Hopefully, if you run a business in Guilford County, you properly reported and valued all the property you have inside, or use for that business.
Because, on Thursday, Nov. 7, the Guilford County Board of Commissioners will approve spending nearly $1 million to hire outside auditors attempting to find companies in the county that cheat on their taxes or that underpay them simply because they made calculation errors or honestly mistakenly undervalued property, etc.
The board will approve a contract with Charlotte-based Tax Management Associates Inc. for business and property tax auditing services for the Guilford County Tax Department.
North Carolina law allows counties to call in appraisal firms and other firms that have “expertise in one or more of the duties of the assessor to assist the assessor in the performance of these duties.”
For each audit of businesses conducted, the county will pay the firm $795.
Guilford County Tax Director Ben Chavis is a nice man and a minister who says the prayer before the county commissioners’ meetings get underway. But he seems to especially favor the verse “Render therefore unto Caesar the things which are Caesar’s; and unto God the things that are God’s.”
Because Caesar – that is, Guilford County under the current Democratic-led board – is running up a mountain of debt and adding new programs and services every month.
And the county needs more money, more money, more money, to pay for that.
Chavis and his department almost always come in near the top of counties in the state when it comes to collecting a very high percentage of all property taxes owed. He has told the Rhino Times in the past that he sees it as an issue of “fairness” since everyone should pay what they owe or it’s not fair to other taxpayers.
One good thing is that, since Chavis is a man of God, if you do cheat on your taxes and get caught, he is required by God to forgive you. You will still have to pay up, of course, but the tax director will forgive you.
Earlier this year the county sent out a request for bids to solicit business personal property tax auditing services for the Guilford County Tax Department. As a result of that process, county staff chose Tax Management Associates Inc. to get the three-year contract – with the option for a two-year extension.
The Board of Commissioners will put an official stamp on the deal later this week.
The cost for the three years of audits comes to $954,000 – that’s 400 audits at $795 a pop, which comes to $318,000 a year.
The audits will be examining business personal property taxes.
That will include any physical property that a business owns or controls, such as
machinery, equipment, computers, furniture, business supplies, building improvements and farm equipment.
It doesn’t include inventory items or the value of the building.
Businesses in North Carolina must file a listing of what’s called their “business personal property” every January – and they face penalties for late or inaccurate declarations.
Guilford County tax staff knows that audits can be an uncomfortable process for the Guilford County residents and a statement from Tax Management Associates notes that the audit firm is well aware of this.
“TMA prides itself on its comprehensive public relations program and the professional manner in which TMA treats the individual taxpayer,” the statement from the company to the county reads. “Public relations are a large portion of our business, and we dedicate ourselves to being the client’s number one ambassador. TMA’s objective has always been to deliver a successful revenue enhancement project that the jurisdiction can be proud of when communicating with its constituents and peers. TMA understands that interactions with taxpayers need to be professional and courteous, while also achieving the goals of the project. TMA has the know-how to successfully manage these taxpayer interactions and strives to create a positive experience at every opportunity. Our goal is to always remain understanding, while educating the taxpayer about the applicable tax requirements, helping them complete the process, and conducting an exit interview with the taxpayer to reconcile findings.”
In North Carolina, county tax departments are required to do some audits of businesses to make sure they’re properly reporting and valuing the property used for their work. These audits attempt to verify that the listed property and associated values are compliant with state and county tax regulations. The NC Department of Revenue provides general guidance and standards for assessments; however, each county has discretion regarding the extent and frequency of the audits it conducts or outsources.
Hopefully, they are fairer than the “nonpartial” person who comes out for the city when you have a dispute.
The city called our 6 x 8 old $100 storage building a 2-car garage.
The guy who came out said, ok. But looked at our old deck and said it was worth $10k (few years back before prices went up.)
Then wanted to come in my house.
I was by myself, and he was creepy. I said no.
What prompted the county employee to come to your property? Did you call the county regarding their assessed value of your property? Once on your property, the county accessor can look over your entire property. Built a new porch or deck without getting a permit? Built a tiny she-shed, unheated and no running water, without a permit? The county assessor who came to your property will note the previously unknown improvements and will add those improvements to your property description and tax accordingly. Caveat to anyone considering a call to the county about their property. Glad you said “no” to the inside visit. Maybe looking for more things to tax. Obtaining a permit is a means for the county to raise your taxes.
One more reason to be Libertarian.
Tyranny is never acceptable.
All counties in NC have used outside firms to audit this stuff for years. This is a contract renewal that Scott saw on the agenda for the upcoming meeting and titled the story with his typical National Enquirer scandal rag headline.
The Left always progresses to authoritarianism.
This is another menacing move to harass and intimidate people who work every day to create wealth and provide jobs – by people who live by leeching off their efforts.
Government is Mafia. But at least The Mob only demands 10%, total.
And they don’t pretend to be virtuous.
There’s something to be said for honest extortionists.
Ok, Clickbait. Let’s see Don’t Fight City Hall’s response to questions posed, if she replies.
I will be interested to know whether the additional revenue exceeds the expense. Any sizable business uses a CPA firm to prepare income tax returns and business personal property tax listings. In my experience of over thirty years, the only unlisted property has been for those small, self-employed people who work out of their home and have no idea their business property must be listed. They don’t have a lot of business property to list. Even if the county claims your unlisted property (say some office furniture and equipment) is worth $10,000 (which is a default number meant to alarm and get you to list and pay) at our high combined GSO/County rate of 1.403%, the govt gets $140 and pays $795 for the audit. Sounds like government math to me!