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HomeMy WebLinkAboutAgenda 8-e - Tax Collector’s Annual Settlement for Fiscal Year 2017-18ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 4, 2018 SUBJECT: Tax Collector's Annual Settlement for Fiscal Year 2017 -18 DEPARTMENT: Tax Administration ATTACHMENT(S): Resolution Reports (5) Order to Collect Report of Delinquent Property Taxes (only provided to Clerk on Flash Drive) Action Agenda Item No. 8 -e INFORMATION CONTACT: T. Dwane Brinson, Director, 919- 245 -2726 1 PURPOSE: To receive the tax collector's annual settlement on current and delinquent taxes, approve by resolution the accounting thereof, and upon acceptance of the reports, issue the Order to Collect for Fiscal Year 2018 -2019. BACKGROUND: The annual settlement provides in detail the collection for the County, all fire and special districts, and the Towns of Carrboro, Chapel Hill, Hillsborough and Mebane during Fiscal Year 2017 -2018. For fiscal year ended June 30, 2018, Orange County's overall current year tax collection percentage was 99.19 %. The overall collection percentage can be broken down further into three property classifications: real property, personal property, and motor vehicles. Orange County's fiscal year 2017 -2018 current year tax collection percentage for real property was 99.14 %, personal property was 99.39 %, including a minimal amount of motor vehicles taxes that must be billed by the County rather than by the State. The collection rate for registered motor vehicle taxes collected by the State (VTS Registered Motor Vehicles) was 99.84 %. The collection of these taxes has been added to the settlement for the first time this year. The tax collector is required by North Carolina General Statute (NCGS) 105 -373 to give an annual settlement to the governing body. It is the intent of the Machinery Act to create a direct relationship of responsibility and accountability between the tax collector and governing body. Furthermore, NCGS 105 -373 requires the tax collector to furnish a sworn report to the governing body showing a list of property owners whose taxes remain unpaid for the preceding fiscal year. There are four sections to the report: business personal property owners, public personal property owners, individual personal property owners and real property owners. By acceptance of the resolution, the Board designates said list to be entered into the minutes. The tax claim is not discharged or written off. These accounts are recharged to the collector as delinquent accounts, and the collector has full authority to use levy and garnishment to affect their PIA collection. Lists have been provided to the Clerk to the Board for the permanent record of all outstanding tax by property classification. Two settlement reports for tax are included. • The first shows all taxes charged for collection for the 2017 -2018 fiscal year. The Tax Collector began the collection of Mebane City real and personal property taxes in 2016- 2017 fiscal year, so this is the second year that Orange County has collected for Mebane City. All uncollected taxes allowed as credits in a settlement are recharged to the tax collector. Per NCGS 105- 373(3)(b) the tax collector is credited with (paraphrased): 1. All sums representing taxes collected and deposited; 2. Releases approved by the governing body; 3. The principal amount of taxes constituting liens on real property; 4. Amount shown on the insolvent list; 5. Discounts as allowed by law; 6. Commissions (if any) lawfully payable to the tax collector as compensation; 7. Outstanding Property Tax Commission appeals. • The second settlement report shows all prior years' taxes collected during the 2017 -2018 fiscal year. NCGS 105 -378 limits the tax collector's use of enforced collection remedies to ten years from the due date of the tax. As such, for fiscal year 2017 -2018, the tax collector was charged with collecting remaining taxes from the years 2008 -2016, in addition to current year 2017 taxes. Additional reports are included for review by the governing board: • One of the reports provides details of all other miscellaneous revenue charged to the Tax Collector for collection during fiscal year 2017 -2018. Amounts for Hillsborough Waterstone Assessment Collection and Efland Sewer Loan Collection were added to this report last year. • An additional report is a minimal bill report that provides the number of bills