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HomeMy WebLinkAboutAgenda 01-18-22; 8-e - Advertisement of Tax Liens on Real Property 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: January 18, 2022 Action Agenda Item No. 8-e SUBJECT: Advertisement of Tax Liens on Real Property DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: 1) Order of the Board of County Nancy T. Freeman, Tax Administrator, Commissioners in Accordance with NCGS (919) 245-2735 105-369 2) Advertisement Headers 3) North Carolina General Statute 105-369 4) List of Unpaid 2021 Taxes: On File in the Clerk to the Board of Commissioner's Office PURPOSE: To report the amount of unpaid taxes for the current year that are liens on real property as required by North Carolina General Statute 105-369 and to request on or about March 23, 2022 as the date set by the Board for the tax lien advertisement. BACKGROUND: North Carolina General Statute 105-369 requires the Tax Administrator to report to the governing board the total amount of unpaid taxes for the current year that are liens on real property. This report is available in the Clerk to the Board of County Commissioners' office. Upon receipt of this report, the governing board must order and set a date for the lien advertisement. Tax liens may be advertised any time between March 1 and June 30. All properties that were sold during the year of 2021 will be advertised in the new owners' names. The process includes that a notice alerting property owners to the pending advertisement must be mailed at least 30 days in advance of the date of advertisement. This mailed notice will state that the last day to pay 2021 taxes in order to avoid being advertised is March 9, 2022. Between the mailed notice and the advertised notice, property owners are advised that collection efforts are underway. North Carolina General Statute 105-369 mandates both these notices. The Tax Administrator will post the list of advertised delinquent property owners, using the same information and a similar format, on the Tax Office website. There will be a link on the Tax Office home page to view the list of advertised delinquent property owners: http://www.orangecountync.gov/728/Tax-Administration. The list will be posted on the same date as the list will be advertised in the newspapers and remain posted for 30 days. North Carolina General Statute 105-369 (d) requires the Tax Administrator to determine the actual cost of the advertisement and to set a fee to cover the actual costs. The cost for advertisement 2 will be $5.75 per parcel to cover the costs to advertise all tax liens in The News of Orange and The Herald Sun. FINANCIAL IMPACT: All financial impacts related to the tax lien advertisement process are already addressed in the approved FY 2021-22 budget, and there will be no net financial impact to the County. 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 accept the report and approve and authorize the Chair to sign the Order setting the lien sale advertisement on or about March 23, 2022. 3 Attachment 1 ORDER OF THE BOARD OF COUNTY COMMISSIONERS IN ACCORDANCE WITH G.S. 105-369 State of North Carolina County of Orange To: Nancy T. Freeman, Tax Collector of Orange County You are hereby authorized, empowered, and commanded to advertise tax liens on real property for failure to pay 2021 taxes. You shall advertise said liens by posting a notice of the liens at the county courthouse and by publishing each lien at least one time in one or more newspapers having general circulation in the taxing unit. Advertisement of the tax liens shall be made on or about Wednesday,March 23,2022. This order shall be a full and sufficient authority to direct,require, and enable you to advertise said tax liens in accordance with North Carolina General Statute 105-369. Witness my hand and official seal,this_day of 12022 Renee Price Chair,Board of County Commissioners Attest: Laura Jensen Clerk to the Board of County Commissioners 4 Attachment 2 § 105-369. Advertisement of tax liens on real property for failure to pay taxes. (a) Report of Unpaid Taxes That Are Liens on Real Property. - In February of each year,the tax collector must report to the governing body the total amount of unpaid taxes for the current fiscal year that are liens on real property. A county tax collector's report is due the first Monday in February, and a municipal tax collector's report is due the second Monday in February. Upon receipt of the report, the governing body must order the tax collector to advertise the tax liens. For purposes of this section, district taxes collected by county tax collectors shall be regarded as county taxes and district taxes collected by municipal tax collectors shall be regarded as municipal taxes. (b) Repealed by Session Laws 1983 (Regular Session, 1984), c. 1013. (b1) Notice to Owner. -After the governing body orders the tax collector to advertise the tax liens,the tax collector must send a notice to the record owner of each affected parcel of property, as determined as of the date the taxes became delinquent. The notice must be sent to the owner's last known address by first-class mail at least 30 days before the date the advertisement is to be published.The notice must state the principal amount of unpaid taxes that are a lien on the parcel to be advertised and inform the owner that the name of the record owner as of the date the taxes became delinquent will appear in a newspaper advertisement of delinquent taxes if the taxes are not paid before the publication date. Failure to mail the notice required by this section to the correct record owner does not affect the validity of the tax lien or of any foreclosure action. (c) Time and Contents of Advertisement. -A tax collector's failure to comply with this subsection does not affect the validity of the taxes or tax liens.The county tax collector shall advertise county tax liens by posting a notice of the liens at the county courthouse and by publishing each lien at least one time in one or more newspapers having general circulation in the taxing unit.The municipal tax collector shall advertise municipal tax liens by posting a notice of the liens at the city or town hall and by publishing each lien at least one time in one or more newspapers having general circulation in the