§ 105-373. Settlements. - North Carolina Statutes

§ 105‑373.  Settlements.

(a)        Annual Settlementof Tax Collector. –

(1)        Preliminary Report.– After July 1 and before he is charged with taxes for the current fiscal year,the tax collector shall make a sworn report to the governing body of the taxingunit showing:

a.         A list of thepersons owning real property whose taxes for the preceding fiscal year remainunpaid and the principal amount owed by each person; and

b.         A list of thepersons not owning real property whose personal property taxes for the precedingfiscal year remain unpaid and the principal amount owed by each person. (Tothis list the tax collector shall append his statement under oath that he hasmade diligent efforts to collect the taxes due from the persons listed out oftheir personal property and by other means available to him for collection, andhe shall report such other information concerning these taxpayers as may be ofinterest to or required by the governing body, including a report of hisefforts to make collection outside the taxing unit under the provisions of G.S.105‑364.) The governing body of the taxing unit may publish this list inany newspaper in the taxing unit. The cost of publishing this list shall bepaid by the taxing unit.

(2)        Insolvents. – Uponreceiving the report required by subdivision (a)(1), above the governing bodyof the taxing unit shall enter upon its minutes the names of persons owingtaxes (but who listed no real property) whom it finds to be insolvent, and itshall by resolution designate the list entered in its minutes as the insolventlist to be credited to the tax collector in his settlement.

(3)        Settlement forCurrent Taxes. – After July 1 and before he is charged with taxes for thecurrent fiscal year, the tax collector shall make full settlement with thegoverning body of the taxing unit for all taxes in his hands for collection forthe preceding fiscal year.

a.         In the settlementthe tax collector shall be charged with:

1.         The total amount ofall taxes in his hands for collection for the year, including amountsoriginally charged to him and all amounts subsequently charged on account ofdiscoveries;

2.         All penalties,interest, and costs collected by him in connection with taxes for the currentyear; and

3.         All other sumscollected by him.

b.         The tax collectorshall be credited with:

1.         All sumsrepresenting taxes for the year deposited by him to the credit of the taxingunit or receipted for by a proper official of the unit;

2.         Releases dulyallowed by the governing body;

3.         The principal amountof taxes constituting liens on real property;

4.         The principal amountof taxes included in the insolvent list determined in accordance withsubdivision (a)(2), above;

5.         Discounts allowed bylaw;

6.         Commissions (if any)lawfully payable to the tax collector as compensation; and

7.         The principal amountof taxes for any assessment appealed to the Property Tax Commission when theappeal has not been finally adjudicated.

Thetax collector shall be liable on his bond for both honesty and faithfulperformance of duty; for any deficiencies; and, in addition, for all criminalpenalties provided by law.

Thesettlement, together with the action of the governing body with respectthereto, shall be entered in full upon the minutes of the governing body.

(4)        Disposition of TaxReceipts after Settlement. – Uncollected taxes allowed as credits in thesettlement prescribed in subdivision (a)(3), above, whether represented by taxliens held by the taxing unit or included in the list of insolvents, shall, forpurposes of collection, be recharged to the tax collector or charged to someother person designated by the governing body of the taxing unit understatutory authority. The person charged with uncollected taxes shall:

a.         Give bondsatisfactory to the governing body;

b.         Receive the taxreceipts and tax records representing the uncollected taxes;

c.         Have and exerciseall powers and duties conferred or imposed by law upon tax collectors; and

d.         Receive compensationas determined by the governing body.

(b)        Settlements forDelinquent Taxes. – Annually, at the time prescribed for the settlementprovided in subdivision (a)(3), above, all persons having in their hands forcollection any taxes for years prior to the year involved in the settlementshall settle with the governing body of the taxing unit for collections made oneach such year's taxes. The settlement for the taxes for prior years shall bemade in whatever form is satisfactory to the chief accounting officer and thegoverning body of the taxing unit, and it shall be entered in full upon theminutes of the governing body.

(c)        Settlement at Endof Term. – Whenever any tax collector fails to succeed himself at the end ofhis term of office, he shall, on the last business day of his term, make fulland complete settlement for all taxes (current or delinquent) in his hands anddeliver the tax records, tax receipts, tax sale certificates, and accounts tohis successor in office. The settlement shall be made in whatever form issatisfactory to the chief accounting officer and the governing body of thetaxing unit, and it shall be entered in full upon the minutes of the governingbody.

(d)        Settlement uponVacancy during Term. – When a tax collector voluntarily resigns, he shall, uponhis last day in office, make full settlement (in the manner provided insubsection (c), above) for all taxes in his hands for collection. In default ofsuch a settlement, or in case of a vacancy occurring during a term for anyreason, it shall be the duty of the chief accounting officer or, in thediscretion of the governing body, of some other qualified person appointed byit immediately to prepare and submit to the governing body a report in thenature of a settlement made on behalf of the former tax collector. The report,together with the governing body's action with respect thereto, shall beentered in full upon the minutes of the governing body. Whenever a settlementmust be made in behalf of a former tax collector, as provided in thissubsection (d), the governing body may deliver the tax receipts, tax records,and tax sale certificates to a successor collector immediately upon theoccurrence of the vacancy, or it may make whatever temporary arrangements forthe collection of taxes as may be expedient, but in no event shall any personbe permitted to collect taxes until he has given bond satisfactory to thegoverning body.

(e)        Effect of Approvalof Settlement. – Approval of any settlement by the governing body does notrelieve the tax collector or his bondsmen of liability for any shortageactually existing at the time of the settlement and thereafter discovered; nordoes it relieve the collector of any criminal liability.

(f)         Penalties. – Inaddition to any other civil or criminal penalties provided by law, any memberof a governing body of a taxing unit, tax collector, or chief accountingofficer who fails to perform any duty imposed upon him by this section shall beguilty of a Class 1 misdemeanor.

(g)        Relief fromCollecting Insolvents. – The governing body of any taxing unit may, in itsdiscretion, relieve the tax collector of the charge of taxes owed by persons onthe insolvent list that are five or more years past due when it appears to thegoverning body that such taxes are uncollectible.

(h)        Relief fromCollecting Taxes on Classified Motor Vehicles. The board of countycommissioners may, in its discretion, relieve the tax collector of the chargeof taxes on classified motor vehicles listed pursuant to G.S. 105‑330.3(a)(1)that are one year or more past due when it appears to the board that the taxesare uncollectible. This relief, when granted, shall include municipal andspecial district taxes charged to the collector. (1939, c. 310, s. 1719; 1945,c. 635; 1947, c. 484, ss. 3, 4; 1951, c. 300, s. 1; c. 1036, s. 1; 1953, c.176, s. 2; 1955, c. 908; 1967, c. 705, s. 1; 1971, c. 806, s. 1; 1983, c. 670,s. 22; c. 808, ss. 5‑7; 1987, c. 16; 1991, c. 624, s. 3; 1991 (Reg.Sess., 1992), c. 961, s. 10; 1993, c. 539, s. 726; 1994, Ex. Sess., c. 24, s.14(c); 1997‑456, s. 27; 2006‑30, s. 7.)