HomeMy WebLinkAboutAgenda - 09-05-2023; 8-e - Tax Collectors Annual Settlement for Fiscal Year 2022-23 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: September 5, 2023
Action Agenda
Item No. 8-e
SUBJECT: Tax Collector's Annual Settlement for Fiscal Year 2022-23
DEPARTMENT: Tax Administration
ATTACHMENT(S): INFORMATION CONTACT:
Resolution Nancy T. Freeman, Director,
Reports (5) 919-245-2735
2023 Order to Collect
Copy of Report of Delinquent Property
Taxes (provided to Clerk by email)
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 2023-2024.
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, Mebane, and Durham
during Fiscal Year 2022-2023.
For the fiscal year ended June 30, 2023, Orange County's overall current year tax collection
percentage was 99.46%. This collection rate is an indicator of a successful year for the Collections
staff. In comparison, the average overall collection rate for the prior three years is 99.26%.
The current overall collection percentage can be broken down further into three property
classifications: real property, personal property, and motor vehicles. Orange County's fiscal year
2022-2023 current year tax collection percentage for real property was 99.50%, and personal
property was 98.04%, 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 99.88%.
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. With approval of the
resolution,n the Board designates said list to be entered into the minutes. The tax claims are not
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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 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 2022-2023 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 2022-2023
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 2022-2023, the tax collector
was charged with collecting remaining taxes from the years 2012-2021, in addition to
current year 2022 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 2022-2023.
• 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 2022 taxes at the beginning
of the 2023 fiscal year.
• The final report is a copy of the delinquent property tax accounts as of June 30, 2023. It is
a lengthy document provided to the Clerk by email.
For Tax Collectors Settlements in future years, there will be two additional reports. The first will
be a report to inform the Board and to request approval to write-off one year's ad valorem property
tax and fee debts owed to Orange County in excess of 10 years that are no longer collectable.
The second will be a report to inform the Board and to request approval to write-off one year's
uncollectable ambulance bills.
For this current year, separate September 5, 2023 agenda items are concurrently provided for
Board approval to write off several years of ad valorem property tax and fee debts in excess of 10
years that are no longer collectable and to write off several years of uncollectable ambulance bills.
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.
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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 2023-2024.
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RES-2023-055
RESOLUTION APPROVING THE
TAX COLLECTOR'S ANNUAL SETTLEMENT
FOR THE CURRENT YEAR 2022
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 2022 Tax Accounts
2. Settlement of Prior Years (2012-2021) Tax Accounts
3. Tax Collector's Report of 2022 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 5th day of September, 2023.
Jamezetta Bedford
Chair, Board of County Commissioners
Attest:
Clerk to the Board of County Commissioners
Settlement for 2022 Tax Accounts 5
Orange County,Fire and Special Districts
Towns of Carrboro,Chapel Hill,Hillsborough,Mebane and City of Durham
for Fiscal Year 2022-2023
Orange Fire&Special Town of Town of Town of Town of City of Grand
County Districts Carrboro Chapel Hill Hillsborough Mebane Durham Total
CHARGES
Adjusted Levy-Real 166,067,288.65 30,140,566.65 15,599,539.50 43,370,972.77 8,214,118.64 2,604,637.25 80,575.70 266,077,699.16
Adjusted Levy-Personal 7,797,456.33 441,668.64 1,599,335.18 452,450.67 543,172.22 5,605.10 10,839,688.14
Adjusted Levy-Motor Vehicles 1,203.56 73.52 - - 133.20 - 1,410.28
Adjusted Levy--Personal&Motor Vehicles 1,108,013.86 1,108,013.86
Adjusted Levy-Vehicle Fees -
Adjusted Levy-VTS Registered Motor Vehicles 12,618,424.25 2,114,332.28 1,712,936.42 3,035,320.01 909,992.50 194,313.71 2,237.11 20,587,556.28
Interest&Penalties 328,122.99 53,191.14 18,946.30 65,619.35 17,160.19 1,102.88 115.98 484,258.83
