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ORANGE COUNTY <br />BOARD OF COMMISSIONERS <br />ACTION AGENDA ITEM ABSTRACT <br />Meeting Date: December 5, 2011 <br />Action Agenda <br />Item No. 5'-~ <br />SUBJECT: Tax Collector's Annual Settlement for Fiscal Year 2010-11 <br />DEPARTMENT: Tax Administration PUBLIC HEARING: (Y/N) No <br />ATTACHMENT(S): INFORMATION CONTACT: <br />Resolution Jenkins S. Crayton, 245-2735 <br />Reports (4) <br />Order to Collect <br />Insolvent Report (provided to Clerk) <br />PURPOSE: To receive the tax collector's annual settlement on current and delinquent taxes, <br />approve the accounting thereof, and upon acceptance of the reports, issue the Orders to <br />Collect for Fiscal Year 2011-2012. <br />BACKGROUND: The reports in the annual settlement provide in detail the collection for the <br />County, all fire and special districts, and the Towns of Carrboro, Chapel Hill, and Hillsborough <br />during Fiscal Year 2010-2011. <br />The overall tax collection percentage is 98.65%. The overall collection percentage has three <br />components: real property, personal property, and motor vehicles. It is reflective of all <br />jurisdictions charged to the collector. <br />The tax collector is required by North Carolina General Statute (NCGS) 105-373 to give an <br />annual settlement to the governing body. It is the intent of the Machinery Act to create a direct <br />relationship of responsibility and accountability between the tax collector and the governing <br />body. <br />NCGS 105-373 requires the tax collector to furnish a sworn report to the governing body <br />showing a list of property owners whose taxes remain unpaid for the preceding fiscal year. <br />There are four sections to the report: business property owners, individual property owners, real <br />property owners, and registered motor vehicle property owners. By acceptance of the <br />resolution, the Board declares the taxes to be insolvent, and designates the list entered into the <br />minutes as the insolvent list to be credited to the tax collector on the settlement report. The <br />Board's determination of insolvency is not a release. The tax claim is not discharged or written <br />off. Insolvent accounts are recharged to the collector as delinquent accounts, and the collector <br />has full authority to use levy and garnishment to effect their collection. A CD has been provided <br />to the Clerk to the Board for the permanent record of all outstanding tax by category. <br />