Property Tax Administration. Presented May 3, 2016

Transcription

1 Property Tax Administration Presented May 3, 2016

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3 Assessor Property classification Property valuation Distribution of valuation notices to taxpayers Auditor/Treasurer Calculation of proposed and final tax rates Preparation & distribution of truth-in-taxation notices to taxpayers Preparation & distribution of property tax statements to taxpayers Property tax payment collections Settlement & distribution of property tax receipts to taxing jurisdictions Delinquency and forfeiture administration Tax abatement/adjustment processing Mandatory reporting (i.e. Abstract of Tax Lists, Auditor s Certificates, TIF) Economic Development Programs Senior Citizen Property Tax Deferral Program Minnesota Department of Revenue Oversight and assistance 3

4 Assessment Year 2015 Assessment year 2015 Taxes Payable 2016 Taxes Payable Jan Assessment date (Jan 2nd) Mar Valuation notices mailed Apr Local boards of appeal and equalization Jun County board of appeal and equalization; state board of equalization Jul Certification of state aid amounts Sep Truth-in-taxation levy certifications (15th, 30th) Nov Truth-in-taxation notices mailed Dec Final budget hearings; public hearings; final levy certifications (28th) Jan Compute tax rates Assessment date (Jan 2nd) Mar R & P property tax statements mailed Valuation notices mailed Apr Local boards of appeal and equalization May 1st half tax payments due (15th); 7-day settlement Jun 14-day settlement County board of appeal and equalization; state board of equalization Jul 1st half state aid payments made (20th); final 1st half settlement; manufactured home property tax statements mailed Certification of state aid amounts Aug 1st half manufactured home tax payments due (31st) Sep Truth-in-taxation levy certifications (15th, 30th) Oct 2nd half tax payments due - non-ag (15th); 7-day settlement 2nd half tax payments due - ag & manufactured home (15th); 14-day Nov settlement Truth-in-taxation notices mailed Dec 2nd half state aid payments made (26th); final 2nd half settlement Final budget hearings; public hearings; final levy certifications (28th) Jan Final settlement Compute tax rates Mar R & P property tax statements mailed May 1st half tax payments due (15th); 7-day settlement Jun 14-day settlement Jul 1st half state aid payments made (20th); final 1st half settlement; manufactured home property tax statements mailed Aug 1st half manufactured home tax payments due (31st) Oct 2nd half tax payments due - non-ag (15th); 7-day settlement Nov 2nd half tax payments due - ag & manufactured home (15th); 14-day settlement Dec 2nd half state aid payments made (26th); final 2nd half settlement 4 Source: House Research Department and House Fiscal Analysis Department Presentation to the House Committee on Taxes Modified Version

5 Estimated Market Value (sale price of property on the open market, determined by Assessor) Green Acres Deferment (agricultural properties) Rural Preserves Deferment (class 2b rural vacant land) Open Space Deferment (i.e. golf, skiing, archery properties) Aggregate Resource Preservation Deferment (properties containing commercial aggregate deposits) Platted Vacant Land Exclusion (excludes increases in property value associated with platting property) This Old House Exclusion (improvements to older homestead property) This Old Business Exclusion (improvements to older business properties) Disabled Veterans Exclusion (ease burdens of war for disabled veterans) Mold Damage Reduction (homestead properties damaged by mold) Market Value Prior to Homestead Market Value Exclusion ( ) Homestead Market Value Exclusion (homestead property 1a (residential), 1b (blind/disabled), 2a HGA (ag) Taxable Market Value (11-12) - amount of value used in calculating taxes Deferment postpone payment of taxes Exclusion excludes property value from taxation Reduction reduces property value 5

6 Minnesota s classified property tax system is complex Each property type has a class rate specified in statute for the use classification of the property, which allows properties to be taxed at different levels State general tax and school district operating referendum levies apply to some types of property, but not others Two tax bases in Minnesota Net Tax Capacity Referendum Market Value 6

7 Taxable Market Value Classification Rate Net Tax Capacity Local levies = service costs less non-property tax revenue for local units of government Local levies are levied on net tax capacity All property is subject to local levies 7

