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Have you ever looked at your property tax bill and wondered what would happen if you didn’t pay it? Have you ever been afraid that your property would be immediately seized if you didn’t pay your taxes on time? 

Beaufort County Tax Collector, Wyn Kinion, spoke with the Daily News to clear up many misconceptions and fears related to paying property taxes. 

Kinion has been the Beaufort County tax collector since 2013. Before that, he worked in the North Carolina Department of Revenue. 

Kinion said the largest misconception surrounding property taxes is that if they are not paid, then the property is immediately seized or the home enters a foreclosure. “It’s not that simple,” he said. 

Money from property taxes goes into the county’s general fund and county commissioners decide how it is spent. Kinion’s office does not have any say in how that money is spent. 

Starting in August, property tax bills are sent out to taxpayers. Though the bill states that taxes are due on September 1, people have until January 5 to pay their taxes interest free (unless January 5 falls on a weekend, then it moves to January 6 or 7). After January 7, a 2% interest is added to it then three-quarters of a percent is added every month thereafter. 

Kinion stressed that if a taxpayer is unable to pay their property taxes in one payment, they should set up a payment plan in August. If taxes are not paid in full by Jan. 5, they are still delinquent; however, Kinion’s office already knows voluntary payments are being made by those on a scheduled plan. 

Payment plans can be as long as ten months if taxpayers set up plans in August, because taxes have to be collected by June 30, or the end of the fiscal year. “We want to do everything we possibly can to help the taxpayers,” Kinion said. 

Kinion started implementing payment plans shortly after being hired in Beaufort County. Noticing the county’s population, there were several factors he and his office had to consider when collecting taxes from residents. Payment plans give all taxpayers an opportunity to pay in a timely manner without repercussions. 

“As the collector there are certain circumstances I have to review; I have to look at. There are a lot of elderly people in this county, a lot of fixed incomes in this county, a lot on disability. I have to review those accounts and determine the length of time that they may have to go,” he continued.

In Mid-January, Kinion’s office sends out past due notices to taxpayers who have yet to pay – letting them know they have an additional 15 days to pay. Then a second notice is sent out for real property if payments are still past due. 

Once 30 days have passed from Jan. 5 without payment and both notices have been sent, under state law, Kinion is allowed to use necessary collection means necessary to collect back taxes. “We have not started those procedures in the past several years until both notices have gone out,” Kinion said. “And at least had some time on the second notice before we start those proceedings. We’re not starting those on Jan. 5.” 

In 2024, 96% of taxpayers in Beaufort County paid their taxes before any legal actions were taken, Kinion said. 

If a percentage of taxpayers are not paying their bills, how much money is the county losing out on? In 2023, the levied amount was $36, 412,566.90. Kinion’s office collected $36,036,370.99. Therefore, the amount of unpaid money was just under $377,000. In 2022, the remaining total of unpaid taxes was around $250,000. Kinion speculated that inflation may have caused an increase in the number of unpaid bills. 

For the remaining 4% of taxpayers who did not pay, a garnishment was placed on their bank account, or a levy. Kinion’s office can place garnishments on a person’s wages or their rent or they foreclose on homes. 

Hearing residents speak about foreclosures at a recent revaluation community forum “upset” Kinion “the most” from the forums, because he could “actually see in the room, the fear in people’s faces like, ‘they’re just going to take our house, they’re just going to take my house.’” 

Before Kinion started working for Beaufort County, the county commissioners voted to allow a piece of real property to be delinquent for two years and over $300 in liability before it could go into foreclosure. 

“So, before I even start the process of doing [a foreclosure], it has to be two years in arrears which means we’re still trying to do everything possible to collect. Some of those may not go into foreclosure until year three, because we may be getting money.” 

“Taxpayers have two years,” Kinion said. “To me, it is the best thing the county commissioners did…The general statutes tell me I could foreclose on it today for 2024 bills, I could foreclose in the same year on those bills.” Many North Carolina counties, he said, foreclose on real property in the same year and have collection rates of 99%. 

Once a property has gone into foreclosure, it is turned over to a foreclosure attorney. If the property owner wants to pay back taxes on it, then they are able to. If not they are allowed to speak to the attorney. Too, the attorney can do an audit of the property. After an audit is completed, the attorney secures a judgement from a judge and lists the property for sale. 

Another thing Kinion heard residents speak about at revaluation meetings is the county tax rate. He said residents were taking last year’s tax rate and applying it to their updated property values. 

Kinion said doing this gives residents an inaccurate estimate of what their taxes may be for 2025, because the county commissioners have yet to set a new tax rate. County commissioners will set a new tax rate before their annual budget is due on July 1. 

“Everybody is looking at their new values and they’re saying, ‘okay, the current tax rate is .625.’ So, they’re automatically believing that their taxes are going to go up by that amount. It has been emphasized by our County Manager, Brian Alligood, and there are county commissioners that are saying revenue neutral. Revenue neutral means they want to get the tax rate as close to the figure that you’re paying your taxes now,” Kinion said, adding that an undetermined growth factor will be included. 

Therefore, it is better for residents to wait until the county commissioners have established revenue neutral before trying to predict what their tax amount will be.