The URL can be used to link to this page

Home My WebLink AboutAgenda - 08-17-2010 - 4iORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: August 17, 2010 Action Agenda Item No. ~{- " ~I SUBJECT: Release of Debts DEPARTMENT: Tax Administration PUBLIC HEARING: (Y/N) No ATTACHMENT(S): Chart of Amounts Memorandum of Explanation Copy of Relative Statutes INFORMATION CONTACT: Jo Roberson, 245-2735 PURPOSE: To release debt owed to Orange County in excess of 10 years that is no longer collectible. BACKGROUND: Under North Carolina General Statute (NCGS) 105-373 (g), the Board of County Commissioners "may, at their discretion, relieve the Collector of the charge of taxes owed by persons previously presented on the insolvent list that are five or more years past due when it appears to the governing body that such taxes are uncollectible". Presented as part of this abstract is a listing by year beginning with 1984 through 1999 of personal property that have been pursued extensively and can no longer be collected using enforced ..collection techniques. NCGS 105-373 (h) addresses the relief from collection of taxes on classified motor vehicles. To remain uniform, presented as part of this abstract is a listing by year beginning with 1993 through 1999 of Classified Registered Motor Vehicles that have been pursued extensively and can no longer be collected using enforced collection techniques. NCGS 105-378(a) specifically bars the use of enforced collections unless the procedure was instituted within 10 years from the date the tax first became due. In discussion with the Financial Services Department, there is agreement that good accounting practice would be to release this debt from the charge and system maintained by the Tax Administration Department. FINANCIAL IMPACT: A total amount of $2,560,314.04 would be released in debt from the years 1984 through 1999 in personal property and registered motor vehicle ad valorem property tax. 2 RECOMMENDATION(S): The Manager recommends that the Board approve and direct the Financial Services Director and the Tax Administrator to account for and release all debts charged for the purpose of Ad Valorem Personal Property and Classified Motor Vehicle tax in excess of 10 years from the record. Sum of DUE AS OF AUG 1 TYPE BILL YEAR RMV UNSECURED Grand Total 1984 184.37 184.37 1986 61.69 61.69 1987 21.52 21.52 1988 190.98 190.98 1989 3358.10 3358.10 1990 129652.85 129652.85 1991 159187.86 159187.86 1992 185938.96 185938.96 1993 272545.07 33603.06 306148.13 1994 257452.09 31315.04 288767.13 1995 292662.85 37223.36 329886.21 1996 296591.36 33573.09 330164.45 1997 266860.47 47785.41 314645.88 1998 196720.43 64236.60 260957.03 1999 226001.48 25147.40 251148.88 Grand Total 1808833.75 751480.29 2560314.04 4 ORANGE COUNTY TAX ADMINISTRATION 228 S CHURTON STREET, SUITE 200 PO BOX 8181 HILLSBOROUGH, NORTH CAROLINA 27278 Jo Roberson, Director Telephone (919) 245-2100 Fax (919) 644-3332 To: Board of County Commissioners Frank Clifton, Manager Subject: Request for Write-Off of Uncollectible Debt Date: August 17, 2010 After discussion with the Financial Services Director, Clarence Grier, I am brining forward a request to release specific types of debt older than 10 years from the current taxation system. Real property liabilities are not dischargeable and are not included in the total amount brought forward for release. The real property liability over 10 years currently is $23,486.00. By law those remain a lien to the real property. Under North Carolina General Statute 105-378 (g) specifically speaks to the tax collector being barred from any type of enforced collection methods after a period often years. Additionally North Carolina General Statue 105-373 (g) & (h) speak to the relief of the charge of taxes owed from the collector for unsecured debt of personal property and of registered motor vehicles. Copies of both statutes have been attached for your review. Over the past 10 years these debts have been worked extensively in an endeavor to resolve their collection. Though the statutes do allow for relief earlier than 10 years, because we do have an active collections program I would recommend holding all debt for the 10 year period. Therefore, as the Tax Administrator I submit to resolve issues from an accounting standpoint and from a conversion aspect of going to the new Property Information Management System that authorization be given to release the debts older than 10 years for all unsecured debt. All real property debt will be converted and reflected in the new Property Information Management System. Respectfully submitted, Jo Roberson, Tax Administrator 5 § 105-373. Settlements. (g) Relief from Collecting Insolvents. -The governing body of any taxing unit may, in its discretion, relieve the tax collector of the charge of taxes owed by persons on the insolvent list that are five or more years past due when it appears to the governing body that such taxes are uncollectible. (h) Relief from Collecting Taxes on Classified Motor Vehicles. The board of county commissioners may, in its discretion, relieve the tax collector of the charge of taxes on classified motor vehicles listed pursuant to G.S. 105-330.3(a)(1) that are one year or more past due when it appears to the board that the taxes are uncollectible. This relief, when granted, shall include municipal and special district taxes charged to the collector. (1939, c. 310, s. 1719; 1945, c. 635; 1947, c. 484, ss. 3, 4; 1951, c. 300, s. 1; c. 1036, s. 1; 1953, c. 176, s. 2; 1955, c. 908; 1967, c. 705, s. 1; 1971, c. 806, s. 1; 1983, c. 670, s. 22; c. 808, ss. 5-7; 1987, c. 16; 1991, c. 624, s. 3; 1991 (Reg. Sess., 1992), c. 961, s. 10; 1993, c. 539, s. 726; 1994, Ex. Sess., c. 24, s. 14(c); 1997-456, s. 27; 2006-30, s. 7.) § 105-378. Limitation on use of remedies. (a) Use of Remedies Barred. - No county or municipality may maintain an action or procedure to enforce any remedy provided by law for the collection of taxes or the enforcement of any tax liens (whether the taxes or tax liens are evidenced by the original tax receipts, tax sales certificates, or otherwise) unless the action or procedure is instituted within 10 years from the date the taxes became due. (b) Not Applicable to Special Assessments. -The provisions of subsection (a), above, shall not be construed to apply to the lien of special assessments. (c) Repealed by Session Laws 1998-98, s. 26, effective August 14, 1998. (d) Enforcement and Collection Delayed Pending Appeal. -When the board of county commissioners or municipal governing body delivers a tax receipt to a tax collector for any assessment that has been or is subsequently appealed to the Property Tax Commission, the tax collector may not seek collection of taxes or enforcement of a tax lien resulting from the assessment until the appeal has been finally adjudicated. The tax collector, however, may send an initial bill or notice to the taxpayer. (1933, c. 181, s. 7; c. 399; 1945, c. 832; 1947, c. 1065, s. 1; 1949, cc. 60, 269, 735; 1951, cc. 71, 306, 572; 1953, cc. 381, 427, 538, 645, 656, 752, 775, 1008; 1955, c. 1087; 1957, cc. 53, 67$, 1123; 1959, cc. 373, 608; 1961, cc. 542, 695, 885; 1965, cc. 129, 294; 1967, c. 242; c. 321, s. 1; c. 422, s. 1; 1969, c. 96; 1971, c. 806, s. 1; 1998-98, s. 26; 2006-30, s. 6.)