TO: Mayor and Members of City Council
THRU: Lachelle H. Pulliam, City Attorney
FROM: Joy Haddock, Deputy Tax Collector
PWC
DATE: June 23, 2025
RE:
Title
PWC - Determination of Utility Assessment Appeal - 8038 King Road
end
COUNCIL DISTRICT(S):
Council District(s)
6
b
Relationship To Strategic Plan:
Goal I - The City of Fayetteville will be a highly desirable place to live, work and recreate.
Executive Summary:
On March 17, 2025, PWC received a Utility Assessment Appeal from Mr. Donald R. Stoudt, Jr, at 8038 King Road, Fayetteville, NC 28306, pursuant to NCGS § 105-381. PWC sent the appeal to the City Attorney’s Office on May 15, 2025. The subject property is in Phase 5 Project Area 32, East Section 1 and was listed on the assessment roll confirmed by City Council on February 10, 2025 for sewer service. Mr. Stoudt objects to his parcel being assessed for sewer service based on his belief that he is unable to build on the property due to the presence of an overhead Duke Energy electrical transmission line. Under the statute, the governing body of the taxing unit must determine whether the taxpayer has a valid defense to the tax imposed or any part thereof. Based on the statute, it appears that Mr. Stoudt does not have a valid defense to the enforcement of the collection of the $5,000.00 tax assessed upon his property.
Background:
On January 13, 2025, the City Council held a public hearing on the assessment roll proposed for the extension of a sanitary sewer collection system to serve all or a portion of Area 32 East Section 1. On February 10, 2025, the City Council adopted a resolution confirming the Phase 5 Area 32 East Section 1 assessment roll and levying assessments.
NCGS § 160A-216 authorizes cities to make special assessments against benefited property within its corporate limits for constructing, reconstructing, extending, or otherwise building or improving water, sewage collection and disposal systems of all types.
NCGS § 160A-317 and Fayetteville City Code Section 28-5 authorize the City of Fayetteville to require connections to water and sewer service.
Additionally, Section 28-6 of the Code provides that PWC shall have the sole and exclusive right to tap or connect with the water and sewer lines in the municipality, charging for such taps or connections, and any repairs or replacements thereto, the reasonable cost to be fixed by and paid to the commission by the person for whom such work shall be done.
Under NCGS § 105-381, any taxpayer may assert a valid defense to the enforcement of the collection of a tax assessed upon his property. The statute outlines the three valid defenses: 1) A tax imposed through clerical error 2) An illegal tax or 3) A tax levied for an illegal purpose. Upon receiving a taxpayer's written statement of defense and request for release or refund, the governing body of the taxing unit shall within 90 days after receipt of such request determine whether the taxpayer has a valid defense to the tax imposed or any part thereof and shall either release or refund that portion of the amount that is determined to be in excess of the correct tax liability, or notify the taxpayer in writing that no release or refund will be made.
Mr. Stoudt’s reqeust and supporting documentation is attached for Council’s consideration. PWC’s Assessment Appeal Review Form (page 1) is also attached and includes PWC’s findings that none of the three defenses apply to the $5,000.00 assessment and the assessment should be paid in full.
Issues/Analysis:
• Mr. Stoudt does not believe his parcel should be assessed for sewer service because he believes he can not build on the lot.
Budget Impact:
Unknown
Options:
1. Determine that Mr. Stoudt does not have a valid defense to the tax imposed or any part thereof and notify him in writing that no release or refund will be made.
2. Determine that Mr. Stoudt has a valid defense to the tax imposed or a part thereof and release or refund that portion of the amount that is determined to be in excess of the correct tax liability, and notify him of such.
Recommended Action:
Staff recommends that Council determine that Mr. Stoudt does not have a valid defense to the tax imposed or any part thereof, and notify him in writing that no release or refund will be made.
Attachments:
8038 King Road Appeal Documents