AG 1996 05 02 - Laserfiche WebLink

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of anna o is POST OFFICE BOX 1199 [3 KANNAPOLIS, NORTH CAROLINA 28082-1199 April 8, 1996 Mr. Frank W. Clifton, Jr. County Manager P.O. Box 707 Concord, NC 28026-0707 Re: Tax Collection Fees Dear Frank: The City of Kannapolis and Cabarrus County has mutually agreed to an arrangement whereby Cabarrus County collects all property taxes for Kannapolis on property that lies in Cabarrus County. Attached for your information is a memorandum from Blair Bennett, dated April 26, 1993 that outlines the terms and conditions for this arrangement. Based on this memorandum, the County established a 3 1/2 % collection fee for property tax collections (not including vehicle property tax) which produced a collection fee of $100,300 for 1993. Assuming an inflation rate of 3 % since that time, the County would require approximately $110,000 annually for collecting City taxes. It is anticipated that the tax levy for Kannapolis in 1996 will be $4,200,000 (not including motor vehicles) and $437,000 for motor vehicles. Based on these assumptions, a revised collection fee of 2 1/2 % would yield the County approximately $111,555 including $6,555 for motor vehicles. It is suggested that a more equitable collection rate schedule be established as follows to be effective July 1, 1996: AMOUNT OF LEVY OLD NEW RATE RATE Levy less than $3,000,000 Levy $3,000,000 to $4,000,000 Levy $4,000,000 to $5,000,000 Levy greater than $5,000,000 Vehicle tax collection 5% col. fee 3 % % col. fee 3 ¼ % col. fee negotiable 11/2% 5% col. fee 3 % % col. fee 2 % % col. fee negotiable l~h% 2.05 WEST AVENUE E3 KANNAPOLIS, NORTH CAROLINA 28081 ADMINISTRATION (704) 938-5133 E3 PUBLIC WORKS (704) 938-5,131 ~1 PERSONNEL (704) 938-5136 FAX (704) 938-59193