Laserfiche WebLink
March 31, 1993 <br /> <br />To: Board of Commissioners <br />From: Blair Bennett, Finance Director <br />Subject: Elimination of Tax Discount <br /> <br /> In previous years, Cabarrus County has offered a discount of <br />2% for property taxes paid in July and 1 1/2% for property taxes <br />paid in August. The original purpose of giving discounts was to <br />provide for cash flow needs of the County during the periods of <br />July and August when revenue collections are low. Also, several <br />major companies normally paid their taxes during this period. <br />However, our records now indicate that most companies are paying in <br />December. Beginning in July of 1993, tax collections will not be as <br />seasonal due to the implementation of the new property tax vehicle <br />law. As vehicle taxes will be billed monthly, revenue collections <br />will flow more evenly to the County. <br /> <br /> Additionally, the County, in previous years, earned <br />approximately 6% to 8% on investments of the moneys collected <br />during the periods of July and August. However, with the County now <br />earning less than 3% on investments, the cost to give the discount <br />is not offset by additional investment earnings. <br /> <br /> Discounts given for the period ending June 30, 1992 were <br />$114,617. After discussions with Terry Rowland, Linda Morgan and <br />John Witherspoon, it is our recommendation that the discount for <br />property taxes be eliminated. We are requesting that you take this <br />action at your meeting of April 5, 1993 so that we may inform the <br />Department of Revenue and the escrow agents of your decision. <br /> <br /> Finance Department <br /> <br />P.O. Box 707 · Concord, NC 28026-0707 · (704) 788-8104 <br /> <br /> <br />