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In response to sharp criticism from politicians, Mecklenburg County is looking into complaints that officials have failed to collect taxes from some property owners for years.
The county tax collector's office is compiling a report to show whether problems are widespread or limited to a relatively few cases. Officials will report the findings to the county Board of Commissioners.
The action comes after commissioner Bill James and other elected officials chastised the county for allowing some people to avoid paying taxes for a decade or longer.
Charlotte City Council members John Lassiter and Susan Burgess earlier this year complained that failure to collect taxes cost the city badly needed revenue. The county collects taxes for Charlotte and other municipalities in Mecklenburg.
Stable revenue stream
Property taxes are one of the largest sources of money for local government and are widely seen as the county's most stable revenue stream.
But officials reported in April that the county is owed $26.7 million in delinquent taxes for 2008. An advertisement the county ran in the Observer listed more than 28,800 overdue tax bills for land, buildings and business equipment.
James said he requested the report about tax delinquent properties after receiving a complaint from a citizen about an uptown condo. Records show the condo owner has not paid taxes on the property in 12 years, James said.
“People are gaming the system,” he said. “If we allow that to happen, it will undermine public confidence.”
Mecklenburg Tax Collector Neal Dixon acknowledged there are properties where bills have remained unpaid for years, but said his office has taken aggressive steps to collect the money. Collectors send notices, knock on doors or threaten to garnish wages, bank accounts and income tax refunds in those cases, Dixon said.
In many cases, he said, delinquent tax bills stem from bankruptcies, disputes over ownership and legal wrangling that make it difficult for the county to recover past-due taxes.
“It's more complex than it looks on the surface,” Dixon said.
County collects 99%
A report city officials produced earlier this year showed Mecklenburg tax collection rates were comparable to or better than those of counties of similar size.
Over the last 10 years, the county has collected 99 percent of the tax dollars owed, Dixon said.
But anecdotes about unpaid taxes have prompted some officials to call for action.
At a City Council meeting in May, Lassiter said officials had received information about several properties where taxes have not been paid in 10 to 12 years. “This is a good time to tighten down the screws on those folks who owe the government money,” he said.
Burgess said she received a complaint letter from a constituent about a rental property where the landlord avoided paying taxes for years. The county tax office confirmed information contained in the letter, she said.
“That's outrageous,” she said. “It's not fair to our citizens – the 97 percent who paid taxes – for 3 percent just to walk away from us. I think we ought to get aggressive about it.”
Fred Clasen-Kelly: 704 358-5027
