HomeMy WebLinkAboutAgenda 01-20-2026; 12-3 - Information Item - Tax Collector’s Report – Measure of Enforced Collections 1
Tax Collector's Report: Measure of Enforced Collections (TR-453)
Reporting Period: July-December 2025
Pursuant to North Carolina General Statute§105-366(c),the Tax Collector is required to
report to the Board of County Commissioners on the use of enforced collection remedies
and the amounts collected through those actions.This report summarizes enforced
collection activity for the reporting period and is intended to provide transparency
regarding statutory collection efforts.
Summary of Enforced Collections by Month
Month Total Enforcement Actions Total Funds Collected ($)
July 2025 157 $65,395.16
August 2025 24 $17,950.53
September 2025 960 $351,534.28
October 2025 196 $67,628.20
November 2025 81 $9,078.38
December 2025 44 $126.11
Totals 1,462 $511,712.666
Enforced Collection Actions -July 2025
Enforcement Action Type Number of Actions Funds Collected ($)
Debt Setoff 17 $5,156.75
Monies Garnishment 28 $12,397.99
Wage Garnishment 97 $33,212.20
Bank Garnishment 15 $14,628.22
Enforced Collection Actions -August 2025
Enforcement Action Type Number of Actions Funds Collected ($)
Debt Setoff 13 $1,739.80
Wage Garnishment 9 $7,050.29
Bank Garnishment 2 $9,160.44
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Enforced Collection Actions—September 2025
Enforcement Action Type Number of Actions Funds Collected ($)
Debt Setoff 944 $349,098.17
Monies Garnishment 1 $232.30
Wage Garnishment 13 $1,817.81
Bank Garnishment 2 $386.00
Enforced Collection Actions— October 2025
Enforcement Action Type Number of Actions Funds Collected ($)
Debt Setoff 149 $48,122.23
Monies Garnishment 4 $156.30
Wage Garnishment 40 $18,236.17
Bank Garnishment 3 $1,113.50
Enforced Collection Actions— November 2025
Enforcement Action Type Number of Actions Funds Collected ($)
Debt Setoff 18 $337.08
Monies Garnishment 10 $1,988.95
Wage Garnishment 48 $6,178.25
Bank Garnishment 5 $574.10
Enforced Collection Actions— December 2025
Enforcement Action Type Number of Actions Funds Collected ($)
Debt Setoff 15 $0.00
Monies Garnishment 17 $122.57
Wage Garnishment 12 $3.54
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Definitions For Measure of Enforced Collections
Wage, Rent, Bank, Housing, Monies, Escheats Garnishment/Attachment/Certifications:
NCGS105-368. Procedure for attachment and garnishment. (a)Subject to the provisions of G.S. 105-356
governing the priority of the lien acquired,the tax collector may attach wages and other compensation,
rents, bank deposits,the proceeds of property subject to levy, or any other intangible personal property,
including property held in the Escheat Fund, in the circumstances and to the extent prescribed in G.S.
105-366(b), (c), and (d).
■ Wage garnishments Local governments can attach wages for unpaid property taxes by issuing
an Attachment and Garnishment notice.The notice directs the employer to withhold a portion of the
taxpayer's gross wages, not to exceed 10% per pay period,to pay the debt.Taxpayers are notified at the
same time as the employer and can make payment in full at anytime to stop the garnishment process.
■ Bank attachments Local governments can attach bank accounts to collect delinquent taxes.This
authority allows them to freeze and seize funds in a taxpayer's bank account to satisfy the owed
amount.Taxpayers are notified at the same time as the bank.
■ Rent attachments A rent attachment is directed toward the payments a tenant owes to a landlord who
is delinquent on their taxes.The tax authority notifies the tenant(the "garnishee"), directing them to
send their rent payments to the tax collector instead of the landlord until the past due balance is paid in
full. Property owners are notified at the same time as the renter and can make payment in full at any
time to stop the process. Detailed records of payments are kept for the purpose of updating the
property owner of rents received for their tenants.
■ Monies attachments focus on legal settlements and other proceeds which can be attached to pay
delinquent taxes. Example: a property owner who owns multiple properties with unpaid taxes sells one
of the properties. Proceeds of that sale can be attached and used to pay the property owner's
delinquent taxes. This category includes Housing and Escheats funds attachments.
o Housing funds attachment is issued to the County Housing department to intercept Housing
Choice Voucher(HCV) Program (formerly Section 8 Housing)funds paid to landlords whose
taxes are unpaid.
o Escheats funds attachment is issued to the state to collect funds to pay unpaid property
taxes. "Escheated funds" refer to unclaimed funds that, after a period of dormancy, are
considered abandoned by the holders of the funds,who are required to transfer them to the
state. Examples: uncashed checks, unreturned deposits,forgotten savings account.The
number shown each month represents how many requests were sent to the State for escheated
funds.
NC Debt Setoff Collections
Act NCGS 105A-1. Purposes.The purpose of this Chapter is to establish as policy that all claimant
agencies and the Department of Revenue shall cooperate in identifying debtors who owe money to the
State or to a local government through their various agencies and who qualify for refunds from the
Department of Revenue. It is also the intent of this Chapter that procedures be established for setting off
against any refund the sum of any debt owed to the State or to a local government. Furthermore, it is the
legislative intent that this Chapter be liberally construed so as to effectuate these purposes as far as legally
and practically possible.
NCGS 18C-134. Setoff for debt collection against lottery prizes. (a) Purpose.—The Commission must
establish a debt set-off program by which lottery prize payments may be used to satisfy a debt owed or
collected by a claimant agency that is at least fifty dollars ($50.00).The collection remedy under this
section is in addition to and not in substitution for any other remedy available by law.
Updated October 31,2025
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• NC Debt Setoff Collections Legal process where County uses state tax refund or other state
government payments to collect a delinquent debt owed to the agency. County submits a list of
debtors to the NC Department of Revenue,which then "sets off"the amount of the debt from any
refunds the debtor is due.
Foreclosure§ 105-375. In rem method of foreclosure. (a) Intent of Section.—Proceedings brought under
this section are strictly in rem.This section provides, as an alternative to G.S. 105-374, a simple and
inexpensive method of enforcing payment of taxes necessarily levied,to the knowledge of all persons,for
the requirements of local governments in this State and recognizes, in authorizing this proceeding,that all
persons owning interests in real property know or should know that the tax lien on their real property may
be foreclosed and the property sold for failure to pay taxes.
Updated October 31,2025