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1 <br /> ORANGE COUNTY <br /> BOARD OF COMMISSIONERS <br /> ACTION AGENDA ITEM ABSTRACT <br /> Meeting Date: September 6, 2016 <br /> Action Agenda <br /> Item No. 6-f <br /> SUBJECT: Relief from Collecting Debts <br /> DEPARTMENT: Tax Administration <br /> ATTACHMENT(S): INFORMATION CONTACT: <br /> Relief from Collecting Debts Report <br /> Memorandum of Explanation Dwane Brinson, Tax Administrator, <br /> Statutes Regarding Relief from 919-245-2726 <br /> Collecting Debts <br /> PURPOSE: To release ad valorem property tax and fee debts owed to Orange County in <br /> excess of 10 years that are no longer collectible. <br /> BACKGROUND: Under North Carolina General Statute (NCGS) 105-373 (g), the Board of <br /> County Commissioners "...may, in its discretion, relieve the tax collector of the charge of taxes <br /> owed by persons on the insolvent list that are five or more years past due when it appears to the <br /> governing body that such taxes are uncollectible." <br /> Presented as part of this abstract is a listing by year, beginning with 2000 through 2006, of ad <br /> valorem personal property tax and fee bills that have been worked extensively and can no <br /> longer be collected using enforced collection techniques. <br /> NCGS 105-373 (h) speaks to the relief from collection of taxes on classified motor vehicles. To <br /> remain uniform, attached to this abstract is a listing by year, beginning with 2000 through 2006, <br /> of Classified Registered Motor Vehicles tax and fee bills that have been worked extensively and <br /> can no longer be collected using enforced collection techniques. <br /> NCGS 105-378 (a) specifically bars the use of enforced collections unless the procedure was <br /> instituted within 10 years from the date the tax first became due. <br /> After discussion with the Financial Services Department, there is agreement that good <br /> accounting practice would be to release this debt from the charge and system maintained by the <br /> Tax Administration Department. <br /> FINANCIAL IMPACT: There is no impact to the County's balance sheet or fund balance from <br /> releasing the 2000-2006 accounts. Due to the age of these account balances, the accounts <br /> have been adjusted off of the County's accounts receivable balance as part of the allowance for <br /> doubtful accounts (bad debt) computation. The bad debt computation is required pursuant to <br />