MEMORANDUM
TO: Mayor and Town Council
FROM: W. Calvin Horton, Town Manager
SUBJECT: Renewal of Tax Collection Agreement with Durham County
DATE: September 9, 2002
The attached resolution would authorize the Manager to renew an Interlocal Cooperation Agreement between the Town and Durham County for the collection of property taxes for the portion of Chapel Hill located in Durham County.
BACKGROUND AND DISCUSSION
In past years as provided in State law, the Town has maintained an agreement with Durham County for the collection of property taxes on real and personal property and motor vehicles for property located within the portion of Chapel Hill that is in Durham County.
No changes from prior years are proposed in the attached renewal agreement. Compensation to the County would remain at 1 ˝% of the total amount of taxes collected as specified and allowed by State statute (about $17,900 last year). The agreement would provide for the collection of taxes and vehicle fees for a period of four years beginning July 1, 2002. A copy of the proposed agreement is attached.
The Town’s property taxes in Orange County are collected under a continuing contract with the County that is based on the Town’s prorated share of the total direct and indirect costs of collections among the various jurisdictions in the County that participate in the contract.
RECOMMENDATION
We recommend that the Council adopt the attached resolution authorizing the Manager to renew the Interlocal Cooperation Agreement for a period of four years.
ATTACHMENT
1. Proposed Interlocal Agreement with Durham County (p. 3).
A RESOLUTION AUTHORIZING THE MANAGER TO ENTER INTO A RENEWAL AGREEMENT WITH DURHAM COUNTY FOR THE COLLECTION OF PROPERTY TAXES (2002-09-09/R-4)
WHEREAS, a portion of the Town of Chapel Hill is located within Durham County; and
WHEREAS, the Town wishes to enter into an interlocal agreement with Durham County for the collection of property taxes on real and personal property and motor vehicles, including annual vehicle fees; and
WHEREAS, the proposed compensation to Durham County is 1 ˝% of the amount of taxes collected as specified and allowed by State law;
NOW, THEREFORE, BE IT RESOLVED by the Council of the Town of Chapel Hill that the Council hereby authorizes the Manager to renew a proposed Interlocal Cooperation Agreement for the collection of said taxes for a period of four years beginning July 1, 2002.
This the 9th day of September, 2002.