Delinquent Tax Sign Mandate Sparks Backlash from Local Governments

Local government administrators are voicing their opposition to a new state law that requires them to install signs on properties with delinquent taxes, citing a host of logistical challenges, increased costs, and the potential for backlash from property owners. The law, which was passed without much input from those tasked with implementing it, has left many local officials scrambling to find a way to comply while minimizing the burden on taxpayers.

Tackling the Logistical Nightmare of Delinquent Tax Sign Installations

The new law, known as Session Law 2024-45, directs tax collectors' offices to visit each delinquent property and install a sign listing the owner's name, a description of the parcel, the amount of taxes owed, and a warning about potential penalties, including foreclosure. This process is set to take place between March 1 and June 1 each year, coinciding with the existing requirement to publish the names of delinquent taxpayers in a local newspaper.Local government administrators, such as Haywood County's tax collector Sebastian Cothran and county manager Bryant Morehead, have expressed concerns about the feasibility of implementing this mandate. Cothran noted that in his county of 62,000 residents, there are typically around 3,000 delinquencies each year, making the task of installing individual signs a daunting one.

Navigating the Challenges of Rural Landscapes

Haywood County, like many rural areas, presents unique challenges for the sign installation process. With a vast, 554-square-mile area and low population densities outside of its four incorporated municipalities, the county lacks the resources to efficiently carry out the work. Morehead estimates that the process could take weeks or even months, requiring the county to either fund a dedicated in-house position or hire a contractor, both of which would come at a cost to taxpayers.

Securing Access to Private Property

Another significant hurdle is the issue of accessing private property to install the signs. Morehead noted that in Haywood County, it is generally considered unwise for someone to wander onto private property without the owner's permission, regardless of the authority granted by the law. This could necessitate the county obtaining written right-of-entry agreements with each property owner, a process that Morehead described as potentially impossible if there are 3,000 delinquencies.

Addressing Logistical Challenges and Potential Backlash

The law also raises questions about what happens if a property owner removes the sign after it has been installed. Would the tax collector's office have to return and install a new sign, potentially multiple times? And how would they even know the sign had been removed in the first place? These logistical challenges, combined with the potential for backlash from property owners, have led local officials to question the effectiveness of the law in achieving its intended goal of reducing delinquencies and increasing tax collections.

The Burden on Smaller Municipalities

The impact of the new law is not limited to larger counties like Haywood. Smaller municipalities, such as Waynesville, Canton, Maggie Valley, and Clyde, also have to contend with the added workload and costs associated with the sign installations. These towns often have smaller staffs and fewer resources, making the implementation of the policy even more challenging.

A Statewide Concern

The concerns raised by local government administrators are not isolated to Haywood County or the western region of North Carolina. Rockingham County Manager Lance Metzler, whose county has a population of 93,000, estimates that he would have to install around a thousand signs, despite his staff's lack of capacity to take on the additional work.

Seeking a Legislative Solution

In response to these concerns, local legislators, including Rep. Mark Pless (R-Haywood) and Sen. Kevin Corbin, have expressed a desire to repeal the provision before the sign posting deadline. They acknowledge the need for regulatory reform but believe this particular policy was not adequately vetted with the local officials responsible for its implementation.As the General Assembly reconvenes in the new year, there may be a window of opportunity to address this issue before tax collectors are required to begin the sign installation process. With bipartisan support from lawmakers who have firsthand experience in local government, there is hope that the delinquent tax sign mandate can be repealed or significantly modified to alleviate the burden on local communities.