HomeMy WebLinkAboutAgenda - 09-02-2021; 8-d - Tax Collector’s Annual Settlement for Fiscal Year 2020-21 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 2, 2021
Action Agenda
Item No. 8-d
SUBJECT: Tax Collector's Annual Settlement for Fiscal Year 2020-21
DEPARTMENT: Tax Administration
ATTACHMENT(S): INFORMATION CONTACT:
Resolution Nancy T. Freeman, Director,
Reports (5) 919-245-2735
Order to Collect
Copy of Report of Delinquent Property
Taxes (provided to 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 2021-2022.
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 2020-2021.
For fiscal year ended June 30, 2021, Orange County's overall current year tax collection
percentage was 99.26%. 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 2020-2021 current year tax collection percentage for real property was 99.30%,
personal property was 97.54%, 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 99.82°/x.
The tax collector is required by 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
2
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 2020-2021 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 2020-2021
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 2020-2021 the tax collector
was charged with collecting remaining taxes from the years 2010-2019, in addition to
current year 2020 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 2020-2021.
• 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 2020 taxes at the beginning
of the 2021 fiscal year.
• The final report is a copy of the delinquent property tax accounts as of June 30, 2021. It is
also 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.
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 2021-2022.
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RES-2021-051
RESOLUTION APPROVING THE
TAX COLLECTOR'S ANNUAL SETTLEMENT
FOR THE CURRENT YEAR 2020
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 2020 Tax Accounts
2. Settlement of Prior Years (2010-2019) Tax Accounts
3. Tax Collector's Report of 2020 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 2nd day of September, 2021.
Renee Price
Chair, Board of County Commissioners
Attest:
Clerk to the Board of County Commissioners
Settlement for 2020 Tax Accounts
Orange County,Fire and Special Districts 4
Towns of Carrboro,Chapel Hill,and Hillsborough
for Fiscal Year 2020-2021
Orange Fire&Special Town of Town of Town of Town of Grand
County Districts Carrboro Chapel Hill Hillsborough Mebane Total
CHARGES
Adjusted Levy-Real 150,199,154.83 28,619,558.33 13,328,224.74 39,747,995.49 6,700,458.97 1,398,689.56 239,994,081.92
Adjusted Levy-Personal 6,984,556.33 337,476.83 1,466,611.54 459,537.76 367,440.55 9,615,623.01
Adjusted Levy-Motor Vehicles 2,485.93 261.49 179.95 - - 2,927.37
Adjusted Levy—Personal&Motor Vehicles 1,015,799.12 1,015,799.12
Adjusted Levy-Vehicle Fees 30.00 60.00 - 90.00
Adjusted Levy-VTS Registered Motor Vehicles 11,707,606.47 2,011,184.84 1,640,195.87 2,905,202.30 795,635.77 145,457.16 19,205,282.41
Interest&Penalties 317,114.80 59,011.58 21,911.25 68,592.59 10,613.79 985.60 478,229.61
Total 169,210,918.36 31,705,553.87 15,328,100.18 44,188,641.87 7,966,246.29 1,912,572.87 270,312,033.44
CREDITS
Real Uncollected 1,054,577.97 161,970.98 49,317.09 108,938.53 69,013.49 7,785.52 1,451,603.58
Personal Uncollected 172,142.15 17,155.57 50,314.99 4,190.99 1,016.97 244,820.67
Motor Vehicles Uncollected 118.39 61.23 - - - 179.62
Personal&Motor Vehicles Uncollected 32,956.44 32,956.44
Motor Vehicle Fees Uncollected 30.00 - - 30.00
VTS Registered Motor Vehicles Uncollected 21,259.15 3,837.70 6,695.77 2,352.49 1,249.72 - 35,394.83
VTS Registered Motor Vehicles Cash Deposited 11,686,347.32 2,007,347.14 1,633,500.10 2,902,849.81 794,386.05 145,457.16 19,169,887.58
Cash Deposited 156,276,473.38 29,499,441.61 13,621,340.42 41,124,186.05 7,097,406.04 1,758,313.22 249,377,160.72
Total 169,210,918.36 31,705,553.87 15,328,100.18 44,188,641.87 7,966,246.29 1,912,572.87 270,312,033.44
COLLECTION CREDIT
Cash Deposited 167,962,820.70 31,506,788.75 15,254,840.52 44,027,035.86 7,891,792.09 1,903,770.38 268,547,048.30
Prop Tax Appeals Pending Credit 1,081.40 251.44 - 677.82 - 2,010.66
Total Collection Credit 167,963,902.10 31,507,040.19 15,254,840.52 44,027,713.68 7,891,792.09 1,903,770.38 268,549,058.96
COLLECTION PERCENTAGE
Real 99.30% 99.43% 99.63% 99.73% 98.97% 99.44%
Personal 97.54% 94.92% 96.57% 99.09% 99.72%
Motor Vehicles 95.24%
Personal&Motor Vehicles 97.53% 96.76%
Motor Vehicle Fees
VTS Registered Motor Vehicles 99.82% 99.81% 99.59% 99.92% 99.84% 100.00%
Total 99.26% 99.46% 99.52% 99.64% 99.06% 99.54%
Ijeftlon Percentage Reported In the CAFR and to the LGC =
Combined County,Fire&Special Distncl Overall Collection 99.35%
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Nancy T.Freeman,Tax Collector for Orange County,Towns of Carrboro,Chapel Hill,,HVne,and applicable fire/special districts,being duly appointed,respectfully
reports that he has made a diligent effort within the time permitted by law to collect t` 4l sted out of their personal property and by other means available to him for collection of such taxes.