Total 186,812,495.78 33,416,103.93 17,773,164.38 48,071,247.31 9,593,722.00 3,343,359.26 88,533.89 299,098,626.55
CREDITS
Real Uncollected 837,339.15 137,676.78 51,634.17 106,320.24 38,313.76 2,823.41 1,297.21 1,175,404.72
Personal Uncollected 152,846.92 12,950.28 23,032.99 8,319.06 1,888.52 - 199,037.77
Motor Vehicles Uncollected - - - - - - -
Personal&Motor Vehicles Uncollected 28,103.15 28,103.15
Motor Vehicle Fees Uncollected -
VTS Registered Motor Vehicles Uncollected 15,521.94 2,841.81 4,411.01 2,186.90 421.07 - - 25,382.73
VTS Registered Motor Vehicles Cash Deposited 12,602,902.31 2,111,490.47 1,708,525.41 3,033,133.11 909,571.43 194,313.71 2,237.11 20,562,173.55
Cash Deposited 173,203,885.46 31,135,991.72 15,995,643.51 44,906,574.07 8,637,096.68 3,144,333.62 84,999.57 277,108,524.63
Total 186,812,495.78 33,416,103.93 17,773,164.38 48,071,247.31 9,593,722.00 3,343,359.26 88,533.89 299,098,626.55
COLLECTION CREDIT
Cash Deposited 185,806,787.77 33,247,482.19 17,704,168.92 47,939,707.18 9,546,668.11 3,338,647.33 87,236.68 297,670,698.18
Prop Tax Appeals Pending Credit -
Total Collection Credit 185,806,787.77 33,247,482.19 17,704,168.92 47,939,707.18 9,546,668.11 3,338,647.33 87,236.68 297,670,698.18
COLLECTION PERCENTAGE
Real 99.50% 99.54% 99.67% 99.75% 99.53% 99.89% 98.39%
Personal 98.04% 97.07% 98.56% 98.16% 99.65% 100.00%
Motor Vehicles 100.00%
Personal&Motor Vehicles 98.04% 97.46%
Motor Vehicle Fees
VTS Registered Motor Vehicles 99.88% 99.87% 99.74% 99.93% 99.95% 100.00% 100.00%
Total 99.46% 99.56% 99.61% 99.73% 99.51% 99.86% 98.53%
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Collection Percentage Reported in the CAFR and to the LGC \ �nb\\ � Overall Collection 99.52%
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Nancy T. Freeman,Tax Collector for Orange County,Towns of Carrboro,ChaQe!lill, Hi or",rough, McWrE and City of Durham,and applicable fire/special districts,being duly appointed, respectfully
reports that he has made a diligent effort within the time permitted by law to co3e4athe tales d omp ans listed out of their personal property and by other means available to him for collection of such taxes.
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Sworn to and subscribed before me this the day of August,2023. ���'' J���
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SETTLEMENT OF UNPAID TAXES
FOR THE YEARS 2012-2021
Orange County,Fire and Special Districts 6
Towns of Carrboro,Chapel Hill,Hillsborough, Mebane and City of Durham
Adjusted Levy Total Uncollected Balance Interest
Collections (Accounts Receivable) Collected
Orange County 4,508,741.96 1,271,348.17 3,237,393.79
Downtown Revitalization 7,549.94 2,135.24 5,414.70
Cedar Grove Fire 16,407.66 4,765.28 11,642.38
Greater Chapel Hill Fire 317.57 113.21 204.36
Damascus Fire 1,649.85 733.26 916.59
Efland Fire 40,266.58 12,827.87 27,438.71
Eno Fire 23,922.15 7,058.04 16,864.11
Little River Fire 11,436.70 3,962.28 7,474.42
New Hope Fire 18,289.53 4,649.70 13,639.83
Orange Rural Fire 57,647.62 18,633.00 39,014.62
Orange Grove Fire 19,216.73 5,392.82 13,823.91
South Orange Fire 28,525.76 9,672.14 18,853.62
Southern Triangle Fire 6,519.65 2,481.07 4,038.58
White Cross Fire 50,110.75 9,846.54 40,264.21
CH Carrboro School District 444,606.18 126,628.06 317,978.12
Total County, Fire, and Special Districts 5,235,208.63 1,480,246.68 3,754,961.95 315,206.63
Town of Carrboro Real 309,965.02 121,871.42 188,093.60
Personal Property and Motor Vehicle 80,735.27 14,626.37 66,108.90
Total 390,700.29 136,497.79 254,202.50 34,288.28
Town of Chapel Hill Real 357,406.67 105,746.25 251,660.42
Personal Property and Motor Vehicle 183,174.93 17,273.31 165,901.62
Total 540,581.60 123,019.56 417,562.04 17,822.22
Town of Hillsborough Real 238,131.85 81,192.67 156,939.18
Personal Property and Motor Vehicle 34,220.74 5,926.75 28,293.99
Total 272,352.59 87,119.42 185,233.17 13,534.53
Town of Mebane Real (17,072.71) (19,241.14) 2,168.43
Personal Property and Motor Vehicle 9,492.19 845.27 8,646.92
Total (7,580.52) (18,395.87) 10,815.35 124.12
Nancy T. Freeman,Tax Collector for Orange County,Towns of Carrboro, Chapel Hill, Hillsborough, Mebane, City of Durham, and applicable fire/special districts, being duly appointed,
respectfully reports, in accordance with G.S. 105-373(b),the amount of taxes rQVjq�ipg unpaid for years 2012 through 2021, that she has made a diligent effort
within the time permitted by law to collect such taxes out of the personal `� �F t�x payers, or by other means available to her for collection of such taxes.