and amount of taxes waived in accordance with a resolution approved by the governing board on July 26, 1995. NCGS 105- 321(f) states, in part, that the governing body of a taxing unit may direct its tax assessor and tax collector not to collect minimal taxes where the total principal amount does not exceed five dollars. • Another report shows the accounts receivable information for 2017 taxes at the beginning of the 2018 fiscal year. • The final report is a copy of the delinquent property tax accounts as of June 30, 2018. It is only provided to the Clerk on a flash drive. FINANCIAL IMPACT: There is no financial impact associated with this item. SOCIAL JUSTICE IMPACT: There is no Orange County Social Justice Goal impact associated with this item. RECOMMENDATION(S): The Manager recommends that the Board: • Receive the Tax Collector's annual settlement, approve and authorize the Chair to sign the resolution accepting it as reported for entry into the minutes; and • Approve, authorize the Chair to sign, and issue the Order to Collect to the Tax Collector for Fiscal Year 2018 -2019. RES- 2018 -056 RESOLUTION APPROVING THE TAX COLLECTOR'S ANNUAL SETTLEMENT FOR THE CURRENT YEAR 2017 AND PRIOR YEARS BE IT RESOLVED by the Board of Commissioners of Orange County that the following documents attached hereto are received and approved, consisting of the following: 1. Settlement of 2017 Tax Accounts 2. Settlement of Prior Years (2008 -2016) Tax Accounts 3. Tax Collector's Report of 2017 Unpaid Taxes 4. Tax Collector's Report of Minimal Property Tax Bills 5. Report of Collections of Non -Tax Revenue and Miscellaneous Taxes 6. Tax Collectors Accounts Receivable ADOPTED this the 4th day of September, 2018. Mark Dorosin Chair, Board of County Commissioners Attest: Clerk to the Board of County Commissioners K Settlement for 2017 Tax Accounts Orange County, Fire and Special Districts Towns of Carrboro, Chapel Hill, and Hillsborough for Fiscal Year 2017 -2018 EA! Orange Fire & Special Town of Town of Town of Town of Grand County Districts Carrboro Chapel Hilt Hillsborough Mebane Total CHARGES Adjusted Levy -Real 137,122,485.83 27,100,394.61 12,601,210.78 35,415,132.85 5,495,613.63 1,165,295.98 218,900,133.68 Adjusted Levy- Personal 6,354,464.12 298,707.77 1,282,209.59 597,358.59 395,809.25 8,928,549.32 Adjusted Levy -Motor Vehicles 1,383.23 - 271.93 - 137.20 1,792.36 Adjusted Levy -- Personal & Motor Vehicles 893,876.85 893,876.85 Adjusted Levy - Vehicle Fees 60.00 - 60.00 Adjusted Levy -VTS Registered Motor Vehicles 10,057,978.91 1,795,284.67 1,468,567.49 2,640,190.97 589,014.31 102,571.00 16,653,607.35 Interest & Penalties 287,609.63 46,767.96 15,594.24 49,028.76 13,898.25 725.27 413,624.11 Total 153,823,921.72 29,836,324.09 14,384,080.28 39,386,894.10 6,695,884.78 1,664,538.70 245,791,643.67 CREDITS Real Uncollected 1,196,535.88 196,201.06 95,201.34 130,261.27 56,537.74 3,765.18 1,678,502.47 Personal Uncollected 38,739.47 1,904.02 7,156.38 434.90 90.86 48,325.63 Motor Vehicles Uncollected 6.78 - 4.11 - - 10,89 Personal & Motor Vehicles Uncollected 6,548.57 6,548.57 Motor Vehicle Fees Uncollected - 30.00 - 30.00 VTS Registered Motor Vehicles Uncollected 16,317.15 3,075.63 4,105.86 3,023.57 1,255.64 187.76 27,965.61 VTS Registered Motor Vehicles Cash Deposited 10,041,661.76 1,792,209.04 1,464,461.63 2,637,167.40 587,758.67 102,383.24 16,625,641.74 Cash Deposited 142,530,660.68 27,838,289.79 12,818,407.43 36,609,251.37 6,049,897.83 1,558,111.66 227,404,618.76 Total 153,823,921.72 29,836,324.09 14,384,080.28 39,386,894.10 6,695,884.78 1,664,538.70 245,791,643.67 COLLECTION CREDIT Cash Deposited 152,572,322.44 29,630,498.83 14,282,869.06 39,246,418.77 6,637,656.50 1,660,494.90 244,030,260.50 Prop Tax Appeals Pending Credit 11,261.00 8,334.51 19,595.51 Total Collection Credit 152,583,583.44 29,630,498.83 14,282,869.06 39,246,418.77 6,645,991.01 1,660,494.90 244,049,856.01 COLLECTION PERCENTAGE Real 99.14% 99.28% 99.24% 99.63% 99.12% 99.68% Personal 99.39% 99.36% 99.44% 99.93% 99.98% Motor Vehicles 99.51% Personal & Motor Vehicles 99.39% 99.27% Motor Vehicle Fees VTS Registered Motor Vehicles 99.84% 99.83% 99.72% 99.89% 99.79% 99.82% Total 99.19% 99.31% 99.30% 99.64% 99.25% 99.76% Combined County, Fire &Special Distract Overall Collection 99.29% C.6. on Percents Re rted In the CAFR and to the LGC 99.20 °k Timothy Dwane Brinson, Tax Collector for Orange County, Towns of Carrboro, Chapel Hill, Hillsborough and Mebane, and applicable fire /special districts, being duly appointed, respectfully reports that he has made a diligent effort within time permitted by law to collect the taxes due from persons listed out of their personal property and by other means available to him for collection of such taxes. 