HomeMy WebLinkAboutAgenda - 09-01-20; 8-e - Tax Collector’s Annual Settlement for Fiscal Year 2019-20 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 1, 2020
Action Agenda
Item No. 8-e
SUBJECT: Tax Collector's Annual Settlement for Fiscal Year 2019-20
DEPARTMENT: Tax Administration
ATTACHMENT(S): INFORMATION CONTACT:
Resolution Nancy T. Freeman, Director,
Reports (5) 919-245-2735
Order to Collect
Report of Delinquent Property Taxes
(provided to Deputy Clerk on Flash
Drive)
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 2020-2021.
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 2019-2020.
For fiscal year ended June 30, 2020, Orange County's overall current year tax collection
percentage was 99.15%. 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 2019-2020 current year tax collection percentage for real property was 99.19%,
personal property was 97.12%, which includes motor vehicle gap bills that are billed monthly 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 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 collection. Lists have
been provided to the Deputy Clerk to the Board for the permanent record of all outstanding tax by
property classification.
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Two settlement reports for tax are included.
• The first shows all taxes charged for collection for the 2019-2020 fiscal year. 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 2019-2020
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 2019-2020 the tax collector
was charged with collecting remaining taxes from the years 2009-2018, in addition to
current year 2019 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 2019-2020.
• 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 2019 taxes at the beginning
of the 2020 fiscal year.
• The final report is a copy of the delinquent property tax accounts as of June 30, 2020. It
has been provided to the Deputy 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.
ENVIRONMENTAL IMPACT: There is no Orange County Environmental Responsibility 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 2020-2021.
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RES-2020-049
RESOLUTION APPROVING THE
TAX COLLECTOR'S ANNUAL SETTLEMENT
FOR THE CURRENT YEAR 2019
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 2019 Tax Accounts
2. Settlement of Prior Years (2009-2018) Tax Accounts
3. Tax Collector's Report of 2019 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 1 st day of September, 2020.
Penny Rich
Chair, Board of County Commissioners
Attest:
Clerk to the Board of County Commissioners
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SETTLEMENT OF UNPAID TAXES
FOR THE YEARS 2009-2018 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 3,411,383.92 976,508.01 2,434,875.91
Downtown Revitalization 3,700.14 1,436.99 2,263.15
Cedar Grove Fire 14,344.08 5,798.34 8,545.74
Greater Chapel Hill Fire 122.36 47.47 74.89
Damascus Fire 1,015.66 746.75 268.91
Efland Fire 29,823.93 9,805.23 20,018.70
Eno Fire 14,904.42 4,709.22 10,195.20
Little River Fire 5,878.17 2,039.18 3,838.99
New Hope Fire 11,964.96 4,669.21 7,295.75
Orange Rural Fire 44,847.89 21,118.35 23,729.54
Orange Grove Fire 14,002.57 5,232.01 8,770.56
South Orange Fire 19,006.30 6,716.01 12,290.29
Southern Triangle Fire 3,774.53 1,004.34 2,770.19
White Cross Fire 26,870.90 7,471.34 19,399.56
CH Carrboro School District 299,833.92 74,645.30 225,188.62
Total County, Fire, and Special Districts 3,901,473.75 1,121,947.75 2,779,526.00 211,157.34
Town of Carrboro Real 164,247.43 57,162.26 107,085.17
Personal Property and Motor Vehicle 115,363.97 8,129.17 107,234.80
Total 279,611.40 65,291.43 214,319.97 11,029.42
Town of Chapel Hill Real 171,487.28 33,548.94 137,938.34
Personal Property and Motor Vehicle 245,380.50 31,662.04 213,718.46
Total 416,867.78 65,210.98 351,656.80 14,236.56
Town of Hillsborough Real 142,796.48 39,061.50 103,734.98
Personal Property and Motor Vehicle 43,392.96 2,998.01 40,394.95
Total 186,189.44 42,059.51 144,129.93 9,583.31
Town of Mebane Real 7,298.29 2,714.82 4,583.47
Personal Property and Motor Vehicle 8,648.28 454.81 8,193.47
Total 15,946.57 3,169.63 12,776.94 508.75
Nancy T. Freeman,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 2009 through 2018,that she 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 her for collection of such taxes.
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2019-2020 COLLECTIONS OF NON-TAX REVENUE
Emergency Services Ambulance Fees 2,777,700.33$ 2019-2020 COLLECTION OF RENTAL VEHICLE GROSS RECEIPT
(not inclusive of Medicaid Reimbursement)
Medicaid Reimbursement for Emergency Services 539,086.00$ Chapel Hill 68,547.85$
Beer & Wine Licenses 12,895.00$ Hillsborough 10,813.74$
Rental Vehicle Gross Receipts Tax 88,126.73$ Carrboro 46.80$
Emergency Mgmt Collection 23,580.00$ TOTAL 79,408.39$
(all other charges but ambulance)
Efland Sewer Loan Collection 1,239.80$
Solid Waste Programs Fee Collection 9,005,101.58$
Waste Center Fee Collection 2,198.06$ Chapel Hill Stormwater 2,792,435.59$
3R Fee Collection 6,306.39$ Carrboro Stormwater 800,943.81$
Occupancy Tax Collection 1,343,303.47$ Hillsborough Stormwater 666,355.07$
TOTAL 13,799,537.36$ Hillsborough Waterstone Assessment 619,299.61$
TOTAL 4,879,034.08$
Fiscal Year 2019-2020 All Prior Years
Adjusted Total Amount Collection Adjusted Total Amount Collection
Levy Collected Uncollected Percentage Levy Collected Uncollected Percentage
Town of Mebane, Motor Vehicle Taxes 115.36 115.36 - 100.00%3,422.41 154.54 3,267.87 4.52%
.
City of Durham, Motor Vehicle Taxes - - - 0.00%212.26 - 212.26 0.00%
City of Durham, Motor Vehicle Tag Fees - - - 0.00%60.00 - 60.00 0.00%
Note: Registered Motor Vehicle taxes are now collected at the State level. Collection information for both Durham and Mebane will eventually dwindle to zero.
2019-2020 COLLECTION OF FEES FOR MUNICIPALITIES
2019-2020 Non-Tax Revenue and Miscellaneous Taxes
TAX FOR MUNICIPALITIES
COLLECTIONS OF MISCELLANEOUS AD VALOREM TAXES & MOTOR VEHICLE TAG FEES
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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: Nancy T. Freeman
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 2011 through 2020 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 2011
through 2020 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 1st day of September, 2020
____________________________________________
Penny Rich
Chair, Board of County Commissioners
Attest:
____________________________________
Clerk to the Board of County Commissioners
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