Agenda - 09-05-2023; 8-g - Relief from Collecting Property Tax and Fee Debts

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1 ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: September 5, 2023 Action Agenda Item No. 8-g SUBJECT: Relief from Collecting Property Tax and Fee Debts DEPARTMENT: Tax Administration ATTACHMENT(S): INFORMATION CONTACT: Property Tax and Fee Debts Summary Nancy T. Freeman, Tax Administrator, Report (919) 245-2735 Memorandum of Explanation Relief from Collecting Property Tax & Fee Debts Report (on file with Clerk's Office) PURPOSE: To approve the release of ad valorem property tax and fee debts owed to Orange County in excess of ten (10) years that are no longer collectible. BACKGROUND: Under North Carolina General Statute (NCGS) 105-373 (g)the Board of County Commissioners "...may, in its discretion, relieve the tax collector of the charge of taxes owed by persons on the insolvent list that are five or more years past due when it appears to the governing body that such taxes are uncollectible." Attached is a summary report, listing by year and beginning with 2007 through 2013, of ad valorem personal property tax and fee bills that have been worked extensively and can no longer be collected using enforced collection techniques. A more-detailed report of the individual accounts has been provided to the Clerk to the Board. NCGS 105-373 (h) addresses the relief from collection of taxes on classified motor vehicles. To remain uniform, attached is a listing by year beginning with 2007 through 2013, of Classified Registered Motor Vehicles tax and fee bills that have been worked extensively and can no longer be collected using enforced collection techniques. NCGS 105-378 (a) specifically bars the use of enforced collections unless the procedure was instituted within 10 years from the date the tax first became due. After discussion with the Chief Financial Officer and conformance with generally accepted accounting principles (GAAP), staff recommends to write-off this debt from the charge and system maintained by the Tax Administration Department. In addition, beginning in 2024 and for future years, an annual request to release one year's worth of debt from the charge will be included in the Annual Tax Collector's Settlement agenda item each September.