When property tax collection becomes a problem for some municipalities, the state recommends they go to a higher power for help: The county.

On May 21, the Town of Dobbins Heights received a letter from the Department of the State Treasurer concerning municipal collection of real estate and property taxes. According to Sharon Edmundson, author of the letter and director of the department’s fiscal management section, Dobbins Heights collected only 63.64 percent of the ad valorem taxes that it levied for the 2007-2008 fiscal year, which is significantly less than the statewide average of 97 percent.

This year’s collection rate was 61 percent.

“If you have not yet consolidated you tax billing and collection functions with Richmond County, we urge you to consider the possibility carefully,” wrote Edmundson. “Because the county is required by law to collect the municipality’s motor vehicle property tax levy, they may be receptive to assuming responsibility for the other ad valorem taxes as well.”

Other counties do it. Anson collects for all municipalities except Lilesville. Montgomery collects for all but Troy. Moore collects for all but Foxfire and Pinebluff.

“When I first got here, I talked with the town managers about various ways we could do things to cut costs for everyone,” said Montgomery County Manager Lance Metzler. “The county already has to collect taxes from all the residents anyway so our thought process was — why don’t we go ahead and collect taxes for the towns as well?”

According to Metzler, who has now been manager for four years, the new collection process has not put any strain on county employees.

He said the county charges a minimal percentage-per-capita administrative fee for its service and pays off the municipalities on a monthly basis. According to him, many of those municipalities have been able to reduce their staff by one person or dedicate staff time to more pressing endeavors.

“The only additional thing we had to do was put town information on county tax bills,” said Metzler, who added that the same thing goes for considerably more expensive measures - like garnishment and foreclosure - which can require services of an attorney. The municipality in question just piggybacks on whatever lengths the county has to go to.

“If we have to do a collection it wouldn’t cost us any more,” said Metzler. “(The money) comes back to the county and we give the (municipal) revenues straight to the town.”

According to Dobbins Heights Mayor Antonio Blue, the town has approached the county a number of times to ask for help.

County Manager Jim Haynes said last week that the county collects county taxes; they don’t have the resources to do more.

Haynes pointed out that Richmond County’s own collection rate was approximately 92 percent when he became manager in 1996.

“We had a reputation for not trying to collect late taxes,” said Haynes. “Some of it was internal problems; We didn’t have the people or we didn’t make the effort.”

According to him, the county upgraded equipment and people to solve the problem.

“We’ve got a little better system now,” said the manager, adding that the county’s collection rate is now 96.5 percent. “It’s a big difference,” said Haynes. “You just have to be willing to do that. People aren’t going to pay if they know they can get away with it. I’m not sure I would pay.”

Dobbins Heights Tax Collector Katherine Adams has said that many of their property owners live out of town, which makes costly out-of-jurisdiction collection necessary.

“It costs money,” said Haynes. “But the reason you do all that is because those who don’t pay are costing those who do pay.”

Indeed, the minutes of a March 20, 2007 Richmond County Board of Commissioners meeting at Dobbins Heights reflect then-Mayor William Ward’s statement on the subject:

“Mayor Ward commented on the number of absentee property owners in Dobbins Heights and the difficulty that staff has in pursuing collection of these taxes,” read the minutes. “The town went on to state that the town is limited in its ability to borrow money because of the low tax collection rate.”

That is true for the county as well.

“Out of state delinquent taxpayers are harder to collect unless they bank with multi- state bank that has same bank in North Carolina,” said Richmond County Tax Assessor Butch Greene on Tuesday. “It’s possible to do a bank attachment. If we cannot bank attach then foreclosure on property ... yes it can be more complicated and expensive.”

At the 2007 meeting, Councilwoman Gracie Jackson discussed the possibility of the county collecting property taxes for the town.

Chairman Kenneth Robinette noted that “everyone must be treated the same” — a reference to the fact that the county does not collect taxes for any other municipalities. It still doesn’t.

Commissioner Ussery references the Debt Setoff Program made available by the state to collect taxes, because “he felt that once citizens understand that tax collection efforts have become more aggressive, then they will be willing to pay to avoid the consequences.”

Town Clerk Mary Magee said last week that they intend to start going to the Clearinghouse Meetings.

“That’s a League-sponsored program,” said Hankin. “But they would also need to follow through on the other steps of the property tax collection process.

“We certainly are available to talk to municipal officials about best practices, and there‘s more specific expertise available from the Local Government Commission staff and the University of North Carolina at Chapel Hill School of Government.”