Agenda 01-20-2026; 12-3 - Information Item - Tax Collector’s Report – Measure of Enforced Collections

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3 Definitions For Measure of Enforced Collections 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. ■ 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. ■ Monies attachments focus 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. This category includes Housing and Escheats funds attachments. o 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. o 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. Examples: uncashed checks, unreturned deposits,forgotten savings account.The number shown each month represents how many requests were sent to the State for escheated funds. NC Debt Setoff Collections Act NCGS 105A-1. Purposes.The purpose of this Chapter is to establish as policy that all claimant agencies and the Department of Revenue shall cooperate in identifying debtors who owe money to the State or to a local government through their various agencies and who qualify for refunds from the Department of Revenue. It is also the intent of this Chapter that procedures be established for setting off against any refund the sum of any debt owed to the State or to a local government. Furthermore, it is the legislative intent that this Chapter be liberally construed so as to effectuate these purposes as far as legally and practically possible. NCGS 18C-134. Setoff for debt collection against lottery prizes. (a) Purpose.—The Commission must establish a debt set-off program by which lottery prize payments may be used to satisfy a debt owed or collected by a claimant agency that is at least fifty dollars ($50.00).The collection remedy under this section is in addition to and not in substitution for any other remedy available by law. Updated October 31,2025