8 8 Source: MN Dept of Revenue Tax Calculation Course For Taxes Payable 2016

9 9 Source: House Research Department and House Fiscal Analysis Department Presentation to the House Committee on Taxes Modified Version

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11 Homestead properties: Taxable Market Value Homestead Market Value Exclusion Referendum Market Value Referendum levies are used for operating or debt purposes and are approved by the voters Referendum levies are levied on referendum market value (however, school debt levies are based on net tax capacity, whether voter approved or not) Certain property types are not subject to referendum levies: 11 Source: MN Dept of Revenue Tax Calculation Course For Taxes Payable 2016

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13 Levy Certifications Value from Assessors Cross County Values & Rates Tax Rate Calculation 13

14 Rice County certifies values to: Scott County SD 721 Steele County SD 763 Waseca County SD 829 Le Sueur County SD 2143, SD 2905 Goodhue County SD 2172, City of Dennison Rice County certifies rates to: Goodhue County SD 656, SD 659 Dakota County SD 659, City of Northfield Rice County receives certified values from: Goodhue County SD 656, SD 659 Dakota County SD 659, City of Northfield Rice County receives certified rates from: Scott County SD 721 Steele County SD 763 Waseca County SD 829 Le Sueur County SD 2143, SD 2905 Goodhue County SD 2172, City of Dennison 14

15 Local Tax Capacity Rate Property Tax Revenue Needed (local levies) Local Referendum Market Value Rate Property Tax Revenue Needed (referendum levies) Total Tax Capacity Total Referendum Market Value 15

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17 NTC Tax RMV Tax State Tax Net Tax Credits 17

18 Estimated Market Value (EMV) Tax Rates - Northfield Township - SD a HGA EMV $ 183,700 NTC Rate % 2a Remainder EMV $ 9,300 RMV Rate % Total EMV $ 193,000 Homestead Market Value Exclusion (HMVE) NTC 1,677 2a HGA EMV $ 183,700 NTC Rate x % - $ 76,000 NTC Tax $ 1, $ 107,700 RMV $ 183,700 x 9% RMV Rate x % Exclusion reduction (9% of MV over $76,000) $ 9,693 RMV Tax $ Max exclusion $ 30,400 State Tax $ - - $ 9,693 Total Tax Before Credits $ 1, $ 20,707 Agricultural Homestead Market Value Credit (AHMVC) HMVE rounded $ 20,700 2a Remainder MV $ 9,300 Taxable Market Value (TMV) x 0.30% 2a HGA TMV (EMV - HMVE) $ 163,000 Total AHMVC $ a Remainder TMV $ 9,300 Net Tax After Credits $ 1, Total TMV $ 172,300 Class Rates 2a HGA 1.00% 2a Remainder 0.50% Net Tax Capacity (NTC) 2a HGA NTC $ 163,000 x 1.00% 1,630 2a Remainder NTC $ 9,300 x 0.50% $ 47 Total NTC 1,677 Referendum Market Value (RMV) RMV $ 183,700 Tax 18

19 A process to encourage public participation in the property tax system Local governments are required to adopt a proposed levy in September for the upcoming year Parcel-specific notices of proposed taxes based on the proposed levies are distributed in November After distribution of notices, local governments (cities with a population over 500, counties, school districts, Metropolitan Council, Metropolitan Airports Commission and Metropolitan Mosquito Control District ) are required to hold a public hearing to review budget and tax issues and to receive comments from the public prior to adopting final levies Final levies certified by a town or special taxing district (except a metropolitan special taxing district) may be the same as, less than or equal to its proposed levy Final levies certified by a county, school district, city or metropolitan special taxing district cannot exceed its proposed levy except as the result of allowable add-on levies, typically approved by voters in referendum elections 19

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22 The proposed TNT notice is an estimate so the final tax amount on a parcel may differ Referendums may pass, increasing the tax Special assessments and other charges may be billed on the tax statement Taxing jurisdictions may lower their tax levy Property owners may file for homestead if they own and occupy their homes by December 1 st and apply by December 15th 22

