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