HomeMy WebLinkAboutAgenda 08-26-2025; 8-b - Tax Collector’s Annual Settlement for Fiscal Year 2024-25 1
ORANGE COUNTY
BOARD OF COMMISSIONERS
ACTION AGENDA ITEM ABSTRACT
Meeting Date: August 26, 2025
Action Agenda
Item No. 8-b
SUBJECT: Tax Collector's Annual Settlement for Fiscal Year 2024-25
DEPARTMENT: Tax Administration
ATTACHMENT(S): INFORMATION CONTACT:
Resolution Nancy T. Freeman, Director,
2025 Order to Collect 919-245-2735
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 2024-2025, approve by resolution the accounting thereof, and upon acceptance of
the reports, issue the Order to Collect for Fiscal Year 2025-2026.
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 2024-2025.
For the fiscal year ended June 30, 2025, Orange County's overall current year tax collection
percentage was 99.35%, which is lower than previous years. Staff attributes this to staffing
changes that affected the Collections division. One experienced permanent staff member moved
to another County department, another temporarily was not availeble due to extended leave, and
another very capable temporary staff member was no longer worked for the County. Staff expects
to see this percentage rate increase for tuture years as one staff member returns to work and new
staff are fully trained. In comparison, the average overall collection rate for the prior three years
is 99.5%.
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
2024-2025 current year tax collection percentage for real property was 99.34%, and personal
property was 97.5%, 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 (Vehicle Tax System (VTS) Registered Motor Vehicles) was 99.89%.
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.
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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
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 2024-2025 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 2024-2025
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 2024-2025, the tax collector
was charged with collecting remaining taxes from the years 2014-2023, in addition to
current year 2024 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 2024-2025.
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 2024 taxes at the
beginning of this fiscal year.
4. Tax Uncollectable Relief: information on 2015 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 emergency medical
services (EMS)ambulance bills from January 1 through December 31, 2019. It is requested
that the Board approve the write-off of these bills.
6. Report of Unpaid Taxes: a list of 2024 delinquent property tax accounts as of June 30,
2025. 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.
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ALIGNMENT WITH STRATEGIC PLAN: This item supports:
• MISSION STATEMENT — Orange County is a visionary leader in providing governmental
services valued by our community, beyond those required by law, in an equitable,
sustainable, innovative and efficient way.
• GUIDING PRINCIPLE — STEWARDSHIP AND ADVOCACY
We make proactive data supported decisions and advocate to local, state and Federal
governments in response to our community's needs in a way that best utilizes our
resources.
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;
• Approve, authorize the Chair to sign, and issue the Order to Collect to the Tax Collector
for Fiscal Year 2025-2026; and
• Approve and direct the Tax Collector to release debts charged including 2019 EMS
ambulance bills and 2015 ad valorem personal property tax and fee bills.
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RES-2025-037
RESOLUTION APPROVING THE
TAX COLLECTOR'S ANNUAL SETTLEMENT
FOR THE CURRENT YEAR 2024
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 2024 Tax Accounts
2. Settlement of Prior Year Tax Accounts (2014-2023)
3. Tax Collector's Report of 2024 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 on Uncollectable EMS Ambulance Bills Through December 31, 2019
7. Report on Uncollectable Personal Property Bills for 2015
8. Tax Collectors Accounts Receivable
ADOPTED this the 26th day of August, 2025.
Jamezetta Bedford
Chair, Board of County Commissioners
Attest:
Clerk to the Board of County Commissioners
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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 2015 through 2024 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 2015
through 2025 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 26t" day of August, 2025.