23 Changes in a property s market value (i.e. improvements generally increase market value) Market values of other properties (i.e. if a property value increases more than other properties, taxes will increase; if a property value increases less than other properties, taxes will decrease) Changes in tax base (i.e. new construction increases a taxing jurisdiction s base and spreads property taxes between more property owners, lowering rates) Changes in state property tax rates Changes in state classification rates (i.e. a change in classification rates requires a change in tax rates to raise the same amount of money) Changes in a taxing jurisdiction s levy Changes in special assessments (i.e. improvements benefiting a property are added to a tax bill) Exclusions and credits 23

24 27,581 statements mailed 15,000+ residential homesteads with average 2016 taxes of $2,225 $79.576M total tax (increase of 5% over 2015) including special assessments of $2.840M (decrease of 4% over 2015) $ M in homestead exclusions (decrease of 1% over 2015) 2016 Taxes Payable Statistics $156,900 Median Estimated Market Value (increase of 3% over 2015) 0.4% increase in final tax amount over proposed tax amount $137,500 Median Taxable Market Value (increase of 3% over 2015) 24

25 County Special Taxing Districts City/Town (including TIF) School State County Special Taxing Districts City/Town (including TIF) School State Pay 2016 $23M $900K $22M $26M $6M Average Share 27% 2% 28% 35% 9% Change over Pay % 2% 6% 3% -1% 2016 Levy Total: $77M 25

26 26 Levy of $22,817,040 for 2016, increase of 6.9% over 2015

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28 Assessed 2014 Payable 2015 Assessed 2015 Payable 2016 % Change in % Change in Estimated Market Value Taxable Market Value Estimated Market Value Taxable Market Value EMV TMV Dennison $ 1,430,100 $ 1,378,600 $ 1,490,300 $ 1,461, % 6.0% Dundas $ 127,855,400 $ 116,913,100 $ 128,443,400 $ 117,449, % 0.5% Faribault $ 1,221,534,600 $ 1,090,176,900 $ 1,249,859,200 $ 1,118,578, % 2.6% Lonsdale $ 261,401,900 $ 235,044,900 $ 272,235,000 $ 245,222, % 4.3% Morristown $ 41,528,300 $ 33,977,100 $ 42,671,200 $ 35,173, % 3.5% Nerstrand $ 21,231,400 $ 18,824,400 $ 21,104,800 $ 18,673, % -0.8% Northfield $ 1,092,127,300 $ 1,014,397,300 $ 1,119,413,300 $ 1,041,974, % 2.7% All Townships $ 2,949,720,600 $ 2,851,188,500 $ 2,975,650,500 $ 2,878,243, % 0.9% Total Rice County $ 5,716,829,600 $ 5,361,900,800 $ 5,810,867,700 $ 5,456,776, % 1.8% Assessed 2006 Payable 2007 Assessed 2015 Payable 2016 % Change in % Change in Estimated Market Value Taxable Market Value Estimated Market Value Taxable Market Value EMV TMV Dennison $ 1,529,700 $ 1,367,900 $ 1,490,300 $ 1,461, % 6.9% Dundas $ 105,918,300 $ 92,418,500 $ 128,443,400 $ 117,449, % 27.1% Faribault $ 1,338,282,800 $ 1,306,299,700 $ 1,249,859,200 $ 1,118,578, % -14.4% Lonsdale $ 295,591,900 $ 259,993,300 $ 272,235,000 $ 245,222, % -5.7% Morristown $ 48,386,400 $ 46,156,700 $ 42,671,200 $ 35,173, % -23.8% Nerstrand $ 22,510,000 $ 20,266,400 $ 21,104,800 $ 18,673, % -7.9% Northfield $ 1,214,604,000 $ 1,192,708,800 $ 1,119,413,300 $ 1,041,974, % -12.6% All Townships $ 3,213,286,900 $ 2,509,768,300 $ 2,975,650,500 $ 2,878,243, % 14.7% Total Rice County $ 6,240,110,000 $ 5,428,979,600 $ 5,810,867,700 $ 5,456,776, % 0.5% 28