11the Swor to and subscribed before me this the � tt day of August, 2018. 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Dwane Brinson, Tax Collector %u'"^✓ V • / "t Notary P Scheni PMti ission expires Notary cy IMY Nortfi Carolina , m Comission s I SETTLEMENT OF UNPAID TAXES FOR THE YEARS 2008 -2016 5 Orange County, Fire and Special Districts Towns of Carrboro, Chapel Hill, Hillsborough, and Mebane Adjusted Levy Total Uncollected Balance Interest Collections (Accounts Receivable) Collected Orange County 3,205,069.79 1,088,945.46 2,116,124.33 Downtown Revitalization 5,671.50 3,088.41 2,583.09 Cedar Grove Fire 10,897.61 3,703.02 7,194.59 Greater Chapel Hill Fire 64.00 - 64.00 Damascus Fire 1,018.80 678.40 340.40 Efland Fire 27,459.56 8,190.52 19,269.04 Eno Fire 11,766.10 3,714.65 8,051.45 Little River Fire 5,001.76 2,632.84 2,368.92 New Hope Fire 8,888.17 3,603.08 5,285.09 Orange Rural Fire 39,518.95 16,264.63 23,254.32 Orange Grove Fire 13,258.23 6,624.58 6,633.65 South Orange Fire 16,974.07 6,579.27 10,394.80 Southern Triangle Fire 4,135.82 1,842.02 2,293.80 White Cross Fire 21,886.62 5,841.78 16,044.84 CH Carrboro School District 324,698.57 105,889.69 218,808.88 Total County, Fire, and Special Districts 3,696,309.55 1,257,598.35 2,438,711.20 243,102.95 Town of Carrboro Real 188,829.49 74,181.46 114,648.03 Personal Property and Motor Vehicle 123,308.45 1,725.56 121,582.89 Total 312,137.94 75,907.02 236,230.92 18,982.25 Town of Chapel Hill Real 244,856.39 108,816.62 136,039.77 Personal Property and Motor Vehicle 241,510.47 14,502.34 227,008.13 Total 486,366.86 123,318.96 363,047.90 20,900.43 Town of Hillsborough Real 147,093.13 61,356.60 85,736.53 Personal Property and Motor Vehicle 40,759.95 883.31 39,876.64 Total 187,853.08 62,239.91 125,613.17 17,332.53 Town of Mebane Real 2,219.72 1,758.36 461.36 Personal Property and Motor Vehicle 4,148.58 75.40 4,073.18 Total 6,368.30 1,833.76 4,534.54 247.18 Timothy Dwane Brinson, Tax Collector for Orange County, Towns of Carrboro, Chapel Hill, Hillsborough and Mebane, and applicable fire /special districts, being duly appointed, respectfully reports, in accordance with G.S. 105- 373(b), the amount of taxes remaining unpaid for years 2008 through 2016, that he has made a diligent effort within the time permitted by law to collect such taxes out of the personal property of such taxpayers, or by other means available to him for collection of such taxes. Sworn and subscribed before me on this the Q L day of August, 2018 T. Dwane Brinson, Tax Collector ="m A. h ray N ry PCuoumy Notary Public My commission expires or -Ave 1� Comnfts* Ex 2017 -2018 Non -Tax Revenue and Miscellaneous Taxes 2017 -2018 COLLECTIONS OF NON -TAX REVENUE Emergency Services Ambulance Fees $ 2,738,020.03 not inclusive of Medicaid Reimbursement 70,391.21 Medicaid Reimbursement for Emergency Services $ 545,156.00 Beer & Wine Licenses $ 13,761.25 Rental Vehicle Gross Receipts Tax $ 87,952.43 Emergency Mgmt Collection $ 48,837.20 (all other charges but ambulance) Efland Sewer Loan Collection $ 1,239.80 Solid Waste Programs Fee Collection $ 7,914,583.52 Waste Center Fee Collection $ 5,968.44 3R Fee Collection $ 17,445.58 Occupancy Tax Collection $ 1,581,735.49 TOTAL $ 12,954,699.74 2017 -2018 COLLECTION OF RENTAL VEHICLE GROSS RECEIPT TAX FOR MUNICIPALITIES $ Chapel Hill $ 70,391.21 Hillsborough $ 9,002.98 Carrboro $ 46.80 TOTAL $ 79,440.99 n 2017 -2018 COLLECTION OF FEES FOR MUNICIPALITIES Chapel Hill Stormwater $ 2,523,235.23 Hillsborough Stormwater $ 676,535.02 Hillsborough Waterstone Assessment $ 826,063.23 TOTAL $ 4,025,833.48 COLLECTIONS OF MISCELLANEOUS AD VALOREM TAXES & MOTOR VEHICLE TAG FEES Note: Registered Motor Vehicle taxes are now collected at the State level. Collection information for both Durham and Mebane will eventually dwindle to zero. Fiscal Year 2017 -2018 All Prior Years Adjusted Total Amount Collection Adjusted Total Amount Levy Collected Uncollected Percentage Levy Collected Uncollected Town of Mebane, Motor Vehicle Taxes 137.20 137.20 0.00% 4,081.95 32.46 4,049.49 City of Durham, Motor Vehicle Taxes City of Durham, Motor Vehicle