Fundamentals of Property Tax Collections Exam 2024

Question 1

Which of the following is true for tax collectors appointed under GS 105-349?

Answer 1

The governing board may remove a tax collector from office during his/her term for “good cause.”

Question 2

Big Company, Inc. pays its property taxes with a check for $15,000. Two days after the tax collector deposits the check, it is returned for insufficient funds. What is the maximum penalty that the tax collector may apply to Big Company’s tax account?

Answer 2

$1,000

Question 3

In general, when do deferred taxes become delinquent and collectible?

Answer 3

When the property is transferred or used for a different purpose.

Question 4

Which of the following records are NOT subject to disclosure under North Carolina public records law?

Answer 4

Records that contain information about a taxpayer’s income or receipts.

Question 5

The taxes commonly referred to by the tax collector as “2024 taxes” are levied for what period of time?

Answer 5

July 1, 2024 through June 30, 2025

Question 6

Which of the following is true regarding interest charges for delinquent property taxes?

Answer 6

None of the above (below).

Interest may be compromised by the governing board at its discretion.

Interest first accrues as of September 1.

Interest first accrues as of January 1.

Interest is pro-rated for a partial month based on the number of days left in the month payment is made.

Question 7

Discounts for early payment of property taxes must end on…

Answer 7

September 1 of the year in which the taxed property was listed.

Question 8

Taxpayer Terry owes $1,000 in delinquent 2022 property taxes. The tax collector garnishes Terry’s wages for these delinquent taxes. Terry earns $500 per week, with $50 withheld for federal and state taxes. What amount should Terry’s employer garnish from Terry’s next paycheck for local property taxes?

Answer 8

$50

Question 9

True or False: Chapter 13 bankruptcies are liquidations that are usually completed within 3 months.

Answer 9

False.

Question 10

Which of the following statements are generally true about tax collections in bankruptcy?

Answer 10

All of the above (below).

Tax liens on real property survive bankruptcy.

Post-petition taxes are administrative claims that will remain enforceable after discharge.

The automatic stay continues through the duration of a Chapter 13 payment plan.

Question 11

Public records in the tax collector’s office must be made available for inspection by:

Answer 11

Any person.

Question 12

As of January 1, 2024, Tina Tuttle owns two parcels of real estate, Parcel A and Parcel B, and a boat, all of which are listed in Gaston County. For 2024, the taxes on Parcel A are $500, the taxes on Parcel B are $200, and the taxes on the boat are $100. The amount of the 2024 tax lien on Parcel A is:

Answer 12

$600

Question 13

The total cost added to the taxpayer’s outstanding balance for notices of attachment/garnishment served on the taxpayer and the taxpayer’s employer for a wage garnishment is

Answer 13

$60

Question 14

Which of the following statements about NC public record law are true?

Answer 14

Both A and B.

A document that contains a taxpayer’s Social Security number is a public record that must be disclosed after the Social Security number is redacted.

A document that contains income information about a taxpayer does not need to be disclosed.

Question 15

In April 2024, the assessor discovers that Taxpayer Tom failed to list his boat for 2023 property taxes. The boat was listed for 2024 taxes. What penalties apply?

Answer 15

20% of the 2023 taxes on the boat.

Question 16

In deferred tax programs such as present-use value and the circuit breaker, interest begin to accrue on deferred taxes when?

Answer 16

Jan. 6 of the fiscal year in which the deferred taxes originally arose.

Question 17

Tommy Jones lives in Cumberland County. The registration on Tommy Jones’ Ford Explorer expired September 30, 2023. He renewed the registration and paid the 2023-24 taxes on the car on October 10, 2023. On May 5, 2024, Tommy traded in the Explorer for a Toyota Hybrid. He surrendered the tags from the Explorer and registered the Toyota Hybrid on same day. On June 11, 2024, Tommy presented to the Cumberland County tax collector the registration surrender receipt (FS20) and bill of sale from the Explorer. What is the result for the 2023-24 tax bill on the Explorer?

Answer 17

Tommy is entitled to a refund of 4 months of taxes on the most recent tax bill for the Explorer.

Question 18

In 2016, Mr. M. Jordan builds a detached garage on his property. The garage is never listed for taxation. In March 2024, the assessor learns of the garage’s existence. What is the earliest tax year that may be included on the discovery bill for the garage?

Answer 18

2019

Question 19

Carolina County forecloses on Parcel A, which is subject to a $3,000 lien for 2020 county property taxes and a $1,500 lien for property taxes levied by Blue Devil City in 2017. Both tax liens are included in the foreclosure action. The property sells for only $4,000. Which tax lien has the higher priority (in other words, which tax lien will be paid first)?

Answer 19

Both tax liens are of equal priority and will be paid at the same time on a pro-rata basis.

