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SL 362 Project Update Refunds and Discoveries

SL 362 Project Update Refunds and Discoveries. Presented to Mecklenburg Board of County Commissioners July 1, 2014. Proverb for the Day. Juggling Chainsaws is not a long-term professional career option…….. Ken Joyner. Juggling Chainsaws is not a long-term career.

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SL 362 Project Update Refunds and Discoveries

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  1. SL 362 Project UpdateRefunds and Discoveries Presented to Mecklenburg Board of County Commissioners July 1, 2014

  2. Proverb for the Day Juggling Chainsaws is not a long-term professional career option…….. • Ken Joyner

  3. Juggling Chainsaws is not a long-term career

  4. CAMA/Appraisal is a perfect science?

  5. Additional Proverb for the Day This stuff is really hard…. • Ken Joyner

  6. SL 362 Revaluation Review Project • What is SL 362? • Enacted in July 2013 • Section 1 identifies the counties that are required to follow SL 362 • Section 2 identifies the requirements of SL 362 • (i) Conduct a reappraisal within 18 months • (ii) have a qualified appraisal company conduct a review of all values in the county by neighborhood • Option chosen by Mecklenburg County • (ii) Pearson Appraisal Services MecklenburgCountyNC.gov

  7. SL 362 Revaluation Review ProjectRefunds • SL 362, Section 2 (1) Adj. to parcels with errors that resulted in the parcels having a significantly overstated value • Refunds for SL362 • Statutory changes • Software changes • Procedural changes MecklenburgCountyNC.gov

  8. SL 362 Revaluation Review ProjectRefunds • SL 362, Section 2 (1) Adj. to parcels with errors that resulted in the parcels having a significantly overstated value • Process Timeline • After BOCC approval, notices are mailed • 30 days to appeal (we allow some extra time for mail to arrive) • If no appeal, refund process begins (add ’l 30 – 45 days) MecklenburgCountyNC.gov

  9. SL 362 Revaluation Review ProjectRefunds • Who gets the refund? • The owner of record on the date the taxes are paid. • What is the interest rate paid on the refunds? • 5% • How many have been mailed to date? • As of September 24th, 83,762 • How many refunds have been generated by SL 362 to date? • As of September 24th there are 161,530 • Historical refunds counts (annually) • 2010-11 630 • 2011-12 5,568 • 2012-13 5,406 • 2013-14 (SL 362 only to date) 161,530 MecklenburgCountyNC.gov

  10. SL 362 Revaluation Review ProjectRefunds • What is the total amount refunded to date? • As of September 24th, $9,162,391.12 including interest • What is the total amount of refunds remaining? • As of September 24th, $8,673,148.95 including interest MecklenburgCountyNC.gov

  11. SL 362 Revaluation Review ProjectRefunds • Automation process beginning to catch up with the project needs • As of Sept 24th CAO has processed 84% of the refunds MecklenburgCountyNC.gov

  12. SL 362 Revaluation Review ProjectDiscoveries • SL 362, Section 2 (2) Adj. to parcels with errors that resulted in the parcels having a significantly understated value • Discoveries for SL362 • Statutory changes • Software changes • Procedural changes MecklenburgCountyNC.gov

  13. SL 362 Revaluation Review ProjectDiscoveries • How many discovery bills have been generated by SL 362? • As of September 24th, 34,073 • What is the dollar amount of discovery bills? • The total of all discovery bills to date is estimated at over $5,000,000 • Note that there is no penalty included on discovery bills for the 2011-2014 years MecklenburgCountyNC.gov

  14. SL 362 Revaluation Review ProjectDiscoveries • Who is responsible for the discovery bills? • Current owner of record • Why the current owner? • NCGS 105-312 (d) directs the assessor to mail to current owner. Effectively it is because the tax lien goes with the property. • Like refunds the volume of discovery bills is a significant increase over previous years. • Last year we did 1,373 discoveries MecklenburgCountyNC.gov

  15. SL 362 Revaluation Review ProjectAppeals • BER and PTC Issues • PTC appeals in 2013 – over 2,300 parcels • PTC appeals in 2014 – 124 parcels remaining (now under 100 cases) • BER appeals for SL362 – over 1,863 to date MecklenburgCountyNC.gov

  16. SL 362 Revaluation Review ProjectAppeals • Financial Issues • Appeals were not included in the original scope of work for Pearson Appraisal Services • Original contract is for $3,892,000 • We have added $ to the contract to pay for the appeals • Based upon PTC cases worked (approx. 2,000), current appeals (1,863 unique parcels), and estimates for the remainder of the project MecklenburgCountyNC.gov

  17. SL 362 Revaluation Review ProjectLessons Learned • REAPPRAISAL • Field Canvassing is important • 2011 Reappraisal – Publically discussed that it had been 17 years since last visited • You must physically walk your properties to ensure accuracy • IAAO Standards state once every six years • Don’t rely items that are not completed • Appeals module wasn’t ready • Communication is crucial • No response speaks volumes, just not the message you want conveyed MecklenburgCountyNC.gov

  18. SL 362 Revaluation Review ProjectLessons Learned • SESSION LAW 2013-362 • No one cares that it hasn’t ever been done before • Refunds • Start-up periods • Everyone wants their property to be completed early in the process • 18 month project with18 monthly reports • Communication is crucial • Citizens • Elected Officials • County Administration • Media • Contractor • CAMA/Software provider MecklenburgCountyNC.gov

  19. SL 362 Revaluation Review ProjectLessons Learned • SESSION LAW 2013-362 • Multiple Years bring on new issues and problems • Data Entry/Notices • Refunds • Appeals • Workflow/Business Processes are going to change • Think about the process prior to starting • Determine who is going to handle what processes • Include you CAMA/software provider • Refunds • Manage expectations • Proactively work with Legislature on minimum refund amount MecklenburgCountyNC.gov

  20. SL 362 Revaluation Review ProjectLessons Learned • SESSION LAW 2013-362 • Define role and chain of command with the contractor • You do not want line staff making decisions on the fly • Space was a big issue for us • 40-50 contractor’s for 18+ months • Know the contract and who is responsible for each item • Cost can escalate quickly • You will not think of everything • Stay ready for change • If it happens once it will happen again MecklenburgCountyNC.gov

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