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ICABARRUSCOUNIYI <br /> NORTH CAROLINA <br /> <br />MEMORANDUM <br /> <br />TO <br /> <br />FROM <br /> <br />DATE <br /> <br />SUBJECT <br /> <br />Board of Comm]ssloners <br /> <br />Blair Bennett /~ <br /> <br />January 16, 2003 <br /> <br />Business Personal Property Audits <br /> <br />Update of Past History, <br /> <br />In keeping with your goal to maintain the current tax rate, you were presented, at the <br />budget retreat, a proposal from Tax Management Associates, [nc (TMA) outhn]ng a plan <br />to begin auditing business personal property These audits would complement those <br />being done by our ~n-house staff <br /> <br />This week, Bill Koun shared with me his overview of the past history of audits done by <br />both TMA and the in-house staff The in-house program since mid 1992 has generated <br />over 300 audits and an accumulative discovery value of approximately $250 mdhon <br />Using a tax rate ors 60 would equate to $1.5 million in discovered revenue TMA <br />generated approximately 650 audits with an accumulative d~scovery value of'$ l 56 <br />billion of which $1 45 billion was one taxpayer Using that same tax rate of $ 60 would <br />equate to $9 4 million of which $8.7 million agmn was attributed to that same taxpayer. <br />Thls was not the total extent of all revenue received as a result of discoveries, as we also <br />received income from real estate discoveries, tax penalties and interest In addition, <br />future revenue benefits will be realized due to the increase in value as a result of the <br />audits <br /> <br />How to Proceed and Move Forward <br /> <br />What Methodology to Use in Account Selection <br /> <br />When choosing to audit businesses, the county must be fair and uniform in its approach <br />An ongoing aud]t program will increase taxpayer's compliance in the hstmg process <br /> <br /> F~nance Department <br /> <br />PO Box707 · Concord, NC28026-0707 · 704-920-2104 <br /> <br /> <br />