Finance committee approves Davidson County interlocal tax-collection agreement that shifts fee to percentage

Councilman Britt Moore called the High Point Finance Committee to order on April 2 and opened the meeting by introducing item 2026-37, a proposed change to an interlocal tax-collection agreement with Davidson County.

Financial Services Director Bobby Fitz John told the committee Davidson County requested switching from a per-bill collection fee (historically about $7.75 per bill) to a percentage-based fee to match how the city’s other counties charge for collection. "We spend about $700,000 collecting about 89.6 million," Fitz John said, and staff described the proposal as a relatively small portion of total collection costs but a notable change in how fees are calculated. He said Davidson County originally proposed a 1.5% rate but staff and the manager negotiated a phased approach that begins at 1.4% in year one and reaches 1.5% in year three. Fitz John also said Davidson County asked for a shorter interlocal term so the county could reassess the arrangement in three years.

The committee asked procedural questions about the history of the previous per-bill model and how often the agreement would be reviewed. Fitz John said staff and the city attorney had difficulty locating the most recent interlocal language because the prior arrangement had effectively auto-renewed with inflation escalators, but that the current proposal includes a three-year reassessment point. A committee member moved approval; the motion was seconded and passed on a voice vote with no opposition recorded.

Why this matters: the change aligns Davidson County’s fee structure with other counties that use percentage-based collection fees and institutionalizes a review point in three years, while staff said the change represents a modest share of total collection costs. The committee approved the interlocal amendment as presented and recorded it as item 2026-37; staff will return with details at or before the three-year reassessment.