Question 20

Billy BlueDevil owes $2000 in unpaid 2023-24 taxes. He wants to pay the taxes in full in May 2024. The taxes have not been advertised. How much must he pay?

Answer 20

$2100

Question 21

True or False. Tax collectors may use enforced collections against a debtor in a pending bankruptcy case for post-petition taxes without violating the automatic stay.

Answer 21

False

Question 22

On September 10, 2024, Blue Devil City voluntarily annexes the Briarwood subdivision. Which of the following statements correctly describes the taxation of the annexed property by the city?

Answer 22

The annexed property will be assessed for a portion of 2024-25 city taxes, which will become delinquent on January 6, 2026.

Question 23

On April 1, 2024, Tina Tarheel telephones the Carolina County tax office and asks if there are any delinquent taxes owed on Parcel A. A tax office employee tells Tina that there are no delinquent taxes on Parcel A. In fact, the 2018 taxes on Parcel A are delinquent. In reliance on the oral statement by the tax office employee, Tina purchases Parcel A on April 3, 2024. Can Carolina County subsequently foreclose on Parcel A for the delinquent 2018 taxes?

Answer 23

Yes.

Question 24

Billy Blue Devil’s real and personal property has been listed in the town of Pittsboro in Chatham County each year since 1995. It is now October 2, 2024 and in a discussion with the town clerk, Billy discovers that his property is not now and never has been located within the Pittsboro town limits. Billy immediately files a written demand for a refund with the town council for all taxes paid since 1995. Which of the following is true?

Answer 24

The town council must refund town taxes paid by Billy for 2020-2024.

Question 25

Mr. M. Jordan is a taxpayer who owes 2018 Orange County, NC property taxes on his private jet, which is listed for taxation in Orange County. Jordan also owns an ocean-front mansion and a boat, both of which are listed for taxation in New Hanover County, NC. Which of the remedies listed below may Orange County use to collect the delinquent taxes on Mr. Jordan's private jet?

Answer 25

A and B but not C. Levy upon and sell the private jet. Levy upon and sell the boat (with help from New Hanover County).

Question 26

A taxpayer's right to "redeem" her property and stop a foreclosure ends when?

Answer 26

When the upset bid period ends and the court confirms the sale.

Question 27

On December 20, 2024, the assessor issues a discovery bill on Roy's boat for tax years 2022, 2023, and 2024. When does interest begin to accrue on that discovery bill?

Answer 27

January 6, 2025 (moved to Jan. 7 due to weekend/holiday rule)

Question 28

A house and lot owned by Wanda Wolfpack are listed for taxation (as one parcel) with the Carolina County Tax Office for 2024 taxes. On March 15, 2024, Wanda sells the house and lot to Mike Mountaineer, who immediately records the deed. It is now May 2, 2025, and the 2024 taxes on the property are unpaid. Mike still owns the property. Which of these remedies is available to the tax collector to collect the unpaid taxes?

Answer 28

A and B only. Foreclosure of the lien on the property. Garnishment of Mike's wages.

Question 29

On January 1, 2024, St. Paul's Episcopal Church owned a house and lot that were used for church educational programs. On May 3, 2024, the church sold the house and lot to Mr. and Mrs. Green for use as a private residence. Which of the following statements correctly describes the status of the 2024 taxes on the house and lot?

Answer 29

The property will be assessed for a full year of 2024 taxes.

Question 30

Which of the following statements about advertising delinquent tax liens are true?

Answer 30

None of the above is true (Below). The county can choose to advertise on its website instead of in a newspaper The advertisement must run in the newspaper with the greatest paid circulation in the county. No foreclosures may begin until 30 days after the advertisement runs.

Question 31

May delinquent water and sewer fees be collected using attachment and garnishment?

Answer 31

No, assuming there was no local bill concerning this issue.

Question 32

Mike owns parcel A and allows Roy to place a mobile home on Parcel A. Roy lives in and continues to own the mobile home, which has its hitch and axles removed and sits on a permanent foundation. If the taxes on the mobile become delinquent, may the county foreclose on Parcel A to collect the taxes on the mobile home?

Answer 32

No.

Question 33

Bonnie Beach owns a cottage in Wrightsville Beach, NC, which she rents out during the summer through Captain Charley's Rentals. Bonnie lives in Maryland and has not paid the property taxes on the cottage for 2021 and 2022. Which statement accurately describes the enforcement measures available to the Wrightsville Beach tax collector to collect the delinquent property taxes that Bonnie owes?

Answer 33

The collector can attach the rents paid on the cottage by serving a notice on Bonnie and a notice on Captain Charley's Rentals.

Question 34

Mike lives in Carolina County and owns a Ford Escape, the registration for which expires in March 2024. He does not renew the registration until May 2024. The DMV keeps Mike on the same April to March registration and tax year. Should Carolina County issue a gap bill for Mike's car?

