • For more information on internet and telephone payments, visit www.leecountync.gov
Riding the Wave of Technology • Future possible options: – Allow taxpayers to pay in person via credit/debit card – Pay live on line through website
Due Dates • Due dates/dates of delinquency – Real property/personal property: Due September 1 Delinquent January 6 – Registered motor vehicles: Due the fourth month following initial registration or renewal. Delinquent the fifth month. Blocked the eighth month .
2008 Collection Rate • Overall - 97% • Real/Personal - 98% • Motor Vehicle - 86%
Our Greatest Challenge! • Motor Vehicles
Although motor vehicles have been billed by the same method since 1993, many individuals still do not understand that a motor vehicle bill is due within 30 days of the due date.
How are your tax dollars spent?
Enforced Collection • Once a bill is delinquent, it is subject to enforced collection measures • To stop enforced collection, the bill must be paid in full
Enforced Collection • Garnishments • Bank attachments • Rent garnishments • Levies • Debt Setoff • Foreclosures
Online Bill Inquiry System • The Online Bill Inquiry System was implemented to provide a convenience • One can search most current and prior years’ tax bills • One can see when and if a tax has been paid
Although the ability to access Lee County tax bill information is obtained through the Lee County website, the information is provided through the County tax software provider. The information provided is limited to the current software capability.
Let’s begin our stroll!
Real Estate Inquiry • Options to inquiry on real estate are: – Property Address • House number and street name—do not enter type ex. Rd, St, Ln – Owners Name • Property will be listed by first name on deed – Parcel Identification Number • Do not enter spaces or dashes (NoT cAsE SeNsiTiVe)
Personal Property • Options to inquire on personal property are: – Property Address • House number and street name—do not enter type ex. Rd, St, Ln – Owners Name • Enter all or part of the owner’s name using the format Last, First if applicable. If business listing enter the name of the business. – Property Code • This is the Property ID/PPID listed on your bill. No dashes/spaces (currently only current year bill information is available on line)
Motor Vehicle • It is necessary that the information be entered exactly as it appears on your Motor Vehicle bill. • Owners name and plate number are both required. • Owner’s Name – Last, first, middle • Bill Year – This is the specific year you are inquiring.
Conclusion of Session 1 Questions?
Session 2: Tax Law Changes • Property Tax Homestead Exclusion 105-277.1 • Property Tax Homestead Circuit Breaker 105-277.1B
Property Tax Relief for the Elderly & Permanently Disabled (Homestead) •Who is eligible for this exclusion? •If you are age 65 years or older or totally and permanently disabled you may qualify for this exclusion. •For tax year 2009 the income eligibility limit will be $25,600. •You must be a North Carolina Resident and the property must be your primary residence.
Definition of Disabled • A person is totally and permanently disabled if the person has a physical or mental impairment that substantially precludes him or her from obtaining gainful employment and appears reasonably certain to continue without substantial improvement throughout his of her life. • Documentation is required
Definition of Income • All monies received from every source other than gifts or inheritances received from a spouse, lineal ancestor, or lineal descendant. • For married applicants residing with their spouses, the income of both spouses must be included, whether or not the property is in both names. • Social Security benefits DO count.
Other types of income • Interest earned on bank accounts and investments • IRA distributions • Capital gains • Retirement benefits • Dividends • Wages
If I think I qualify, what should I do? • Obtain an application from the tax office or online at www.leecountync.gov • Complete the application in its entirety • Provide proof of income for verification • Submit the application on or before the deadline of June 1.
What can be used as proof of income? • If you file an income tax return you MUST provide a copy to the tax office. • Social Security Form SSA-1099 • Any other 1099 forms you receive • W2 forms • Any other documentation of income
How much is the exclusion? Effective for 2009 • The amount of the exclusion is one half the value of the total property value OR $25,000; whichever is GREATER. • For example if your property is valued at $120,000, then your exemption would be ½ or $60,000. • Your taxable value would be $60,000.
Continued • If your mobile home is valued at $12,000 and your home site is valued at $15,000. Your total value is $27,000. ½ would be only $13,500. • Your exemption would be for $25,000. • Your taxable value would be $2,000. • Any fees such as Solid waste fees are not excluded.
Circuit Breaker • Same definition as 105-277.1 Property Tax Relief • A taxpayer who qualifies for both types of property tax relief may elect only one type of relief, the exclusion or the circuit breaker. • If property is owned by two or more persons all must qualify for both types of relief and all must elect the circuit breaker for it to be allowed instead of the exclusion.
Continued • Application deadline is June 1 st • Qualifying owner – Must be a North Carolina resident – 65 years of age or totally & permanently disabled – Occupied property as permanent residence for 5 years or more
Income Eligibility Limit • No more than 150% of the exclusion income limit. • For 2009, the exclusion limit will be $25,600 so the circuit breaker income limit will be $38,400. 25,600 x 150% = 38,400
Deferred Amounts • May defer a portion of tax on the residence • Taxes that exceed 4% of income if income is less than homestead exclusion ($25,600) • Taxes that exceed 5% of income if income is equal to or greater than homestead exclusion but less than 150% of homestead exclusion limit ($38,400)
Income/Taxes 18,000 4.00% $720 20,000 4.00% $800 22,000 4.00% $880 24,000 4.00% $960 26,000 5.00% $1300 30,000 5.00% $1500 32,000 5.00% $1600 37,500 5.00% $1875
Circuit Breaker Cont. • The maximum amount of taxes owed is the total of all taxes: – County – Municipalities – Special districts – Does not include fees
For example • If a taxpayer’s income is $30,000 the maximum amount of taxes they would pay would be $1,500. $30,000 x 5.00% = $1,500. • If the taxpayer’s taxes were actually $2,500, then the amount of deferred taxes would be $1,000. $2,500 - $1,500 = $1,000.
What’s the catch? • Unlike 105-277.1, the new circuit breaker, 105- 277.1B is not an exclusion of taxes but a deferment of taxes… • Therefore, 3 previous years of deferred taxes and interest are a lien on the property. • Deferred taxes become due upon a disqualifying event.
Disqualifying Events � Death 1. Unless the owner’s share passes to either a spouse or co-owner, and 2. That individual occupies the residence, and 3. That individual elects to continue deferring the taxes.
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