City tax settlement contains conflicting collection rates

Kinston’s property tax collection rate declined during the recently completed fiscal year, according to an annual settlement the City Council will consider Tuesday.

A memorandum from Finance Director Donna Goodson lists the city’s fiscal year 2025-26 collection rate at 96.94%. The previous year’s settlement reported a collection rate of 98.47%, representing a decline of 1.53 percentage points.

The annual settlement reports approximately $13.27 million in current-year taxes collected and $418,246.75 remaining receivable after adjustments.

The packet gives slightly different collection rates in different sections. Goodson’s memorandum and the proposed council resolution use 96.94%, while the current-year summary in the county’s settlement report lists 96.97%.

The detailed report also lists approximately $720,348 in outstanding real and personal property taxes from tax years 2015 through 2025. The total includes older delinquent accounts as well as current-year taxes.

Outstanding taxes are not automatically forgiven when council accepts the annual settlement. The proposed resolution says the tax collector remains responsible for using lawful collection methods to pursue delinquent taxes.

The report also includes insolvent personal property taxes. Those accounts involve taxpayers who do not own real estate and whose personal property taxes remain unpaid after collection efforts. The city’s memorandum says collection efforts on those accounts are continuing.

North Carolina law requires the tax collector to provide an annual accounting of the taxes charged for collection, the amount collected, adjustments and the amount that remains unpaid.

Council is being asked to accept the settlement submitted by the Lenoir County tax collector. Acceptance does not release the collector from responsibility for any shortage or error discovered later.

The Kinston City Council will meet at 5:30 p.m. Tuesday, Aug. 4, at City Hall, 207 E. King St. The meeting will also be livestreamed on the city’s YouTube channel, @thecityofkinston.