Tax bills are mailed in August, and taxes are due on September 1st of each year.  A delinquent notice is mailed the second week in January for any accounts not yet paid.  After January 5th, interest accrues on any unpaid taxes.  The interest rates charged are 2% during the month of January and an additional 0.75% each month thereafter.  The City of New Bern utilizes the remedies available to collect any taxes which have not been paid by January 31st.

Garnishment
In February of each year, the City of New Bern begins a garnishment process to satisfy unpaid taxes.  Pursuant to NC General Statute §105-368, Tax Collectors may attach wages and other compensation, rents, bank deposits, the proceeds of property subject to levy, or any other intangible personal property, including property held in the Escheat Fund to collect funds for payment of unpaid taxes.

Debt Setoff Program
Any unpaid tax bills may be submitted to the North Carolina Department of Revenue for collection by applying the debt against any income tax refund due the taxpayer that is in excess of $50.  All debts collected by the North Carolina Department of Revenue will be charged an additional $15 collection-assistance fee in addition to the amount of the unpaid tax bill.  Taxpayers will receive a notice from the City indicating the account has been submitted to the Department of Revenue for debt setoff.

Foreclosure
Foreclosure is another remedy available to the City to satisfy unpaid real estate property taxes.  The City has two methods under which it may proceed. One method is mortgage-style foreclosure which is handled by the City’s attorney.  The second method is in rem foreclosure in which the Board of Alderman authorizes the Tax Collector to proceed against property with delinquent taxes owed.