GENERAL ASSEMBLY OF NORTH CAROLINA

SESSION 1991

H	2 

HOUSE BILL 308
Committee Substitute Favorable 4/23/91

Short Title:  Extend Lockbox Tax Collection.	(Public)
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Sponsors:
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Referred to:  
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March 25, 1991

A BILL TO BE ENTITLED
AN ACT TO ALLOW LOCAL GOVERNMENTAL UNITS TO CONTRACT WITH FINANCIAL INSTITUTIONS FOR RECEIPT OF PAYMENTS OF DELINQUENT PROPERTY TAXES AND INTEREST.
The General Assembly of North Carolina enacts:
Section 1.  G.S. 105-321(e) reads as rewritten:
"(e)	The governing body of a taxing unit may contract with a bank or other financial institution for receipt of payment of taxes payable at par and of delinquent taxes and interest for the current tax year.  A financial institution may not issue a receipt for any tax payments received by it, however.  Discount for early payment of taxes shall be allowed by a financial institution that contracts with a taxing unit pursuant to this subsection to the same extent as allowed by the tax collector.  A financial institution that contracts with a taxing unit for receipt of payment of taxes shall furnish a bond to the taxing unit conditioned upon faithful performance of the contract in a form and amount satisfactory to the governing body of the taxing unit.  A governing body of a taxing unit that contracts with a financial institution pursuant to this subsection shall publish a timely notice of the institution at which taxpayers may pay their taxes in a newspaper having circulation within the taxing unit.  No notice is required, however, if the financial institution receives payments only through the mail."
Sec. 2.  This act is effective upon ratification.