After July 1 and before being charged with 2019–20 taxes, the tax collector must make a sworn report to the governing board showing a list of unpaid 2018–19 real property taxes and a list of unpaid 2018–19 personal property taxes that are not liens on real property. The tax collector must also make settlement for the prior year’s taxes before being charged with the current year’s taxes. G.S. 105-373(a).

§ 105-373.  Settlements.

(a)        Annual Settlement of Tax Collector. -

(1)        Preliminary Report. - After July 1 and before he is charged with taxes for the current fiscal year, the tax collector shall make a sworn report to the governing body of the taxing unit showing:

a.         A list of the persons owning real property whose taxes for the preceding fiscal year remain unpaid and the principal amount owed by each person; and

b.         A list of the persons not owning real property whose personal property taxes for the preceding fiscal year remain unpaid and the principal amount owed by each person. (To this list the tax collector shall append his statement under oath that he has made diligent efforts to collect the taxes due from the persons listed out of their personal property and by other means available to him for collection, and he shall report such other information concerning these taxpayers as may be of interest to or required by the governing body, including a report of his efforts to make collection outside the taxing unit under the provisions of G.S. 105-364.) The governing body of the taxing unit may publish this list in any newspaper in the taxing unit. The cost of publishing this list shall be paid by the taxing unit.

(2)        Insolvents. - Upon receiving the report required by subdivision (a)(1), above the governing body of the taxing unit shall enter upon its minutes the names of persons owing taxes (but who listed no real property) whom it finds to be insolvent, and it shall by resolution designate the list entered in its minutes as the insolvent list to be credited to the tax collector in his settlement.

(3)        Settlement for Current Taxes. - After July 1 and before he is charged with taxes for the current fiscal year, the tax collector shall make full settlement with the governing body of the taxing unit for all taxes in his hands for collection for the preceding fiscal year.

a.         In the settlement the tax collector shall be charged with:

1.         The total amount of all taxes in his hands for collection for the year, including amounts originally charged to him and all amounts subsequently charged on account of discoveries;

2.         All penalties, interest, and costs collected by him in connection with taxes for the current year; and

3.         All other sums collected by him.

b.         The tax collector shall be credited with:

1.         All sums representing taxes for the year deposited by him to the credit of the taxing unit or receipted for by a proper official of the unit;

2.         Releases duly allowed by the governing body;

3.         The principal amount of taxes constituting liens on real property;

4.         The principal amount of taxes included in the insolvent list determined in accordance with subdivision (a)(2), above;

5.         Discounts allowed by law;

6.         Commissions (if any) lawfully payable to the tax collector as compensation; and

7.         The principal amount of taxes for any assessment appealed to the Property Tax Commission when the appeal has not been finally adjudicated.

The tax collector shall be liable on his bond for both honesty and faithful performance of duty; for any deficiencies; and, in addition, for all criminal penalties provided by law.

The settlement, together with the action of the governing body with respect thereto, shall be entered in full upon the minutes of the governing body.

(4)        Disposition of Tax Receipts after Settlement. - Uncollected taxes allowed as credits in the settlement prescribed in subdivision (a)(3), above, whether represented by tax liens held by the taxing unit or included in the list of insolvents, shall, for purposes of collection, be recharged to the tax collector or charged to some other person designated by the governing body of the taxing unit under statutory authority. The person charged with uncollected taxes shall:

a.         Give bond satisfactory to the governing body;

b.         Receive the tax receipts and tax records representing the uncollected taxes;

c.         Have and exercise all powers and duties conferred or imposed by law upon tax collectors; and

d.         Receive compensation as determined by the governing body.