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HomeMy WebLinkAboutAgenda - 09-05-2024; 8-e - Tax Collector’s Annual Settlement for Fiscal Year 2023-24 1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 5, 2024 Action Agenda Item No. 8-e SUBJECT: Tax Collector's Annual Settlement for Fiscal Year 2023-24 DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Nancy T. Freeman, Director, Resolution 919-245-2735 2024 Order to Collect Reports (7) 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 for Fiscal Year 2023-2024, approve by resolution the accounting thereof, and upon acceptance of the reports, issue the Order to Collect for Fiscal Year 2024-2025. 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 2023-2024. For the fiscal year ended June 30, 2024, Orange County's overall current year tax collection percentage was 99.54%. This collection rate is higher than the previous year, and an indicator of a successful year for the Collections staff. In comparison, the average overall collection rate for the prior three years is 99.43%. 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 2023-2024 current year tax collection percentage for real property was 99.53%, and personal property was 97.56%, 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 99.91%. 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, the Board designates said list to be entered into the minutes. The tax claims are not 2 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 2023-2024 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 2023-2024 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 2023-2024, the tax collector was charged with collecting remaining taxes from the years 2013-2022, in addition to current year 2023 taxes. Additional reports are included for review by the governing board: 1. Miscellaneous Collections: provides details of all other miscellaneous revenue charged to the Tax Collector for collection during fiscal year 2023-2024. 2. Minimal Tax Bills: 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. 3. Accounts Receivable: provides accounts receivable information for 2023 taxes at the beginning of this fiscal year. 4. Tax Uncollectable Relief: information on 2014 ad valorem property tax and fee debts owed to Orange County. These bills are in excess of 10 years old and are no longer collectable. It is requested that the Board approve the write-off of these bills. 5. EMS Ambulance Uncollectable Relief: information on uncollectable EMS ambulance bills from January 1 through December 31, 2018. It is requested that the Board approve the write-off of these bills. 6. Report of Unpaid Taxes: a list of 2023 delinquent property tax accounts as of June 30, 2024. It is a lengthy document provided to the Clerk by email. FINANCIAL IMPACT: There is no financial impact associated with this item. The write-off of the tax bills and EMS ambulance bills also has no impact as these accounts have been adjusted off the County's accounts receivable as part of the allowance of doubtful accounts computation. ALIGNMENT WITH STRATEGIC PLAN: There are no Orange County Strategic Plan Goals applicable to this item. RECOMMENDATION(S): The Manager recommends that the Board: 3 • 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; • Approve, authorize the Chair to sign, and issue the Order to Collect to the Tax Collector for Fiscal Year 2024-2025; and • Approve and direct the Tax Collector to release debts charged including 2018 EMS ambulance bills and 2014 ad valorem personal property tax and fee bills. 4 RES-2024-045 RESOLUTION APPROVING THE TAX COLLECTOR'S ANNUAL SETTLEMENT FOR THE CURRENT YEAR 2023 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 2023 Tax Accounts 2. Settlement of Prior Year Tax Accounts (2013-2022) 3. Tax Collector's Report of 2023 Unpaid Taxes 4. Tax Collector's Report of Minimal Property Tax Bills 5. Report of Collections of Non-Tax Revenue and Miscellaneous Taxes 6. Report of Uncollectable EMS Ambulance Bills Through December 31, 2018 7. Report of Uncollectable Personal Property Bills Through December 31, 2018 8. Tax Collectors Accounts Receivable ADOPTED this the 5th day of September, 2024. Jamezetta Bedford Chair, Board of County Commissioners Attest: Clerk to the Board of County Commissioners 5 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 2014 through 2023 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 2014 through 2024 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 5th day of September, 