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31 Payable Year 2015 Percentage of Total County Net Tax Net Tax Taxpayer Type of Business Capacity Rank* Capacity Northern States Pow er Co Utilities $ 1,038, % Northern Natural Gas Co Utilities 803, MOM Brands Company Breakfast Cereal 368, Walmart Retail 240, McLane Company, Inc. Food distributor 184, Allina Health System Medical 187, James & Linda Saw yer Commercial 162, Menard, Inc. Home improvement 152, Community Resource Bank Banking 121, Minnesota Municipal Pow er Agency Utilities 134, Dayton Hudson Corporation Retail Hayzin LLC Commercial Jerome Foods Turkey processing All Others 52,051, $ 55,445, % *Note: Rank based on net tax; excludes special assessments 31

32 Convenience Fee Structure: Online/Phone E-Check/ACH: $1.50 Online/Phone Credit Card: 2.35% of tax amount, $1.95 minimum 32 Note: All Collections

33 $76M in 2015 taxes across all tax authorities 33 Tax Authority Outstanding 2015 Taxes Payable % Collected as of 3/31/2016 as of 3/31/2016 RICE COUNTY $ 114, % RICE COUNTY HRA $ % CITY OF DENNISON $ % CITY OF DUNDAS $ 4, % CITY OF FARIBAULT $ 47, % FARIBAULT EDA $ 1, % FARIBAULT HRA $ 1, % CITY OF LONSDALE $ 18, % CITY OF MORRISTOWN $ 5, % CITY OF NERSTRAND $ 1, % CITY OF NORTHFIELD $ 20, % NORTHFIELD EDA $ % NORTHFIELD HRA $ % TOWN OF BRIDGEWATER $ % TOWN OF CANNON CITY $ % TOWN OF ERIN $ 2, % TOWN OF FOREST $ 2, % TOWN OF MORRISTOWN $ % TOWN OF NORTHFIELD $ % TOWN OF RICHLAND $ % TOWN OF SHIELDSVILLE $ 1, % TOWN OF WALCOTT $ % TOWN OF WARSAW $ % TOWN OF WEBSTER $ 4, % TOWN OF WELLS $ % TOWN OF WHEATLAND $ % TOWN OF WHEELING $ % SD 0656 FARIBAULT $ 48, % SD 0659 NORTHFIELD $ 60, % SD 0721 NEW PRAGUE $ 4, % SD 0763 MEDFORD $ % SD 0829 WASECA $ % SD 2143 WEM $ 4, % SD 2172 KENYON-WANAMINGO $ % SD 2905 TRI-CITY UNITED $ 18, % STATE $ 27, % SP RICE COUNTY $ 17, % SP CITY OF DENNSION $ % SP CITY OF DUNDAS $ 2, % SP CITY OF FARIBAULT $ 7, % SP CITY OF LONSDALE $ 57, % SP CITY OF MORRISTOWN $ % SP CITY OF NORTHFIELD $ 10, % SP TOWN OF BRIDGEWATER $ % SP TOWN OF FOREST $ 1, % SP TOWN OF MORRISTOWN $ % SP TOWN OF WEBSTER $ % TOTAL $ 495, %

34 Real & Personal Property: 10 year average % collected = 98.1% Special Assessments: 10 year average % collected = 96.4% Manufactured Homes: 10 year average % collected = 58.1% 34 Note: Rice County Collections Only

35 Tax Year Outstanding Balance Taxes Billed % Uncollected 2006 $ 185 $13M 0.00% 2007 $ 1,505 $14M 0.01% 2008 $ 3,220 $15M 0.02% 2009 $ 5,192 $17M 0.03% 2010 $ 7,251 $18M 0.04% 2011 $ 10,939 $18M 0.06% 2012 $ 19,393 $19M 0.10% 2013 $ 32,809 $19M 0.17% 2014 $ 67,604 $20M 0.34% 2015 $ 104,571 $21M 0.50% Total $ 252,669 $174M 0.14% On average, Rice County is collecting 87% of delinquent R & P property taxes within 2 years Approximately 0.14% of R & P property taxes for the last 10 years are still outstanding as of 3/31/16 35 Note: Rice County Collections Only

