AG 1996 05 02 - Laserfiche WebLink

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ICABAI I tlS COUNFrl To: Frank Clifton From: Blair Bennett Date: April 15, 1996 Subject: Tax Collection Fees Attached please find a copy of a memo I sent to County Manager John Witherspoon, in April 1993 regarding tax collection fees for the City of Kannapolis and a schedule that would determine Cabarrus County tax collection fees for anyone requesting our collection services. Also attached is an excerpt from the Board of Commissioners minutes of 5/17/93 adopting that same schedule. When we considered this schedule, our approach was to fairly charge the City of Kannapolis an amount that would represent the cost to establish and operate a tax collection department. Since 1993 the tax levy for Kannapolis has increased to nearly $4.5 million annually. With the current fee schedule we will generate approximately $150,000 this year. Kannapolis City Finance Director Mike Shinn, telephoned me to discuss this situation. We reached a consensus and agreed that Cabarrus County should consider reducing this fee to be more in line with what it would fairly cost to operate and collect taxes should they elect to set up such a department. We agreed that by indexing the 1993 fee by 3% annually, Cabarrus County would receive approximately $110,000. Attached is a letter from Kannapolis City Manager Gene McCombs, requesting that Cabarrus County consider amending our schedule to provide the new framework for establishing what I have discussed above. The new fee schedule proposed would be as follows effective for 7/1/96. 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% collection fee 3 1/2% collection fee 2 1/2% collection fee negotiable 1 l/2% If this is acceptable, please have the Board of Commissioners adopt the above. Finance Department P.O, Box 707 · Concord, NC 28026-0707 · (704) 788-8104