Tag Fees 0.00% 0.00% 212.26 212.26 60.00 60.00 Collection Percentage 0.80% 0.00% 0.00% INA TAX COLLECTOR'S REPORT OF MINIMAL PROPERTY TAX BILLS Fiscal Year 2017 -2018 North Carolina General Statute 105- 321(f) is a provision authorizing the governing board of a taxing unit that collects its own taxes to adopt a resolution foregoing the collection of bills that do not exceed a specified amount, up to five dollars ($5.00). The Orange County Board of Commissioners has adopted, by resolution effective July 26, 1995, a policy change to permit the County Assessor and Tax Collector to waive the billing and collection of tax notices that do not exceed five dollars ($5.00), and that the tax collector keep record of such and report the total amount as part of annual settlement. There were no motor vehicle notices that were less than five dollars ($5.00). The total number of real estate and personal property notices less than five dollars ($5.00) is 2763. The total amount of taxes waived is $3,192.14. Timothy Dwane Brinson Orange County Tax Administrator ORANGE COUNTY NORTH CAROLINA TAX OFFICE T. Dwane Brinson, Tax Administrator 1 228 S. Churton Street, Hillsborough, NC 27278 1 919.245.2100 State of North Carolina County of Orange Tax Collector's Report of FY 2017 -2018 Accounts Receivable — Real /Personal Property Timothy Dwane Brinson, Tax Collector for Orange County, Towns of Carrboro, Chapel Hill, Hillsborough, and Mebane, and applicable Fire Districts being duly appointed, deposes and says: A complete list of persons owning real and personal property whose tax remain unpaid and the principal amount due has been filed with the Clerk to the Board of County Commissioners and is available for inspection. The principal amount of 2017 real and personal property as of July 1, 2018 is $1,721,252.02. Timothy Dwane Brinson Orange County Tax Collector Sworn to and subscribed before me this the oC I day of August, 2018. Sc hard A. MoCrey Notary Public Orange County North Carolina �� M Commission res Notary Public My Commission expires // 30 20/ X ORDER OF THE BOARD OF COUNTY COMMISSIONERS IN ACCORDANCE WITH G.S. 105 -321 State of North Carolina County of Orange ORDER OF THE BOARD OF COUNTY COMMISSIONERS IN ACCORDANCE WITH G.S. 105 — 373 and 105 — 321 To: Timothy Dwane Brinson Tax Collector of Orange County, Towns of Carrboro, Chapel Hill, Mebane and Hillsborough, and applicable Fire Districts You are hereby authorized, empowered, and commanded to collect the taxes remaining unpaid as set forth in the 2009 through 2018 tax records filed in the office of the Tax Collector, and in the tax receipts herewith delivered to you in the amounts and from the taxpayers likewise therein set forth. You are further authorized, empowered, and commanded to collect the 2009 through 2018 taxes charged and assessed as provided by law for adjustments, changes, and additions to the tax records and tax receipts delivered to you which are made in accordance with law. Such taxes are hereby declared to be a first lien on all real property of the respective taxpayers in Orange County, Town of Carrboro, Town of Chapel Hill, Town of Hillsborough, Town of Mebane, Fire Districts of Orange Rural, Efland, South Orange, New Hope, Eno, Orange Grove, Greater Chapel Hill, Little River, Cedar Grove, Southern Triangle, Damascus, and White Cross, and Special Districts of Chapel Hill- Carrboro Schools and Chapel Hill Downtown Service District, and this order shall be a full and sufficient authority to direct, require and enable you to levy on and sell any real and personal property, and attach wages and /or other funds, of such taxpayers, for and on account thereof, in accordance with law. You are further authorized to call upon the Sheriff to levy upon and sell personal property under execution for the payment of taxes. Within available funds in the budget ordinance and personnel positions established, the Tax Collector may hire employees, and they shall have the authority to perform those functions authorized by the Machinery Act of Chapter 105 of North Carolina General Statutes and other applicable laws for current and previous years' taxes. County personnel presently in the Tax Collector's office will continue to serve in their respective collection positions. Witness my hand and official seal, this 4th day of September, 2018 Mark Dorosin Chair, Board of County Commissioners Attest: Clerk to the Board of County Commissioners