Delinquent Accounts & Foreclosure Auctions

foreclosure

What Happens When Property Taxes Become Delinquent?

When a property tax bill becomes delinquent, the Tax Collector is authorized, under NCGS 105-368 to take legal action to collect the unpaid amount. This may include garnishing wages or attaching bank accounts, rent payments or other funds owed to the taxpayer. 
Review NCGS 105-368 Now

Paying another person’s delinquent property taxes does not give you ownership of the property. In North Carolina, the collection of property taxes, the placement of liens, and foreclosure proceedings are governed by specific legal procedures.  While anyone may pay the taxes on a property, doing so does not transfer title or ownership rights.

Legal Remedies Used to Collect Delinquent Taxes

All enforcement actions will include additional fees or costs, which are added to the original tax bill in accordance with state statutes. Note: enforced collections do not apply to accounts under appeal or active bankruptcy protection. The Pitt County Tax Administration may use a variety of tools authorized by North Carolina law to collect delinquent taxes.

These may include:

  • Wage garnishment
  • Bank account attachment
  • Sheriff’s warrant and seizure of personal property
  • Rent levy
  • Participation in the NC Debt Setoff Program
  • Tax foreclosure on real estate
  • Escheated funds attachment
  1. Attachment & Garnishment for Delinquent Taxes
  2. Sheriff Warrant and Property Seizure
  3. Advertisement of Unpaid Real Estate Taxes
  4. Tax Foreclosure

How Garnishments and Attachments Work

Funds may be collected from third parties holding money for the taxpayer, such as employers, banks or renters. These third parties are legally required to send the funds to the Pitt County Tax Collector, along with any applicable service or collection fees. Both the taxpayer and the third party receive notice of the action. Payment plans are NOT an option.

Service and Collection Fees

In accordance with NCGS 105-368 and NCGS 7A-311, a $30 fee per notice is charged when garnishment or attachment notices are served. Because both the taxpayer and the garnishee (such as the bank or employer) receive a notice, the total fee is $60.

Wage Garnishment

If your wages are garnished, your employer must withhold and send 10% of your gross pay each pay period to the County. This continues until the full debt, including accrued interest and related fees, are paid or until a Release of Garnishment is issued by Pitt County Tax Administration.

Bank Account Attachment

When a bank account is attached, the bank may immediately withdraw the funds or place a 10-day hold on the required funds. During this period, you may pay the balance. However, please be aware that the funds may still be sent to our office. If no payment is received by the end of the hold period, the available funds will be forwarded to the County. Banks may charge an additional processing fee separate from County fees. Please contact your banks legal department to inquire about their policies and procedures.

Rent Attachments

If you earn rental income, tenants will be served and required by law to send their rent payments to the Pitt County Tax Collector until your tax debt is resolved. You may also choose to settle the debt yourself by paying in full. Once paid, a Release of Attachment will be issued to your tenants.

NC Debt Setoff Program

NC Debt Setoff is a statewide effort that helps collect delinquent taxes by applying a taxpayer’s state income tax refund or lottery winnings to their outstanding debt.

If you owe delinquent property taxes and qualify for a state tax refund or lottery prize, that amount may be used to pay what you owe to the County. You will receive a formal notice informing you of the debt.

Once a debt is submitted to the program, it remains active until the full balance is paid or the debt is otherwise resolved. Additional fees will apply as part of the setoff process.

Other Types of Attachments

Additional sources that may be subject to attachment include:

  • Section 8 housing assistance payments
  • Escheated funds held by the North Carolina Department of State Treasurer
  • Proceeds from legal settlements, judgments or real estate closings.

If you receive a notice of garnishment or attachment and have questions or concerns, 
Email the Garnishments Department or Call 252-902-3425.