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1,000 are delinquent 8 years on property tax

Unpaid bills for Mecklenburg back taxes total $6.6 million. Lack of collection is called 'unacceptable and unfair.'

Fred Clasen-Kelly
frkelly@charlotteobserver.com

More than 1,000 Mecklenburg County property owners have escaped paying taxes for eight years or longer, according to a report released Thursday.

The Mecklenburg tax collector's office compiled the report that shows the county has failed to collect $6.6million in back taxes.

The amount represents a small percentage of the more than $1.3 billion the county collects annually. But the results prompted criticism from elected officials who say the county should take more vigorous steps to collect delinquent taxes.

"To have those incidents of delinquency is unacceptable and unfair to those who pay their taxes on time," Charlotte City councilwoman Susan Burgess said. "The county should leave no stone unturned."

County Commissioner Bill James said the report indicates "we've got a serious problem."

"If you don't want to lay off more people or cut services, we need to collect that $6.6 million," James said.

Mecklenburg County Tax Collector Neal Dixon could not be reached for comment.

A Sept. 8 memo he sent commissioners defends his department, saying its strategy "resulted in an exceptionally high rate of collection for a major metropolitan jurisdiction."

The county collects 99 percent of the tax money owed, the memo says. "We are unaware of any large metropolitan jurisdiction that achieves a 100 percent collection rate," it reads.

Property taxes are among the largest sources of revenue for local government and are commonly viewed as the county's most stable income stream. The county collects taxes for Charlotte and other municipalities in Mecklenburg.

Burgess and Charlotte City Councilman John Lassiter first raised the issue in May when they said the county cost the city desperately needed money by failing to collect delinquent taxes.

More recently, James asked for the report after receiving a complaint from a constituent about an uptown condo. The condo owner has not paid taxes on the property in 12 years, James said.

James asked officials to list only properties with back taxes owed eight years or longer. The report shows 1,299 properties. A review of the information found more than 1,000 names of owners.

James said the county should take greater advantage of the law that allows it to seize property for back taxes and auction it off.

"There has to be a credible threat you will take the house from under them," James said.

Collectors do threaten to auction property, send notices or garnish wages, bank accounts and income taxes in some cases, Dixon has said previously.

In his memo, Dixon said bankruptcies, ownership disputes and other legal issues can make it difficult to collect taxes.

County Commissioners Chairman Jennifer Roberts said she had not seen the report, but said she has been told the county does a good job collecting taxes.

"I have talked to commissioners in counties where the collection rate is 90 percent," Roberts said.

Fred Clasen-Kelly: 704 358-5027
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