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City staff says Lenoir City will stop collecting county taxes after auditor recommendation
Summary
City officials told council an auditor recommended the city stop collecting county property taxes because the current handling creates internal-control risk; county trustee and local banks will handle collections instead.
City officials informed Lenoir City Council on Dec. 9 that the city will cease collecting county property taxes after receiving guidance from the county auditor.
A city official told council the county auditor advised the city to stop accepting county tax payments because the city’s longstanding practice created internal‑control risks. The city has provided receipts for the payments it has taken, the official said, and staff have conferred with the county trustee, Chip Miller, about a transition; the trustee is aware and the city expects the county to coordinate next steps. The city finance staff said Southeast Bank and United Community Bank will be additional collection points available to taxpayers.
Council members and staff described the practice as a convenience that benefitted residents historically but said it creates risks when city employees transport county money to county offices. City staff recommended ending the practice for next year’s tax collection cycle and coordinating with the county clerk and county trustee to ensure residents have alternate payment options.
No formal vote was recorded; council members asked clarifying questions about receipts and transitional arrangements and expressed support for ending the practice to improve internal controls.
The exchange appeared during council reports and administrative items; staff said they will notify taxpayers about new payment options once procedures are finalized.
