Agenda - 09-01-20; 8-e - Tax Collector’s Annual Settlement for Fiscal Year 2019-20

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 1, 2020 Action Agenda Item No. 8-e SUBJECT: Tax Collector's Annual Settlement for Fiscal Year 2019-20 DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Resolution Nancy T. Freeman, Director, Reports (5) 919-245-2735 Order to Collect Report of Delinquent Property Taxes (provided to Deputy Clerk on Flash Drive) PURPOSE: To receive the tax collector's annual settlement on current and delinquent taxes, approve by resolution the accounting thereof, and upon acceptance of the reports, issue the Order to Collect for Fiscal Year 2020-2021. 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 and Mebane during Fiscal Year 2019-2020. For fiscal year ended June 30, 2020, Orange County's overall current year tax collection percentage was 99.15%. The overall collection percentage can be broken down further into three property classifications: real property, personal property, and motor vehicles. Orange County's fiscal year 2019-2020 current year tax collection percentage for real property was 99.19%, personal property was 97.12%, 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 (VTS Registered Motor Vehicles) was 99.84%. 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. There are four sections to the report: business personal property owners, public personal property owners, individual personal property owners and real property owners. By acceptance of the resolution the Board designates said list to be entered into the minutes. The tax claim is 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 Deputy Clerk to the Board for the permanent record of all outstanding tax by property classification.