2024. Jamezetta Bedford Chair, Board of County Commissioners Attest: Clerk to the Board of County Commissioners 6 Settlement for 2023 Tax Accounts Orange County,Fire and Special Districts Towns of Carrboro,Chapel Hill,Hillsborough,Mebane and City of Durham for Fiscal Year 2023.2024 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-Beal 170,129,317.51 33,135,177.65 15.656,204,94 47,986,778.67 8,461,374.95 2,435,030.21 80,466.34 277,884,340.27 Adjusted Levy-Personal 8,537,380.57 538,110.07 1,847,390.21 501,300.81 509,083.64 20,006.02 11,953,271.32 Adjusted Levy-Motor Vehicles 818.60 - 145,60 - 904.20 Adjusted Levy--Persona(&Motor Vehicles 1,298,802.14 1,298,802.14 Adjusted Levy-Vehicle Fees Adjusted levy-VTS Registered Motor Vehicles 13,55%572.92 2,389,463,00 1,756,471.82 3,339,216,01 992,157.57 195,827.56 3,774.87 22,238,483.75 Interest&Penalties 338,782.37 64,978.88 16,404.32 72,421,49 19,523.78 1,698.69 2,140.95 604,950.48 Total 192,564,871.97 38,878,421.67 17,966,191.15 53,246,951.98 9,9740357.11 3,144,640.10 106,378.18 313,880,812.16 CREDITS Real Uncollected 809,618.94 141,722.72 36,998.82 117,095.00 49,537,46 2,378,15 1,297.21 1,158,648.30 Personal Uncollected 200,470.11 10,612.83 39,533,40 10,582.67 1,582.35 2.03 262,783.39 Motor Vehicles Uncollected - - - - - Personal&Motor Vehicles Uncollected 34,902.70 34,902.70 Motor Vehicle Fees Uncollected VTS Registered Motor Vehicles Uncollected 11,751.13 2,280.66 4,690,09 1,874.40 673.27 21,269,55 VTS Registered Motor Vehicles Cash Deposited 13,546,821,79 2,387,182.34 1,751,781.73 3,337,341,61 991,484.30 198,827.56 3,774,87 22,217,214.20 Cash Deposited 177,996,210.00 34,312,333.25 16,162,107.68 49,750,107,67 8,922,079.41 2,941,862.04 101,279.08 290,185,969.03 Total 192,564,871.97 36,878,421.67 17,966,191.15 53,246,961.98 9,974,357.11 3,144,640.10 106,363.19 313,880,787.17 COLLECTION CREDIT Cash Deposited 191,543,031.79 36,699,516.69 17,913,889.41 53,087,449.18 9,913,663.71 3,140,679.60 105,063.96 312,403,183,23 Prop Tax Appeals Pending Credit 14,816.85 3,387.46 9,726.75 27,931.06 Total Collection Credit 191,557,048,64 36,702,903.05 17,913,889.41 53,097,175.93 9,913,663.71 3,140,679.60 105,053.95 M2,431,114.29 COLLECTION PERCENTAGE Real 99.53% 99.58% 99.76% 99,78% 99.41% 99.90% 98,39% Personal 97.65% 98,03% 97.86% 97,89% 99.69% 99.99% Motor Vehicles 100 00% Personal&Motor Vehicles 97.65% 97.31% Motor Vehicle Fees VTS Registered Motor Vehicles 99.91% 99.90% 99,73% 99.94% 99.93% 100,00% 100.00% Total 99.48% 99.60% 99.71% 99,72% 99.39% 99.87% 98.75% Collection Percentage Reported In the CAFR and to the LGC Combined County,Fhe&Speolal District Overall Collection 99.54% Nancy T.Freemen,Tax Collector for Orange County,Towns of Carrboro,Chapel Hill,H€(Isho (,('Mebane and City of Durham,and applicable fire/special districts,being duly appointed,respectfully reports that she has made a diligent effort within the time permitted by law to collect t%JW� Kr# *Mr sons listed out of their personal property and by other means available to her for collection of such taxes. Sworn to and subscribed before me this the day of August,2024. `\`�����G lV 14Notary Public / per: Nancy T.Fr an,Tax Collector —J Orange X a. .__ _. Notary Public CoUnty — My commission expires My Comm, Exp. CA f �rl00����� 2023 SETTLEMENT OF UNPAID TAXES FOR THE YEARS 2013-2022 7 Orange County,Fire and Special Districts Towns of Carrboro,Chapel Hill,Hillsborough,Mebane and City of Durham Adjusted Levy Total Uncollected Balance Interest Collections (Accounts Receivable) Collected Orange County 3,594,605.09 924,819.50 2,669,785.59 Cedar Grove Fire 15,630.95 4,735.56 10,895.39 Greater Chapel Hill Fire 88.65 - 88.65 Damascus Fire 1,581.03 785.92 795.11 Efland Fire 33,757.12 9,669.22 24,087.90 Eno Fire 17,854.22 4,271.22 13,583.00 Little River Fire 7,414.63 1,400.33 6,014.30 New Hope Fire 22,872.08 7,825.51 15,046.57 Orange Rural Fire 44,230.31 11,529.71 32,700.60 Orange Grove Fire 23,257.59 8,658.92 14,598.67 South Orange Fire 18,679.51 4,106.33 14,573.18 Southern Triangle Fire 6,915.60 2,825.80 4,089.80 White Cross Fire 47,717.38 7,904.03 39,813.35 CH Carrboro School District 358,566.48 86,518.08 272,048.40 Total County, Fire,and Special Districts 4,193,170.64 1,075,050.13 3,118,120.51 214,823.70 Town of Carrboro Real 166,966.22 50,305.17 116,661.05 Personal Property and Motor Vehicle 51,746.72 8,206.39 43,540.33 Total 218,712.94 58,511.56 160,201.38 6,393.96 Town of Chapel Hill Real 342,321.32 93,862.20 248,459.12 