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Columbus County sets municipal tax-collection fee at 3% after commissioners debate
Summary
After weeks of talks with towns, the Columbus County Board of Commissioners voted 3-2 to charge municipalities 3% of taxes collected for county tax-collection services, overruling staffrecommendation of 2.5%. Commissioners and town leaders had disagreed over rate structure and whether to charge a flat fee or percentage.
The Columbus County Board of Commissioners voted to set the county's fee for collecting municipal property taxes at 3% of taxes collected, the board decided after substantive discussion and a roll-call vote.
The board's action followed a presentation from Eddie Mann, identified in the meeting as planning manager, who said the county has been losing money performing tax-collection duties for towns and recommended a percentage-based fee. "After carefully considering these proposals and reviewing them thoroughly, we are of the opinion, that the best and the most simple solution for the county is to set a rate based on a percentage of taxes collected including delinquent accounts," Mann said during the discussion.
The county previously had a mix of approaches; some municipalities paid flat per-account fees that have not been updated in decades, Mann said. He told the board the county had at times spent more in postage and supplies than it collected for small municipalities and that a percentage model is used by other North Carolina counties.
Commissioner Byrd moved to set the fee at 3% to match neighboring counties, saying the board should "do the same as our joining counties, Bladen County and Robeson County at 3%." The motion was seconded and approved in a roll call. Commissioners voting yes were Featherston, Smith, Bullard and the commissioner listed in the transcript as "Burp"; Commissioners Floyd and Watts recorded no votes. The motion passed by a 4-2 margin.
County staff had recommended a 2.5% starting rate and estimated that if all municipalities contracted with the county the 2.5% option would generate roughly $136,000 in revenue to cover expenses. Mann emphasized the program is voluntary and that each town would decide whether to contract with the county.
Board members pressed staff for comparisons with neighboring counties. Mann said Robeson and Bladen counties charge 3% in at least some cases, and staff pulled comparison data for the board.
The vote amends the county's approach to municipal collections. Several commissioners said the final figure is intended to avoid the county continuing to subsidize municipal collections at taxpayers' expense; others warned the revenue estimate would fall if larger towns declined the county's service.
The board recorded no additional policy changes in the motion; Mann and other staff said the county must change software and billing processes before the next billing cycle begins.
The board's change to a 3% collection fee will be implemented through new contracts with municipalities; staff said municipalities may decline and collect taxes themselves.
Ending: The board's decision resolves the immediate question of what the county will charge towns that ask the county to bill and collect property taxes on their behalf. Further contract negotiations and software adjustments remain to be completed before the next billing cycle.
