GREENSBORO — Guilford County commissioners already are sparring over a plan to open a county-owned license plate office weeks before the issue appears before the board.
The idea of the county opening a license plate office — a service for which the Department of Motor Vehicles usually uses private contractors — has been discussed by county staff for a few years.
The idea gained steam last year when a license plate agency was closed in Greensboro, creating a vacancy. The county applied for and was granted the right to open an office in October.
The Board of Commissioners must approve any such plan before it moves forward, though — and a number of commissioners said the county shouldn’t get into the license plate business.
“It’s my understanding that it’s almost always private companies or private citizens who run these offices,” said commissioners Vice Chairman Kirk Perkins . “I really don’t think Guilford County should be in the business of competing with private industry. That’s really where our tax base comes from.”
The county has two privately run license plate agencies — one on West Market Street in Greensboro and a second on Westchester Drive in High Point.
A third at Golden Gate Shopping Center was closed after an office manager and employee were charged with fraud.
The county got serious about the idea after that.
“Because of our population, the DMV would like to see three license plate offices in the county,” said Ben Chavis , the county tax director. “It’s something that we had been talking about for a while, and this seemed like the right time.”
Chavis said the time is right because of a coming change in the way vehicle taxes are collected.
“It used to be that the DMV would sell the tags and then they would tell the county, and we’d mail out the tax bills on them,” Chavis said. “People had four months to pay before we’d block their registrations.”
But as of 2013, Chavis said, license plate offices will begin collecting vehicle taxes on the state and county’s behalf when they collect the $28 license plate fee.
“We’re already in the tax collection business,” Chavis said. “We thought it made sense for us to open our own office.”
There is money to be made. The state pays each license plate office $1.43 for standard transactions such as plate renewals and $1.27 for collecting taxes on new vehicles. The offices also get $1 for transactions involving the transfer of a vehicle title.
But some commissioners said that’s not enough money to go to the trouble and expense of opening and staffing a new office. Some said that’s money better left to private contractors who will pay taxes on it anyway .
“Why does it make any sense for the county government to be beating out contractors competing for this business in our own county?” Commissioner Billy Yow said. “We’re always talking about creating jobs. We’re always asking, 'Where are the jobs coming from?’ Here we are taking jobs.”
According to the DMV, 39 private contractors competed for the contract that ultimately went to Guilford County.
Yow also has criticized the process by which the county won the contract — submitting its application late and incomplete, but still coming away with the contract after an interview with DMV officials.
Chavis said the plan that he and county Manager Brenda Jones Fox have drawn up calls for the new office to be housed in downtown’s Independence Center, where the county collects property taxes.
Chairman Melvin “Skip” Alston said he thinks the plan has merit but worries about parking for that location.
“I want to hear more about it,” Alston said. “We’re thinking outside the box on how to bring in more revenue, and I like that. We just want some more details.”
Commissioners will get those details when Chavis and Fox present their plan to the board during the work session before the meeting Thursday . The plan could be up for a vote as soon as the board’s next official meeting.
Contact Joe Killian at 373-7023 or joe.killian@news-record.com
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