Personal Property and Motor Vehicle 126,769.23 15,138.07 111,631.16 Chapel Hill Downtown Revitalization 6,056.56 1,051.77 5,004.79 Total 475,147.11 110,052.04 365,096.07 19,027.59 Town of Hillsborough Real 142,939.23 31,322.40 111,616.83 Personal Property and Motor Vehicle 30,999.68 8,638.55 22,361.13 Total 173,938.91 39,960.96 133,977.96 6,916.82 Town of Mebane Real 5,461.23 888.34 4,572.89 Personal Property and Motor Vehicle 10,637.78 1,713.87 8,923.91 Total 16,099.01 2,602.21 13,496.80 420.30 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 remaining unpaid for years 2013 through 2022,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. Sworn and subscribed before me on this the day of August,2024 �� J -+Aolftea� Nancy T. ��GI� f}y ax Collector Notary Public O ® Orange Y. Notary Public My commission expires 2tp6aler -140� County M Comm. Exp. �V, ®���iir �CAF��0;�\*����� 8 2022-2023 Non-Tax Revenue and Miscellaneous Taxes 2023-2024 COLLECTIONS OF NON-TAX REVENUE 2023-2024 COLLECTION OF RENTAL VEHICLE GROSS RECEIPT TAX FOR MUNICIPALITIES Emergency Services Ambulance Fees not inclusive of Medicaid Reimbursement $ 4,510,520.70 Chapel Hill $ 101,557.93 'Medicaid Reimbursement for Emergency Services $ 67,660.00 Hillsborough $ 1,494.33 Beer&Wine Licenses $ 13,005.00 Mebane $ 304.02 Rental Vehicle Gross Receipts Tax $ 111,246.26 TOTAL $ 103,356.28 Emergency Mgmt Collection $ 45,319.55 (all other charges but ambulance) 2023-2024 COLLECTION OF FEES FOR MUNICIPALITIES Efland Sewer Loan Collection $ 474.20 Solid Waste Programs Fee Collection $ 9,545,518.08 Chapel Hill Stormwater $ 2,796,403.15 Waste Center Fee Collection $ 425.63 Carrboro Stormwater $ 1,003,704.35 313 Fee Collection $ 631.71 Hillsborough Stormwater $ 747,710.83 Occupancy Tax Collection $ 2,174,929.58 Hillsborough Waterstone Assessment $ 413,218.69 TOTAL $ 16,469,730.71 TOTAL $ 4,961,037.02 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 2023 Tax Accounts and Settlement for Unpaid Taxes for the Years 2013-2022 Fiscal Year 2023-2024 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 2023 Tax Accounts See Settlement for Unpaid Taxes for the Years 2013-2022 City of Durham,Motor Vehicle Taxes See Settlement for 2023 Tax Accounts See Settlement for Unpaid Taxes for the Years 2013-2022 City of Durham,Motor Vehicle Tag Fees See Settlement for 2023 Tax Accounts See Settlement for Unpaid Taxes for the Years 2013-2022 9 ORANGE COUNTY TAX OFFICE Nancy T.Freeman, Tax Administrator 1 228 S. Churton Street,Hillsborough,NC 27278 919.245.2100 State of North Carolina County of Orange TAX COLLECTOR'S REPORT OF MINIMAL PROPERTYTAX BILLS Fiscal Year 2023-2024 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 [seep 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 2,625. The total amount of taxes waived is $2,589.88. �fl OAX-W 1 1,4Aa_olz� Nancy T. eeman Orange County Tax Collector/Administrator Sworn to and subscribed before me this .` '�AN�N�E�� /,���i the�_day of August 2024. �Notary Public'o —+ Orange AZ County My Comm. Exp. '' I �0 Notary Public hCAR,0 r My Commission expires 36 o-a 10 ORANGE CF. TAX OFFICE Nancy T.Freeman, Tax Administrator 1 228 S.Churton Street,Hillsborough,NC 27278 ( 919.245.2100 State of North Carolina County of Orange Tax Collector's Report of FY 2023-2024 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 2023 real and personal property as of July 1, 2024 is $1,428,452.84. V,�OAZ,4� j Nancy T. FLVeeman Orange County Tax Collector Sworn to and subscribed before me this the 1.9't day of August, 2024. Notary Public �p a1 Orange X County � My Comm. Exp. _� .nAll Bl6ilLL._ CABO Notary Public ��°�frrttttuttti��`�� My Commission expires CAVm6e1 11 SUMMARY OF 2014 PROPERTY TAX FOR RELEASE OF COLLECTING PROPERTY TAX AND FEE DEBTS YEAR RMV* INDIVIDUAL BUSINESS FEE ONLY GRAND TOTAL 2014 1,329.39 9,478.46 26,395.59 4,394.94 $ 41,598.38 NOTE: These write-offs include all unsecured taxes for 2014. In addition, solid waste fees are inlcuded in the writeoffs. Secured (real property) taxes are not included in the write-offs. * Registered Motor Vehicle (RMV) billing was handled by the County Tax Office until late 2013, at which point the billing and collection was moved to the State level. These amounts will dwindle in future reports. 12 EMS Ambulance Bill Uncollectable Report through December 31, 2018 Balance Private Insurance $6,991 .63 Patient/Self Pay $989,030.29 Medicare $163.35 Grand Total $9969185.27 Trip Date is between 01/01/2018 and 12/31/2018.