Frequently Asked Questions
Underpayments
and Overpayments
Q: May a tax collector to treat small underpayments
and overpayments as accurate payments?
A: Yes, in certain circumstances. GS 105-357(c)
provides that the governing body may adopt a resolution
to treat underpayments and overpayments of taxes
of $1 or less as accurate payments. If such a resolution
exists, the collector is not required to collect
the balance due as a result of an underpayment of
this amount or refund an overpayment of this amount
unless the taxpayer requests a refund during the
fiscal year in which the payment was made. The resolution
can apply only to mailed payments. The resolution
must be adopted on or before June 15 preceding the
July 1 fiscal year to which it is to apply. Once
adopted, it applies to payments of taxes for the
coming fiscal year and all payments received on
or after the following July 1 for previous fiscal
years' taxes. The resolution continues in effect
until repealed or amended.
Q: The tax collector has received overpayments
from taxpayers, whom she cannot now locate. It has
been over a year since the funds were paid. What should
she do with these sums?
A: These funds are abandoned property pursuant
to GS 116B-53(c)(12), which provides that property
is presumed abandoned if held by a court, government,
governmental subdivision, agency or instrumentality
and unclaimed one year after the property becomes
distributable. After making a good faith effort
to locate the apparent owner pursuant to GS 116B-59(a).
the taxing unit should file a report with the State
Treasurer's office, as required by GS 116B-60, and
deliver the property to the Treasurer, as required
by GS 116B-61.
GS 116B-77 provides for interest and penalties
upon a holder of funds' failure to comply with the
provisions of that chapter, though it permits the
Treasurer for "good cause" to waive interest
and penalties. In addition, GS 116B-79 provides
for the imposition of penalties that existed under
the previous article for administration of abandoned
property, which was amended in 1999.
GS 116B-59 does not define what constitutes a "good
faith" effort to locate an apparent owner,
but does prescribe specific procedures that must
be followed to provide notice to the apparent owner
if the value of the property is $50 or more. The
taxing unit should, at the very least, attempt to
contact the apparent owners by first class mail,
and search any of its records for information that
would assist in locating these owners.
|
