TO: Mayor and Members of City Council
THRU: Lachelle H. Pulliam, City Attorney
FROM: Joy Haddock, Deputy Tax Collector
PWC
DATE: April 28, 2025
RE:
Title
PWC - Determination of Utility Assessment Appeal - 6920 Tayberry Court
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 February 17, 2025, PWC received a Utility Assessment Appeal from Mr. Michael J. Morgan regarding 6920 Tayberry Court, Fayetteville, NC 28306, pursuant to NCGS § 105-381. The subject property is in Phase 5 Project Area 32, Section 1 and was listed on the assessment roll confirmed by City Council on February 10, 2025 for sewer service. Mr. Morgan previously paid to connect to public water, but that was not a levied assessment. Mr. Morgan objects to his parcel being assessed for sewer service. 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. Morgan 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. Morgan submitted a statement of defense to PWC on February 17, 2025. The City Council must respond no later than May 16, 2025.
Mr. Morgan’s statement of defense and supporting documentation is attached for Council’s consideration. PWC’s Assessment Appeal Review Form and supporting documentation (pages 1-2) 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. Morgan previously paid a connection fee for water service.
• Mr. Morgan does not believe his parcel should be assessed for sewer service.
• Alternatively, Mr. Morgan believes he should only be required to pay the difference between $5,000.00 (sewer service assessment) and $3,510.00 (amount he paid for the voluntary connection for water), which is $1,490.00.
Budget Impact:
Unknown
Options:
1. Determine that Mr. Morgan 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. Morgan 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. Morgan has a valid defense to the part of the assessment that includes interest charges through the date of Council’s determination and that only interest charges will be released or refunded; but that he does not have a valid defense to the $5,000.00 assessment levied for sewer service.
Attachments:
6920 Tayberry Appeal Documents