AG 1993 05 17 - Laserfiche WebLink

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MEMO To: John Witherspoon From: Blair Bennett Date: April 26, 1993 Subject: Tax Collection Fees Per your request, I have reviewed the fees for collection of property taxes for the City of Kannapolis. The County currently charges a 5% collection fee, which generates approximately $150,000.00 annually. Gene McCombs, Kannapolis City Manager, has asked the County to consider lowering this fee to be more in line with the actual cost to establish and operate a tax collection office. I have checked with the City of Concord Tax Collector, and their budget for that department is approximately $100,000.00. Based on the attached schedule, a fee of 3 1/2 % for property other than vehicles would generate approximately $97,000.00. As you realize, the County will be collecting for all cities' vehicle taxes effective July 1, 1993. For the City of Kannapolis, this would generate in fees to the County approximately $3,300.00. The two fees combined, those for property taxes other than vehicles and taxes on vehicles, would generate approximately $100,300.00 per year to the County. This is a decrease of approximately $50,000.00 in tax collection fees from what is currently being collected. However, this does fairly represent the cost to establish and operate a tax collection department for a city the size of Kannapolis. Obviously, the County would suffer an even greater loss of revenue if the City of Kannapolis were to decide to establish its own tax department. Bearing these facts in mind, and considering that the County could offer other cities within the County our tax collection services, I would offer the following schedule to be effective based on the tax levy dollar volume: Levy less than $3,000,000 Levy $3,000,000 to $5,000,000 Levy greater than $5,000,000 Vehicles tax collections for all cities 5% collection fee 3 1/2% collection fee negotiable 1 1/2% collection fee as prescribed by N. C. law Finance Department PO, Box 707 · Concord, NC 28026-0707 · (704) 788-8104