Orange County NC Website
Browse       Search
• Question: Why would we need to use the Debt Setoff Program to collection registered 4 <br /> motor vehicle bills? Are there not provisions in the current laws governing the renewal <br /> of tags with outstanding tax owed? <br /> Answer: Under NCGS 105-330, vehicle tags are blocked when the tax.reaches the eighth <br /> month of delinquency. Tags cannot be renewed until the tax is paid and the block is <br /> removed. However, due to loopholes in the system, there are some vehicle owners who just <br /> go buy a new tag each year and therefore do not have to deal with the issue of their <br /> delinquent taxes. There is also the issue of the transient population that exists in Orange <br /> County with the University and RTP. Individuals that register a car within North Carolina <br /> and then move out of state often take the position that because they no longer reside in North <br /> Carolina, they should not be obliged to pay property taxes on their vehicles. It can be <br /> extremely difficult to collect delinquent taxes from someone living in another state when <br /> they have no physical presence or property in North Carolina. Currently for the year 2001 <br /> we have over 500 vehicles for which taxes have not been paid and the tag has reached <br /> expiration. <br /> • Question: How are other Counties, which have participated in the program finding the <br /> system as a collection tool? <br /> Answer: Pasquotank County originally sent out letters of notification on approximately <br /> $800,000 worth of back delinquent registered motor vehicle billings. Bill Stevens indicated <br /> from those letters that they received $100,000 plus in payment, with promises to pay <br /> additional billings before the year closed. They actually submitted $458,132.87 in debt to the <br /> Department of Revenue. In conversations with Mr. Stevens recently he indicated that they <br /> had collected substantially more from the letters of intent than from actual attachment of <br /> returns. Both Pete Rodda with Forsyth County and Jeff Neibauer with Pitt County also <br /> indicate that their success in collection has been greater with the letter of intent. <br /> • uestion: Currently the way the NC Debt Setoff law is written the Entity (Orange <br /> County) submitting the debt must pay a $15 fee for each return that is attached. Is it <br /> really wroth the effort? <br /> Answer: Effective January 1, 2003 a legislative change will take effect which will make <br /> the $15 processing fee payable by the taxpayer. This means that the County will have no <br /> fees involved in the interception of refunds for state income tax. <br />