36 Tax Year Outstanding Balance Taxes Billed % Uncollected 2006 $ 891 $25K 4% 2007 $ 1,422 $24K 6% 2008 $ 1,572 $24K 7% 2009 $ 1,961 $24K 8% 2010 $ 2,432 $25K 10% 2011 $ 2,760 $27K 10% 2012 $ 2,832 $30K 9% 2013 $ 3,962 $33K 12% 2014 $ 6,078 $31K 20% 2015 $ 9,197 $30K 31% Total $ 33,106 $273K 12% On average, Rice County is collecting 60% of delinquent MH property taxes within 2 years Approximately 12% of MH property taxes for the last 10 years are still outstanding as of 3/31/16 36 Note: Rice County Collections Only

37 Confession of Judgment: a method to remove the property tax lien on property before it is forfeited to the state; delinquent tax amount due is combined under a new contract; agreement is to pay total amount in equal annual installments, plus additional interest, for a specified number of years Upon expiration of redemption or confession of judgment, titles to properties with unpaid taxes are forfeited to the state in trust for local taxing districts; the tax-forfeited land is either sold/repurchased and returned to the tax rolls, classified as conservation or put to public use 37

38 CITY JOBZ NAME 2015 PAYABLE CAPTURED TAX WITH JOBZ PROGRAM 2015 PAYABLE TOTAL CAPTURED TAX WITHOUT JOBZ PROGRAM 2015 PAYABLE BUSINESS SAVINGS FROM JOBZ PROGRAM No State or RMV No State or RMV FARIBAULT ALDI INC. $ 36,865 $ 468,457 $ 431, MDC DEVELOPMENT II LLC $ 6,109 $ 56,166 $ 50, PRAIRIE AVENUE LEASING LTD $ 20,442 $ 28,348 $ 7, SAGE ELECTROCHROMICS INC $ 8,062 $ 339,758 $ 331, FARIBAULT TOTAL $ 71,477 $ 892,728 $ 821,251 NORTHFIELD RICE COUNTY JOB OPPORTUNITY BUILDING ZONE (JOBZ) Rice County is committed to enhancing the quality of life and stimulating the local economy through the attraction of high quality development and the retention and creation of high quality jobs. Rice County provides business subsidy assistance in the form of tax exemptions or tax credits to qualified businesses located in a job zone under the Job Opportunity Building Zone (JOBZ) Program per Minn. Stat PERKINS MOTOR TRANSPORT $ 6,571 $ 69,050 $ 62, STROBEL & WERNER RE HOLDING CO $ 24,415 $ 119,662 $ 95, UPPER LAKES FOODS INC $ 5,911 $ 73,829 $ 67, NORTHFIELD TOTAL $ 36,897 $ 262,541 $ 225,644 GRAND TOTAL $ 108,374 $ 1,155,269 $ 1,046,895 All in their last year of JOBZ except SAGE 38