Sworn to and subscribed before me this the }d y of August,2021. ;,
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C Nancy T.Fre an,Tax Collector
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SETTLEMENT OF UNPAID TAXES
FOR THE YEARS 2009-2019 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 3,758,954.14 1,308,811.70 2,450,142.44
Downtown Revitalization 3,760.49 1,102.30 2,658.19
Cedar Grove Fire 14,065.51 5,921.14 8,144.37
Greater Chapel Hill Fire 1,275.38 1,186.77 88.61
Damascus Fire 485.56 155.44 330.12
Efland Fire 30,697.70 13,085.86 17,611.84
Eno Fire 18,680.34 8,548.70 10,131.64
Little River Fire 6,838.98 2,780.68 4,058.30
New Hope Fire 12,924.22 4,819.86 8,104.36
Orange Rural Fire 40,010.94 15,124.35 24,886.59
Orange Grove Fire 15,812.71 6,167.72 9,644.99
South Orange Fire 20,810.00 9,761.38 11,048.62
Southern Triangle Fire 5,070.53 3,137.26 1,933.27
White Cross Fire 37,944.98 13,500.89 24,444.09
CH Carrboro School District 356,881.11 130,285.52 226,595.59
Total County, Fire, and Special Districts 4,324,212.59 1,524,389.57 2,799,823.02 300,709.51
Town of Carrboro Real 163,065.76 58,771.86 104,293.90
Personal Property and Motor Vehicle 102,751.72 11,310.38 91,441.34
Total 265,817.48 70,082.24 195,735.24 10,672.74
Town of Chapel Hill Real 244,983.43 109,758.62 135,224.81
Personal Property and Motor Vehicle 296,809.70 39,067.09 257,742.61
Total 541,793.13 148,825.71 392,967.42 30,619.73
Town of Hillsborough Real 158,263.23 67,770.22 90,493.01
Personal Property and Motor Vehicle 39,096.66 3,666.94 35,429.72
Total 197,359.89 71,437.16 125,922.73 13,687.56
Town of Mebane Real 6,683.10 5,870.44 812.66
Personal Property and Motor Vehicle 4,514.45 1,041.10 3,473.35
Total 11,197.55 6,911.54 4,286.01 981.14
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 2019,that she has made a diligent effort
within the time permitted by law to collect such taxes out of the personal property(.61 pWQftjjers,or by other means available to her for collection of such taxes.
Sworn and subscribed before me on this the ay of August,2021 ���► 7 �i�
Nancy T. F e man,Tax Collector
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2020-2021 Non-Tax Revenue and Miscellaneous Taxes 6
2020-2021 COLLECTIONS OF NON-TAX REVENUE
Emergency Services Ambulance Fees $ 27,343,186.61 2020-2021 COLLECTION OF RENTAL VEHICLE GROSS RECEIPT
not inclusive of Medicaid Reimbursement TAX FOR MUNICIPALITIES
Medicaid Reimbursement for Emergency Services $ 563,457.00 Chapel Hill $ 57,900.32
Beer&Wine Licenses $ 10,335.00 Hillsborough $ 8,869.83
Rental Vehicle Gross Receipts Tax $ 73,780.60 Carrboro $ 46.80
Emergency Mgmt Collection $ 32,505.00 TOTAL $ 66,816.95
(all other charges but ambulance)
Efland Sewer Loan Collection $ 1,434.00
Solid Waste Programs Fee Collection $ 9,113,527.12 2020-2021 COLLECTION OF FEES FOR MUNICIPALITIES
Waste Center Fee Collection $ 2,325.71 Chapel Hill Stormwater $ 2,694,596.33
3R Fee Collection $ 6,020.24 Carrboro Stormwater $ 975,072.29
Occupancy Tax Collection $ 758,003.12 Hillsborough Stormwater $ 702,811.96
TOTAL $ 37,904,574.40 Hillsborough Waterstone Assessment $ 535,538.88
TOTAL $ 4,908,019.46
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 2020-2021 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 - - 0.00% 2,747.99 157.87 2,590.12 5.74%
City of Durham,Motor Vehicle Taxes 227.83 227.83 100.00% 212.26 - 212.26 0.00%
City of Durham,Motor Vehicle Tag Fees 15.00 15.00 100.00% 60.00 60.00 0.00%
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TAX COLLECTOR'S REPORT
OF MINIMAL PROPERTY TAX BILLS
Fiscal Year 2020-2021
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 2,566.
The total amount of taxes waived is $2,739.61.
Nancy T. Freeman
Orange County Tax Administrator
Sworn to and subscribed before me this REBECCA B LEE
the _day of August 2021. NOTARY PUBLIC
_ 1_� WELL
COUNTY,NC
Notary Public T24er-c,a 2.Le c.. T,&,, 6L'
My Commission expires (o• ,�--20X2
�. 8
ORANGE COUNTY
NOIZ'I'I I C AIZOI.INA
TAX OFFICE
Nancy T. Freeman,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 2020-2021
Accounts Receivable—Real/Personal Property
Nancy T. Freeman,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 2020 real and personal property as of July 1, 2021 is$1,711,135.67.
Nancy T. r eman
Orange County Tax Collector REBECCA B LEE
NOTARY PUBLIC
CASWELL COUNTY,NC
My Comrttissim E�ires �(•
Sworn to and subscribed before meTM
the ) �p day of August, 2021.
Noltary Public
My Commission expires
9
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 2012
through 2021 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 2nd day of September, 2021
Renee Price
Chair, Board of County Commissioners
Attest:
Clerk to the Board of County Commissioners