Sworn and subscribed before me on this the=y 7 day of August, 2023
Z Nancy T. FWdman, Tax Collector
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2022-2023 Non-Tax Revenue and Miscellaneous Taxes
2022-2023 COLLECTIONS OF NON-TAX REVENUE
Emergency Services Ambulance Fees 2022-2023 COLLECTION OF RENTAL VEHICLE GROSS RECEIPT TAX
not inclusive of Medicaid Reimbursement $ 2,773,585.77 FOR MUNICIPALITIES
'Medicaid Reimbursement for Emergency Services
(FY2021 Received$718,529 on 9/30/22 and
FY2022 received$461,459) $ 1,179,988.00 Chapel Hill $ 98,049.20
Beer&Wine Licenses $ 11,185.00 Hillsborough $ 1,998.25
Rental Vehicle Gross Receipts Tax $ 109,962.50 TOTAL $ 100,047.45
Emergency Mgmt Collection $ 44,204.44
(all other charges but ambulance)
2022-2023 COLLECTION OF FEES FOR MUNICIPALITIES
Efland Sewer Loan Collection $ -
Solid Waste Programs Fee Collection $ 9,369,233.66 Chapel Hill Stormwater $ 2,832,890.70
Waste Center Fee Collection $ 1,732.24 Carrboro Stormwater $ 993,397.15
313 Fee Collection $ 2,373.98 Hillsborough Stormwater $ 742,078.63
Occupancy Tax Collection $ 1,948,759.24 Hillsborough Waterstone Assessment $ 461,255.68
TOTAL $ 15,441,024.83 TOTAL $ 5,029,622.16
COLLECTIONS OF MISCELLANEOUS AD VALOREM TAXES&MOTOR VEHICLE TAG FEES
Note:The County now collects taxes for the sections of Mebane and Durham in Orange County. All collections information is shown on the Settlement for 2022 Tax Accounts and
Settlement for Unpaid Taxes for the Years 2012-2021
Fiscal Year 2022-2023 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 See Settlement for 2022 Tax Accounts See Settlement for Unpaid Taxes for the Years 2012-2021
City of Durham,Motor Vehicle Taxes See Settlement for 2022 Tax Accounts See Settlement for Unpaid Taxes for the Years 2012-2021
City of Durham,Motor Vehicle Tag Fees See Settlement for 2022 Tax Accounts See Settlement for Unpaid Taxes for the Years 2012-2021
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ORANGE COUNTY
TAX OFFICE
Nancy T. Freeman, Tax Administrator 228 S. Churton Street, Hillsborough, NC 27278 919.245.2100
State of North Carolina
County of Orange
TAX COLLECTOR'S REPORT
OF MINIMAL PROPERTY TAX BILLS
Fiscal Year 2022-2023
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 2,675. The total
amount of taxes waived is $4,456.25.
VA 06q�l j jmg*t�
Nancy T. F an
Orange County Tax Collector/Administrator
Sworn to and subscribed before me this 4V v��
the day of August 23, 2023. «+
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Notary Public
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My Commission expires -> ���
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ORANGE COUNTY
\tWI I ! C."A Ito f I�A
TAX OFFICE
Nancy T. Freeman, Tax Administrator I 228 S. Churton Street, Hillsborough,NC 27278 919.245.2100
State of North Carolina
County of Orange
Tax Collector's Report of FY 2022-2023
Accounts Receivable—Real/Personal Property
Nancy T. Freeman, Tax Collector for Orange County, Towns of Carrboro, Chapel Hill, Hillsborough and
Mebane, City of Durham, 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 2022 real and personal property as of July 1, 2023 is$1,390,964.72.
Nancy T. eman
Orange County Tax Collector
Sworn to and subscribed before me this PON 0v
the 2251 day of August, 2023.
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Notary Public l� AA0401
10 CIE C ```W
My Commission expires
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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, Hillsborough and
Mebane, City of Durham, and applicable Fire Districts
You are hereby authorized, empowered, and commanded to collect the taxes remaining unpaid
as set forth in the 2013 through 2022 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 2013
through 2023 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, City of Durham, 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 5i" day of September 2023.
Jamezetta Bedford
Chair, Board of County Commissioners
Attest:
Clerk to the Board of County Commissioners