Billing For Phase 5 City of Fayetteville Annexation Effective 12:01 a.m. September 30, 2005

Background ! Tax Collector collects real, personal & motor vehicle taxes for the City of Fayetteville under an Interlocal Agreement ! NC statutes require taxes due as a result of an annexation occurring after September 1 to be prorated and are due and payable with taxes for the following year

Proration of Taxes ! Taxes are billable for all full calendar months remaining in the fiscal year on the effective date of annexation ! The City of Fayetteville and Cumberland County operate on a fiscal year that runs from July 1 – June 30 Therefore, taxes are not prorated on a calendar year - January through December

Newly Annexed Areas ! Fayetteville’s annexation became effective 12:01 a.m., September 30, 2005 ! Approximately 20,000 parcels ! Real and personal property taxes for the 9 month period of October 2005 through June 2006 will not be due until September 1, 2006 Will not become delinquent until January 6, 2007

Newly Annexed Areas ! Purchase or renewal of a motor vehicle tag on or after October 1, 2005 will automatically be billed for full amount of County and City taxes and will be billed $5 for Fayetteville’s auto privilege license fee Taxability of a vehicle is determined as of its registration date per NC statute

What Does This Mean? ! No City of Fayetteville taxes will be billed in 2005 for the annexed areas ! In August 2006, real & personal property owners in the annexed areas will receive a bill for the full 12 months of City and County taxes for the period July June 2007 ! In September 2006, real & personal property owners in the annexed areas will receive a bill for City of Fayetteville taxes for the 9 month period October 2005 – June 2006

2005 Tax Bill ! The 2005 tax bills were mailed county-wide on September 30, 2005 ! The 2005 tax bills for the newly annexed areas included: Regular 12 month County tax, LESS 9 months of recreation, fire and special fire tax No City taxes were billed in the annexed area

2005 Example for Annexed Areas (excluding all fees)

2006 Tax Bill ! Regular 2006 tax bills will be mailed county-wide in August 2006 ! Tax bills for the newly annexed areas will include: 12 month County tax EXCLUDING all recreation, fire and special fire tax 12 months of Fayetteville City tax

2006 Annexation Bill AND an additional prorated bill for 9 months Fayetteville City taxes that accrued from the prior (2005) tax year (Oct 1, 2005 through June 30, 2006) will be mailed in September 2006

2006 Example for Annexed Areas (excluding all fees & no tax rate change)

2006 Additional Bill For Annexed Areas (excluding all fees)

Getting The Word Out ! County will coordinate with the City to make this process as smooth as possible. Mortgage Companies, Real Estate Companies, Board of Realtors, Attorneys, etc. Provide list of annexed parcels to Mortgage and Service Companies Post tax information on the County’s Website Post information concerning City services at

Getting The Word Out ! Taxpayers Notification by mail Create informational brochure For questions about City services contact: City Information Line (910) For questions relating to tax bills contact: Customer Service (910)

Summary September 30, 2005 – The 2005 tax bills mailed to include annexed parcels with prorated County fire, special fire, and recreation tax August 18, 2006 – Mail 2006 tax bills – (annexed parcels to be billed for 12 full months City of Fayetteville taxes) September 29, 2006 – Mail 2005 added bill to annexed areas for 9 months (Oct 1, 2005-June 30, 2006) City of Fayetteville taxes