39 CITY TIF DESCRIPTION TYPE OF DISTRICT DUNDAS BASE NTC RICE COUNTY TAX INCREMENT FINANCING (TIF) Rice County supports Tax Increment Financing (TIF) as a method of financing costs to promote development, redevelopment and housing in Rice County in accordance with Minn. Stat PAYABLE NTC CAPTURED NTC BASE TAX CAPACITY RATE 2015 PAYABLE TAX CAPACITY RATE SITE CAPTURED BASE INCREMENT No State or RMV SITE CAPTURED INCREMENT No State or RMV TIF EXCESS TIF CAPTURE % K-MART ET AL DUNDAS 16 Redevelopment ,756 48, % % $ 347 $ 53,858 $ 15, % DISTRICT 2 DUNDAS 18 Redevelopment 16, , , % % $ 23,023 $ 293,500 $ 84, % DISTRICT 3 COLLEGE CITY BEVERAGE Economic Development 1, , , % % $ 1,547 $ 197,758 $ 33, % DUNDAS TOTAL 474,577 $ 24,917 $ 545,116 $ 133,287 FARIBAULT LONSDALE NORTHFIELD DISTRICT 6-1 TOWNHOMES 57 Housing ,442 13, % % $ 413 $ 14,994 $ % RIVER RIDGE 64 Redevelopment 1,104 52,904 51, % % $ 1,265 $ 59,371 $ % FBLT ROAD-OLD K-MART 65 Redevelopment 14, ,867 99, % % $ 16,330 $ 88,305 $ 25, % DIST 11 MIKE'S GARAGE Economic Development 8,056 18,242 10, % % $ 9,233 $ 9,903 $ 1, % DIST 10 MRG TOOL & DIE Economic Development 21,756 43,028 21, % % $ 24,936 $ 18,401 $ 5, % FARIBAULT TOTAL 195,959 $ 52,177 $ 190,974 $ 33, THREE LINKS CARE CTR 102 Housing 2,296 59,518 57, % % $ 3,307 $ 56,728 $ 25, % LONSDALE TOTAL 57,222 $ 3,307 $ 56,728 $ 25,697 PRESIDENTIAL COMMONS 80 Housing 15,714 78,657 62, % % $ 20,928 $ 76,398 $ 7, % DIST 2-1 HILEY NEFF 85 Housing 3,108 14,589 11, % % $ 4,139 $ 13,454 $ 1, % RIVERFRONT TAX INCR 86 Redevelopment 17, , , % % $ 22,757 $ 192,081 $ 72, % JEFFERSON SQUARE Housing 18,750 21,617 2, % % $ 24,972 $ 2,964 $ % NORTHFIELD TOTAL 275,843 $ 72,796 $ 284,898 $ 82,478 GRAND TOTAL 1,003,601 $ 153,199 $ 1,077,715 $ 275,087 39

40 RICE COUNTY ECONOMIC TAX ABATEMENTS Rice County is committed to enhancing the quality of life and stimulating the local economy through the attraction of high quality development and the retention and creation of high quality jobs. Economic tax abatement is one technique to encourage private development projects by allowing the rebate of property taxes to the owner, reallocating the taxes to pay for public infrastructure costs or deferring the property taxes and rebating the interest penalty. Economic tax abatements are developed in conformance to Minn. Stat and projects granted tax abatement shall submit annual reports in compliance with the Business Subsidy Reporting Requirements established in Minn. Stat. 116J J.995. MUNICIPALITY APPLICANT PARCEL # REQUEST AMOUNT MAX TERM MAX ANNUALLY PER BSA TOTAL PAID THROUGH TAXES PAYABLE % of 2015 TAXES PAYABLE ABATED 40 WELLS TOWNSHIP MDC DEVELOPMENT IV, LLC $ 220,000 2/1/2022 $ 22,000 $ 77,000 $ 187,664 12% Purpose: Construction of a 145,800 square foot expansion to an existing distribution facility, which will increase the tax base and provide additional employment opportunities in Rice County Commitments: Construct to substantial completion a 145,800 square foot expansion to an existing distribution facility by December 31, 2010 Creation of a minimum of 6 new jobs with an average wage of $13.72/hour excluding benefits and the retention of 7 jobs with an average wage of $19.35/hour excluding benefits within 2 years of the benefit date Maintain jobs for at least five years after the benefit date or length of abatement, whichever is greater CITY OF FARIBAULT B&B MANUFACTURING & ASSEMBLY, LLC $ 40,000 2/1/2020 $ 5,714 $ 14,285 $ 39,802 14% Purpose: Relocation of manufacturing business, including the purchase of additional equipment and the construction of leasehold improvements to an industrial building, which will increase the tax base and provide additional employment opportunities in Rice County Commitments: Maintain improved project as a manufacturing facility for at least 5 years Creation of a minimum of 20 new jobs, consisting of 16 jobs relocated from former location and the creation of 4 new jobs with an average wage of $12/hour excluding benefits CITY OF FARIBAULT LIVING GREENS FARM, INC $ 50,000 2/1/2018 $ 10,000 $ 25,000 $ 38,638 26% Purpose: Start-up of a new, high-tech aeroponic vertical farming operation, including construction of leasehold improvements to an existing industrial building, which will increase the tax base and provide additional employment opportunities in Rice County Commitments: Purchase equipment and commence construction of the improvements to the facility by January 1, 2013 Occupy the facility no later than August 1, 2013 Creation of a minimum of 20 new jobs over the course of 3 years GRAND TOTAL $ 310,000 $ 37,714 $ 116,285 $ 266,104 14%

