Taxes In Troubling Times

<p>Tax administration is obviously not at the top of any local government’s list of pandemic concerns.   But social distancing and other remedial measures made necessary by this public health crisis are creating some unusual challenges for tax offices, and some of those challenges relate to community and economic development.  This post addresses a few of the pandemic-related questions I’ve received from tax officials recently.</p> <p>Are local governments required to keep their tax offices open to accept property tax payments in person?</p> <p>No.</p> <p>The only statute that deals with the location of tax payment is GS 105-353. The main requirement of that provision is its first sentence, “Taxes shall be payable at the office of the tax collector or at a financial institution with which the taxing unit has contracted for receipt of payment of taxes.” The provision also gives the governing board the option of requiring the tax collector “to be present in person or by deputy at other designated places within the taxing unit . . . .”</p> <p>I do not interpret GS 105-353 as requiring taxpayers to be able to pay property taxes in person via interaction with tax office staff.  I think a local government could satisfy the requirements of this statute by continuing to accept payments by mail and/or offering a physical drop box at its tax office.</p> <p>May local governments refuse to accept cash as payment for property taxes? </p> <p>No.</p> <p>Although local governments are not required to offer in-person payment options, I do believe they need to continue to accept cash as payment for property taxes.  GS 105-357(a) [...]</p>