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NCACC Legislative Alerts July 26, 2006 Elimination of H1779 would cost counties an estimated $45 million per year in uncollected taxes A bill that would repeal H1779 was moved Tuesday evening from the House Finance Committee to the House Rules Committee by Rules Chairman Rep. Nelson Cole, who is leading an attempt to strip the new law of its intent to boost county motor vehicle property tax collections. H1779 (Rep. Dale Folwell – Forsyth) accomplished an NCACC legislative goal when it was passed unanimously during the 2005 session. It would enable counties to improve the collection of property taxes on motor vehicles by requiring that the property taxes be paid at the time of purchase instead of “in arrears.” This new system could result in approximately $45 million in uncollected motor vehicle property tax revenues for counties. The new method of collections would be phased in over a three-year period for full implementation by July 1, 2009, and the Association, through the guidance of Assistant General Counsel Paul Meyer, has been working with all parties involved, including the Division of Motor Vehicles and automobile dealers, to address any concerns about the implementation. The NCACC is asking its county officials to contact their representatives and senators immediately and voice their concerns about S600 and this unwarranted intrusion into local property tax revenues.
July 11, 2006 Elimination of H1779 would cost counties an estimated $45 million per year in uncollected taxes A majority of the House Rules Committee on July 11 voted to repeal H1779 (Session Law 2005-294), which was passed in 2005. The effort to repeal H1779 was led by Rep. Nelson Cole (Rockingham). The bill, which accomplished an Association legislative goal, enables counties to improve the collection of property taxes on motor vehicles by requiring that the property taxes be paid at the time of purchase instead of in arrears. This law was to be phased in by July 1, 2009, and would have resulted in the collection of approximately $45 million in uncollected motor vehicle property tax revenues for counties. A feasibility report was generated by the DOT, counties, the N.C. Tax Assessors Association, the N.C. Tax Collectors Association, the N.C. Automobile Dealers Association, the N.C. Truckers’ Association and DMV tag agents that outlines the implementation of the legislation. The Association, through the guidance of Assistant General Counsel Paul Meyer, has been working with all parties involved, including other state agencies and private parties, to address any concerns about the implementation. This legislation, when fully implemented, would likely result in the collection of an additional $45 million in uncollected motor vehicle property taxes for counties. The House Rules Committee stripped an unrelated Senate bill (S600) to mount this attack on county revenues. We are uncertain if the bill may be immediately referred to the House floor for a vote or if it will be sent to the House Finance Committee. If the House passes the bill, it would then be sent to the Senate for concurrence. Please contact your legislators immediately to protect this unwarranted intrusion into local property tax revenues and oppose the rewrite of S600. The final vote on this bill in both chambers last year was unanimous. June 23, 2006
The House Transportation Committee amended H1827 (“DOT General Contractor License Exceptions” – Rep. Nelson Cole, Rockingham) to eliminate roughly 25 percent of the motor vehicle property tax base, resulting in approximately a $108.3 million revenue loss for counties and $144 million total loss for local governments. The bill as amended would require tax assessors to value motor vehicles on wholesale - rather than fair market - value. In addition, local governments would lose an undetermined amount of property tax revenue from public utilities, who own motor vehicle fleets. H1827 has been re-referred to the House Finance Committee. |