taxing unit. Advertisements of tax liens shall be made during the period March 1 through June 30.The costs of newspaper advertising shall be paid by the taxing unit. If the taxes of two or more taxing units are collected by the same tax collector, the tax liens of each unit shall be advertised separately unless, under the provisions of a special act or contractual agreement between the taxing units,joint advertisement is permitted. The posted notice and newspaper advertisement shall set forth the following information: (1) Repealed by Session Laws 2006-106, s. 2, effective for taxes imposed for taxable years beginning on or after July 1, 2006. (1a) The name of the record owner as of the date the taxes became delinquent for each parcel on which the taxing unit has a lien for unpaid taxes, in alphabetical order. (1b) After the information required by subdivision (1a) of this subsection for each parcel, a brief description of each parcel of land to which a lien has attached and a statement of the principal amount of the taxes constituting a lien against the parcel. 5 (2)A statement that the amounts advertised will be increased by interest and costs and that the omission of interest and costs from the amounts advertised will not constitute waiver of the taxing unit's claim for those items. (3) In the event the list of tax liens has been divided for purposes of advertisement in more than one newspaper, a statement of the names of all newspapers in which advertisements will appear and the dates on which they will be published. (4)A statement that the taxing unit may foreclose the tax liens and sell the real property subject to the liens in satisfaction of its claim for taxes. (d) Costs. - Each parcel of real property advertised pursuant to this section shall be assessed an advertising fee to cover the actual cost of the advertisement. Actual advertising costs per parcel shall be determined by the tax collector on any reasonable basis.Advertising costs assessed pursuant to this subsection are taxes. (e) Payments during Advertising Period. -At any time during the advertisement period, any parcel may be withdrawn from the list by payment of the taxes plus interest that has accrued to the time of payment and a proportionate part of the advertising fee to be determined by the tax collector. Thereafter,the tax collector shall delete that parcel from any subsequent advertisement, but the tax collector is not liable for failure to make the deletion. (f) Listing and Advertising in Wrong Name. - No tax lien is void because the real property to which the lien attached was listed or advertised in the name of a person other than the person in whose name the property should have been listed for taxation if the property was in other respects correctly described on the abstract or in the advertisement. (g) Wrongful Advertisement. -Any tax collector or deputy tax collector who willfully advertises any tax lien knowing that the property is not subject to taxation or that the taxes advertised have been paid is guilty of a Class 3 misdemeanor, and shall be required to pay the injured party all damages sustained in consequence. (1939, c. 310, s. 1715; 1955, c. 993; 1971, c. 806, s. 1; 1983, c. 808, s. 1; 1983 (Reg. Sess., 1984), c. 1013; 1993, c. 539, s. 725; 1994, Ex. Sess., c. 24, s. 14(c); 1999-439, s. 1; 2000-140, s. 73; 2006- 106, s. 2.) 006- 106, s. 2.) 6 Attachment 3 (Advertisement to appear in The Herald Sun) NOTICE OF ADVERTISEMENT OF TAX LIENS ON REAL PROPERTY ORANGE COUNTY AND TOWNS OF CARRBORO, CHAPEL HILL, HILLSBOROUGH AND MEBANE Under and by virtue of the authority vested in me by Section 105-369 of the North Carolina General Statutes and pursuant to an order of the Board of Commissioners of Orange County dated January 18, 2022, I am hereby advertising tax liens for the year 2021 upon the real estate described below. The amount advertised will be increased by interest and cost. The omission of interest and cost from the amount advertised will not constitute a waiver of the taxing unit's claim for these items. The real estate subject to the lien, the name of the taxpayer (owner as of January 6, 2022), and the amount of taxes due are set out below. If the taxes remain unpaid the lien will be foreclosed by the taxing unit and the property sold to satisfy the claim for the taxes. These collection procedures do not apply to taxpayers under a current US Bankruptcy plan. When a parcel was subdivided after January 1, 2021 and the ownership of one or more of the resulting parcels was transferred, the amount of the tax lien on each parcel is the amount of the lien on the original parcel, as it existed on January 1, 2021, as shown in this advertisement. This list includes all properties in Orange County. This, the 23 day of March 2022. Nancy T. Freeman Orange County Consolidated City-County Tax Collector 7 (Advertisement to appear in The News of Orange) NOTICE OF ADVERTISEMENT OF TAX LIENS ON REAL PROPERTY ORANGE COUNTY AND TOWNS OF CARRBORO, CHAPEL HILL, HILLSBOROUGH AND MEBANE Under and by virtue of the authority vested in me by Section 105-369 of the North Carolina General Statutes and pursuant to an order of the Board of Commissioners of Orange County dated January 18, 2022, I am hereby advertising tax liens for the year 2021 upon the real estate described below. The amount advertised will be increased by interest and cost. The omission of interest and cost from the amount advertised will not constitute a waiver of the taxing unit's claim for these items. The real estate subject to the lien, the name of the taxpayer (owner as of January 6, 2022), and the amount of taxes due are set out below. If the taxes remain unpaid the lien will be foreclosed by the taxing unit and the property sold to satisfy the claim for the taxes. These collection procedures do not apply to taxpayers under a current US Bankruptcy plan. When a parcel was subdivided after January 1, 2021 and the ownership of one or more of the resulting parcels was transferred, the amount of the tax lien on each parcel is the amount of the lien on the original parcel, as it existed on January 1, 2021, as shown in this advertisement. This list includes all properties in Orange County. This, the 23 day of March 2022. Nancy T. Freeman Orange County Consolidated City-County Tax Collector