Jamezetta Bedford
Chair, Board of County Commissioners
Attest:
Clerk to the Board of County Commissioners
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Settlement for 2024 Tax Accounts
i Orange County,Fire and Special Districts
Towns of Carrboro,Chapel Hill,Hillsborough,Mebane and City of Durham
for Fiscal Year 2024-2025
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 179,120,882.07 34,043,391.46 15,743.477,72 50,392,922.66 8,925,313.97 2,783,271.93 86,010.18 291,095,269.99
Adjusted Levy-Personal 10,290,517.54 531,537.21 1,903,202.27 549,655.61 983,750.20 17,382.97 14,276,045.80
Adjusted Levy-Motor Vehicles 2,190.16 - 418.49 - - - 2.608.65
Adjusted Levy--Personal&Motor Vehicles 1,386,116.42 1,386,116.42
Adjusted Levy-Vehicle Fees
Adjusted Levy-VTS Registered Motor Vehicles 15,301.357,82 2,719,89114 1,866,189.60 3,800,577.44 1,060,309.55 218,044.54 4,930.31 24,971,302.40
Interest 8 Penalties 340.540.57 54,30T63 15,994.55 76.239.55 18,372.22 10,080.37 71.65 515.599.54
Total 205,055,488.16 38,203,701.66 18,157,199.08 56,173,360.41 10,553,651.35 3,995,147.04 108,395.11 332,246,942.80
CREDITS
Real Uncollected 1,181,708.32 209,049,87 42.510.73 248.798.32 53,863.53 6,582.54 - 1,742,513.31
Personal Uncollected 257.385.94 13.831.57 48,365.26 12,45D.57 3,101.62 335,134.96
Motor Vehicles Uncollected 71.32 - - - - 71.32
Personal&Motor Vehicles Uncollected 41,725.83 41,725.83
Motor Vehicle Fees Uncollected -
VTS Registered Motor Vehicles Uncollected 16,773.82 3.499.62 7,724.33 2,173.17 112.70 131,21 - 30.414.85
VT5 Registered Motor Vehicles Cash Deposited 15,284,584.00 2,716,393.52 1,858,465.27 3,798,404.27 1,060,196.85 217.913.33 4,930.31 24,940,887.55
Cash Deposited 158,314,964,76 35,233,032.81 18,234,667.18 52,075,619.39 9,427,027.70 3,767,418.34 103,464.80 305,156,194.98
Total 205,055,488.16 38,203,701.65 18,157,199.08 56,173,360.41 10,553,651.35 3,995,147.04 108,395.11 332,246,942.80
COLLECTION CREDIT
Cash Deposited 203,699,548.76 37,949,426.33 18,093,132.45 55,874,023.66 10,487,224.55 3,985,331.67 108,395.11 330,097,082.53
Prop Tax Appeals Pending Credit -
Total Collection Credit 203,599,548.76 37,949,426.33 18,093,132.45 55,874,023.66 10,487,224.55 3,985,331.67 108,395.11 330,097,082.53
COLLECTION PERCENTAGE
Real 99,34% 99.39% 99 7a% 99.51% 99.40% 99.76% 100.00%
Personal 97.5G% 97,40% 97.46% 97.73% 99.68% 100.GO%
Motor Vehicles 96,74%
Personal&Motor Vehicles 97,50% 96.99%
Motor Vehicle Fees
VTS Registered Motor Vehicles 99.89% 99-87% 99.59% 99.94% 99.99% 99.94% 100.00°%
Total 99.29% 99.42% 99,G5% 99.47% 99,37% 99.75% 100.GG%
Collection Percentage Reported in the CAFR and to the LGC 0 11,
Cambned ca.niy.R.&sp.6a1 orsrnO Overall Collection 99.35%
Nancy T.Freeman,Tax Collector for Orange County,Towns of Carrbor Hill,Hlllsbor I*bane and City of Durham,and applicable fire/special districts,being duly appointed,respectfully
reports that she has made a diligent effort within lt�hee,time permitted by Ilect the taxes du orkrpersons 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�Bay of August,202 Z= n w
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Z +S Nancy T.Freem n,Tax Collector
Notary Public *� My commission expires
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2024 SETTLEMENT OF UNPAID TAXES
FOR THE YEARS 2014-2023 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 3,707,927.46 1,048,768.97 2,659,158.49 237,691.76
Cedar Grove Fire 16.618.27 4,967.33 11,650.94 1,163.08
Greater Chapel Hill Fire 40.44 5.92 34.52 0.24
Damascus Fire 131.50 52.08 79.42 2.57
Efland Fire 37,211.99 11,049.14 26,162.85 2,240.56
Eno Fire 16,969,43 3,795.80 13,173,63 948.07
Little River Fire 11,257,58 2,511.30 8,746.28 328.45
New Hope Fire 18,647.89 4,197.10 14,450.79 1,037.13
Orange Rural Fire 50,734.83 14,679.41 36,055.42 3,075.05
Orange Grove Fire 16,127.29 5,033.70 11,093.59 945.82
South Orange Fire 22,984.94 6,331.18 16,653.76 1,079.37
Southern Triangle Fire 4,050.47 791.66 3,258.81 143.09
White Cross Fire 51,793.65 7,623.77 44,169.88 1,440.63
CH Carrboro School District 396,159.07 121,100.02 275.059.05 27,283.23
Total County, Fire, and Special Districts 4,350,654.81 1,230,907.38 3,119,747.43 277,379.05
Town of Carrboro Real 178,773,87 76,011.28 102,762.59
Personal Property and Motor Vehicle 46,343.81 8,334.63 38,009.18
Total 225,117.6 B 84,345.91 140,771.77 24,628.53
Town of Chapel Hill Real 434,552.68 175,102.19 259,450.49
Persona! Property and Motor Vehicle 137,543.46 17,697.75 119,845.71
Chapel Hill Downtown Revitalization 4,857.51 451.32 4,406.19
Total 576,953.65 193,251.26 383,702.39 39,260.99
Town of Hillsborough Real 175,199.38 47,699.47 127,499.91
Personal Property and Motor Vehicle 29,748,87 7,023.04 22,725.83
Total 204,948.25 54,722.51 150,225.74 15,253.35
Town of Mebane Real 8,864.95 2,823.03 6,041.92
Personal Property and Motor Vehicle 9,969.65 1,201.19 8,768.46
Total 18,834.60 4,024.22 14,810.38 1,001.36
City of Durham Real 5,188.84 2.594.42 2,594,42
Personal Property and Motor Vehicle 53.88 26.86 27.02
Total 5,242.72 2,621.28 2,621.44 482.16
Nancy T. Freeman,Tax Collector for Orange County, Towns of Carrboro, Chapel Hill, Hillsborough, Mebane, City of Durham, and applicable firelspecial districts, being duly appointed,
respectfully reports, in accordance with G.S. 105-373(b),the am �tog9maining unpaid for years 2014 through 2023,that she has made a diligent effort
within the time permitted by law to collect such taxes out of th r9f such taxpayers, or by other means available to her for collection of such taxes.
