Understanding Vehicle Ownership Taxes and Special Assessments in Teller County

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Exploring Specific Ownership Taxes (SOT), 1.50 and 2.50 fees, and special assessments in Teller County. Learn about how these taxes and fees are paid, distributed, and the challenges in estimating collections. Discover the allocation of funds to county road and bridge funds, municipalities, and general road and bridge departments. Gain insights into factors affecting tax estimations and strategies for conservative estimates in fluctuating economic conditions.

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SOT & Special Assessments Mark CZ Czelusta Teller County Treasurer & Public Trustee

Explain what Specific Ownership, 1.50 and 2.50 taxes are, when they are paid, and how they are to be distributed. Describe why it is difficult to estimate Specific Ownership, 1.50 and 2.50 tax collections. Objectives Explain what Special Assessments are, when they are collected and how they are paid.

What are SOT, and 1.50 & 2.50 fees, BTW? When are they paid? HUH??? Why do I care? Estimating SOT, 1.50 & 2.50 fees? What are Special Assessments?

SOT: Specific Ownership Taxes. Paid as part of Vehicle Registration Collected by the Clerk & Recorder Based upon year of manufacture and original taxable value Generally decreases over the course of 10 years. CRS 42-3-107 SOT

$1.50 charged to vehicles and trailers greater than 2,000 pounds. $2.50 charged to vehicles less than 2,000 pounds and to trailer coaches. 1.50 & 2.50 Fees Paid during vehicle registration. Collected by the Clerk & Recorder. CRS 42-3-310

You will distribute SOT, 1.50 and 2.50 fees monthly to the county and to cities and districts 1.50 & 2.50 fees go to the following: County Road & Bridge Fund Home Rule Municipalities General Funds for Use by their Road & Bridge Departments Why care? SOT: Goes to County, Cities & Districts based upon the year s distribution model.

A VERY tall order!! In bad economic years, and or higher interest rates: People do not buy new cars as often. And not as expensive. But they buy more campers. New? Used? People sell other toys and buy different toys. But that is not always the case What if people move to the area? What is the age of the population? Could people be buying more cars? Less cars? More expensive cars? Estimating them My technique: I often get calls from cities and districts asking for my estimate on SOT, and 1.50 & 2.50. I highlight the discussion above and decline to offer. Generally, the Teller County Finance Department uses 30-50 percent of the previous year. (Extremely Conservative).

Usually associated with water districts and Cities/Towns The district passes the debt to the County Treasurer who then adds them to the subsequent year s tax notice County Treasurer charges fees to the entity per CRS 30-1-102 & CRS 32-1-1101 Special Assessments Procedures for sending this information to the County Treasurer vary by County. However

In order to file a Special Assessment with the County Treasurer Must arrive by the date specified by the County Treasurer Teller County requires them by December 15th Other counties by December 1st; many in November Generally Accepted Approaches Copy of the resolution or other document certifying the delinquent accounts should be included. BIG DEAL: Once the Treasurer accepts the Special Assessment, the district/entity CANNOT collect against that account. Treasurer collects with the tax payment. Treasurer provides notice to the district/entity when the Special Assessment is paid. Unpaid assessments will be added to the Tax Lien Sale.