Answer 34

No, because the Ford's registration and tax year did not change and the Ford was taxed as a registered vehicle for those months.

Question 35

Roy owns a Volvo that is registered in Carolina County. The registration and tax year ends on October 31, 2023. Roy does not renew the registration until March 2024. Because Roy claims the Volvo was not drivable from October through March, the DMV starts Roy on a new registration and tax year that runs from April 2024 to March 2024. Will Carolina County need to bill Roy for any taxes on the Volvo?

Answer 35

Yes, Carolina County should issue a gap bill to Roy for the 5 months between the expiration of the previous registration year and the start of the new registration year.

Question 36

Bob owes delinquent Carolina County "gap" taxes on his Honda Civic for the period December 2021 through August 2022 during which the car was not registered. Which of the following remedies are available to collect the taxes owed on the Honda for the period it was unregistered?

Answer 36

B and C only. Garnishment of Bob's wages. Levy and sale of Bob's Honda Civic.

Question 37

On February 1, 2024, Ted's Terrific Lawn Care, Inc. sells 5 riding mowers and one tractor to Bob's Best Mowing, Inc. The 2024 property taxes on the mowers and tractor later become delinquent. What remedies does the county tax collector have to collect those taxes?

Answer 37

None of the above. (below) Attach Bob's Best Mowing, Inc.'s bank account. Levy on the mowers and tractor. Foreclose on any real property owned by Bob's Best Mowing, Inc.

Question 38

Taxpayer Tom works two part-time jobs with two different employers and owes delinquent property taxes to Carolina County. May the Carolina County tax collector serve both of Tom's employers with wage garnishments for Tom's delinquent taxes?

Answer 38

Yes

Question 39

Which of the following statements are true?

Answer 39

Taxes assessed on personal property (other than registered motor vehicles) are a lien on real property owned by the same taxpayer in the same taxing unit.

Question 40

Aaron Walker owes delinquent property taxes on his ski boat which is listed in his name only. Which of the following actions may the tax collector take to enforce payment of the taxes?

Answer 40

Attach rent due to be paid to Aaron by tenants who rent office space in a building owned by Aaron.

Question 41

Under what circumstances may a tax collector levy on or attach property of the taxpayer to secure payment of taxes that are not yet delinquent?

Answer 41

A and C and but not B. If the tax collector has reasonable grounds for believing the taxpayer is about to remove the property from the taxing unit. If the tax collector has reasonable grounds to believe the taxpayer is in imminent danger of becoming insolvent.

Question 42

True or False. Upon written demand from the tax collector, employers must provide to the tax collector a list of the names, addresses, and Social Security numbers of their employees who may be liable for taxes.

Answer 42

False

Question 43

True or False: Interest accrues against unpaid tax assessments that are under appeal to the Property Tax Commission and/or North Carolina courts.

Answer 43

True

Question 44

Carolina County offers a 2% discount for property taxes paid prior to September 1. If September 1 falls on a Sunday, and Monday, September 2 is the Labor Day holiday, when is the last day on which a taxpayer may pay her taxes and receive a discount in Carolina County?

Answer 44

Tuesday, September 3

Question 45

Carolina County forecloses on Roy's real property. The county has a lien on the property for $1,000. The county also collects taxes for Blue Devil City, which has a $500 lien on the property. At the foreclosure sale, Mike bids $5,000 for the property. The attorney's fees and sales costs are $100 at this point. Two days after the sale, Roy appears at the tax office and asks to redeem his property and stop the foreclosure sale. What should the tax office tell Roy?

Answer 45

Roy can redeem his property by paying $1,600, which is the total of the taxes owed to Carolina County and Blue Devil City plus the attorneys costs and fees.

Question 46

True or False: Occupancy taxes automatically create a lien on the taxpayer's real property that can be enforced through foreclosure.

Answer 46

False

Question 47

Taxpayer Thomas owns real property in Blue Devil City, which is appropriately listed and taxed for 2015. When is the last date that the Blue Devil City tax collector may initiate enforced collection proceedings on Thomas's delinquent 2015 taxes?

Answer 47

September 1, 2025

Question 48

Which of the following statements concerning the Set-off Debt Collection Act is true?

Answer 48

A tax collector may use this remedy to collect local taxes, fees, or other charges owed to the local government.

Question 49

Carolina County spends $1,000 cleaning up a property owned by Tina that had been determined to be a public nuisance. What remedies does the county have to collect these costs?

Answer 49

All of the above. (below) Foreclosure on the property. Garnishment of Tina's wages. Levy and sale of Tina's car.

Question 50

Solid waste fees can create a lien on the real property receiving the services only if what occurs?

Answer 50

The governing board adopts an ordinance specifying that solid waste fees are billed and collectible as property taxes and those fees are included on the property tax bill for the property receiving the services.