41 Centralized database for property tax data Scope: consolidation of submission data, electronic submission, reporting extracts Benefits: minimized technical burden, analyze data faster and more thoroughly, enhance audit/oversight MCCC counties are leveraging testing efforts amongst all Beta test counties: Ramsey, Roseau, Scott, Washington Testing focus thus far has been regarding schema and submission, not data; currently troubleshooting run times Source: MN Dept of Revenue Current Abstract Transition to PRISM Summary (Updated 3/15/2016) 41

42 September 2015: Decision by Thomson Reuters cross-functional team from Product, Engineering, Support and Account Management, backed by executive leadership, to delay Aumentum Upgrade Moving to a single code line provides for a monthly release schedule whereby all new functionality will be delivered and patches will only be necessary for critical defects and data fixes, enhances reliability, reduces resource constraints Leveraging the Riverside County, CA code base as the base for the single code line (50,000+ hours of testing completed) Riverside County, CA project expected to go live in 2016 MCCC counties have halted testing efforts until Thomson Reuters can resume coding for Minnesota Version tickets are being prioritized accordingly 42

43 Manufactured Home Collections 10 year average yearly collections at 58%, compared to 98% for Real & Personal Property Collection Steps: Dec 15 th : Mail Notice of Delinquent Taxes (437 sent for 2014 taxes, 428 sent for 2015 taxes) Dec 15 th Mar 15 th : 90 day grace period to contact taxpayer by phone, develop a tax plan, file notice of lien (required for seize & sell), monthly payment plan, cancellation of taxes After Mar 15 th : Revenue recapture, levy on bank accounts, seize and sell personal/real property, obtain court judgment County Actions: In addition to revenue recapture, pursuing a more aggressive approach including issuance of Notice and Demand For Payment (pay within 30 days) and establishment of a formal monthly payment plan If the above actions do not persuade compliance, the County will pursue further collection procedures, which will include levying bank accounts/wages or even seizing property Electronic Payments Still receiving majority of tax payments via mail or in-person (74% $ volume, 67% transactional volume) Contributing factors include demographics (rural, cultural diversity, elderly) for which electronic payment is unavailable or not trusted, fee avoidance, ACH payment plans easily forgotten due to infrequency County Actions: Continue to offer multiple electronic payment options, including credit card, e-check and ACH payments both online and via telephone, as well as semi-annual or quarterly ACH payment plans Consider alternative fee schedule, targeted communication plan, modifications to tax statements indicating ACH payment plan enrollment Pursue RFP process for tax statement vendor to offer full service electronic option Agile Technology Total Tax Capacity While the Aumentum Tax System provides a platform to perform basic and necessary functions in property tax administration, there is much room for improvement as we have experienced instability and irregularity in functional performance and there is a general lack of canned business intelligence reporting County Actions: To address instability pursuing option to have Thomson Reuters host our Aumentum Tax System application which would allow Rice County to leverage Thomson Reuters infrastructure, data security and disaster recovery To address irregularity in functional performance submit defects as they arise and participate in the Aumentum Tax Advisory Committee prioritization process To address lack of business intelligence reporting actively participate in submitting and advocating reporting enhancements and testing through the Aumentum Tax Reports Committee 43

44 Levy/Settlement Book Bond Register Testing (PRISM, Custom Reports) 44