Agenda 12-01-2025;12-3 - Information Item - Tax Collector’s Report – Measure of Enforced Collections

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2 1 Definitions For Measures of Enforced Collection Wage, Rent, Bank, Housing, Monies, Escheats Garnishment/Attachment/Certifications: NCGS105-368. Procedure for attachment and garnishment. (a)Subject to the provisions of G.S. 105-356 governing the priority of the lien acquired,the tax collector may attach wages and other compensation, rents, bank deposits,the proceeds of property subject to levy, or any other intangible personal property, including property held in the Escheat Fund, in the circumstances and to the extent prescribed in G.S. 105-366(b), (c), and (d). ■ Wage garnishments Local governments can attach wages for unpaid property taxes by issuing an Attachment and Garnishment notice.The notice directs the employer to withhold a portion of the taxpayer's gross wages, not to exceed 10% per pay period,to pay the debt.Taxpayers are notified at the same time as the employer and can make payment in full at anytime to stop the garnishment process. ■ Bank attachments Local governments can attach bank accounts to collect delinquent taxes.This authority allows them to freeze and seize funds in a taxpayer's bank account to satisfy the owed amount.Taxpayers are notified at the same time as the bank. ■ Certifications A process in which a County reaches out to another county to request that a debt be collected on behalf of the certifying county. Used when financial agencies required in person delivery of bank attachments and no branch was located in the certifying county's vicinity. Generally unused in recent years due to changes in financial agencies requirements. ■ Rent attachments A rent attachment is directed toward the payments a tenant owes to a landlord who is delinquent on their taxes.The tax authority notifies the tenant(the "garnishee"), directing them to send their rent payments to the tax collector instead of the landlord until the past due balance is paid in full. Property owners are notified at the same time as the renter and can make payment in full at any time to stop the process. Detailed records of payments are kept for the purpose of updating the property owner of rents received for their tenants. ■ Housing funds attachment is issued to the County Housing department to intercept Housing Choice Voucher(HCV) Program (formerly Section 8 Housing)funds paid to landlords whose taxes are unpaid. ■ Escheats funds attachment is issued to the state to collect funds to pay unpaid property taxes. "Escheated funds" refer to unclaimed funds that, after a period of dormancy, are considered abandoned by the holders of the funds,who are required to transfer them to the state.The State Treasurer holds this property in the Escheat Fund,from which rightful owners or their heirs can claim it at any time. Examples are uncashed checks, unreturned deposits,forgotten savings account. Collections staff members routinely review the https://www.nccash.com/website and compare our list of delinquent taxpayers to the owners of funds that have been escheated to the State. If we can provide a match for name and address,the funds are sent to us for payment on delinquent taxes.The number shown each month represents how many requests were sent to the State for escheated funds. ■ Monies attachment focuses on legal settlements and other proceeds which can be attached to pay delinquent taxes. Example: a property owner who owns multiple properties with unpaid taxes sells one of the properties. Proceeds of that sale can be attached and used to pay the property owner's delinquent taxes. Levy: NCGS 105-367. Procedure for levy. (a)The levy upon the sale of tangible personal property for tax collection purposes(including levy and sale fees)shall be governed by the laws regulating levy and sale under execution except as otherwise provided in this section. (b)The tax collector or any duly appointed Updated October 31,2025