Agenda - 08-04-1997 - 8e - Laserfiche WebLink

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S 2 The intent of the Machinery Act was to create a direct relationship of responsibility and accountability between the tax collector and the governing body. The tax collector and no one else is charged by the governing body with personal responsibility for collecting taxes. The annual settlement of the tax collector is based upon this responsibility. North Carolina General Statute 105-373 requires several things of the tax collector and the governing body. First,the tax collector is to furnish two sworn reports to the governing body; one showing a list of real property owners whose taxes remain unpaid for the preceding fiscal year, and one showing a list of personal property owners whose taxes remain unpaid for the previous fiscal year. Upon receiving these lists,the governing body enters into the minutes the names of those persons who owe personal property taxes, declares the taxes to be insolvent, and by resolution designates the list entered into the minutes as the insolvent list to be credited to the tax collector on the settlement report. The decision of the governing body to determine a tax to be insolvent and allow it as a credit in the collector's settlement has no effect on the taxpayer's liability for the tax. The board's determination of insolvency is not a release. The tax claim is not discharged or written off. The reason for making the determination is solely to facilitate making annual settlement with the tax collector. It relieves the tax collector of personal liability. Insolvent accounts are recharged to the collector as delinquent accounts, and the collector has full authority to use levy and garnishment to effect their collection. At this point the collector is to make actual settlement. The report is to show all taxes charged for collection for the previous fiscal year. The tax collector is credited with all sums representing taxes collected and deposited,the principal amount of unpaid taxes on real property, and the principal amount of unpaid taxes on personal property determined to be insolvent. This too shall be entered into the minutes of the governing body. Next,uncollected taxes allowed as credits in the settlement are recharged to the tax collector. Finally,the tax collector makes settlement for all prior years taxes collected, and this settlement is entered into the minutes of the governing body. RECOMMENDATION: The manager recommends that the tax collector's settlement be accepted as reported and entered upon the minutes.