Sworn and subscribed before me on this the L day of A 2025
Nancy T. F e an, Tax Collector
Notary Dub��4 mission expires r a`
8
2024-2025 Non-Tax Revenue and Miscellaneous Taxes
2024-2025 COLLECTIONS OF NON-TAX REVENUE 2024-2025 COLLECTION OF RENTAL VEHICLE GROSS RECEIPT TAX
FOR MUNICIPALITIES
Emergency Services Ambulance Fees
not inclusive of Medicaid Reimbursement $ 4,843,009.80
Chapel Hill $ 87,595.89
'Medicaid Reimbursement for Emergency Services $ 85,124.00
Hillsborough $ 1,613.59
Beer&Wine Licenses $ 12,270.00
Mebane $ 764.97
Rental Vehicle Gross Receipts Tax $ 98,157.42
TOTAL $ 89,974.45
Emergency Mgmt Collection $ 26,162.30
(all other charges but ambulance)
2024-2025 COLLECTION OF FEES FOR MUNICIPALITIES
Efland Sewer Loan Collection $ 862.60
Solid Waste Programs Fee Collection $ 9,461,653.59 Chapel Hill Stormwater $ 2,762,868.29
Waste Center Fee Collection $ 434.03 Carrboro Stormwater $ 1,108,279.41
3R Fee Collection $ 1,206.97 Hillsborough Stormwater $ 879,808.70
Occupancy Tax Collection $ 2,225,316.04 Hillsborough Waterstone Assessment $ 24,004.75
TOTAL $ 16,754,196.75 TOTAL $ 4,774,961.15
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 2024 Tax Accounts and Settlement
for Unpaid Taxes for the Years 2014-2023
Fiscal Year 2024-2025 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 2024 Tax Accounts See Settlement for Unpaid Taxes for the Years 2014-2023
City of Durham, Motor Vehicle Taxes See Settlement for 2024 Tax Accounts See Settlement for Unpaid Taxes for the Years 2014-2023
City of Durham,Motor Vehicle Tag Fees See Settlement for 2024 Tax Accounts See Settlement for Unpaid Taxes for the Years 2014-2023
g
ORANGE COUNTY
NORTH CAROLINA
TAX OFFICE
Nancy T. Freeman, Tax Administrator 1228 S. Churton Street, Hillsborough,NC 27278 1919.245.2100
State of North Carolina
County of Orange
TAX COLLECTOR'S REPORT
OF MINIMAL PROPERTY TAX BILLS
Fiscal Year 2024-2025
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 2,462.
The total amount of taxes waived is $2,285.96.
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Nancy T. Fr eman
Orange County Tax Collector/Administrator
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the 131h day of August 2025. aWy�Notary Public ��
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10
ORANGE COUNTY
NORTH CAROLINA
TAX OFFICE
Nancy T. Freeman, Tax Administrator 1228 S. Churton Street, Hillsborough,NC 27278 919.245.2100
State of North Carolina
County of Orange
Tax Collector's Report of FY 2024-2025
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 2024 real and personal property as of July 1, 2025, is $2,078,738.10.
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Nancy T. reeman
Orange County Tax Collector
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Sworn to and subscribed before me this ��� ► r �,�
Theoday of August 2025. 1 R
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Notary Public fillets;/
My Commission expires �aC��
11
SUMMARY OF 2015 PROPERTY TAX FOR RELEASE OF COLLECTING PROPERTY TAX AND FEE DEBTS
YEAR RMV* INDIVIDUAL BUSINESS FEE ONLY GRAND TOTAL
2015 22.83 9,305.62 10,063.16 16,770.71 $ 36,162.32
NOTE: These write-offs include all unsecured taxes for 2015. 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.
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EMS Ambulance Bill Uncollectable Report from 12/01/2019
to 12/31/2019
Private Insurance $8,445.22
Patient/Self Pay $928,392.02
Medicare $1,073.75
Total AR Due: $937,910.99