Collecting outstanding balances from local residents—including property taxes—has been a costly, time-consuming, and unpleasant task for local governments. Until now.
Farragut worked with NACo Financial Services to launch their national Local Government Debt Setoff service—a program patterned after a successful joint venture between the North Carolina Association of County Commissioners and the North Carolina League of Municipalities which led to recovery of more than $240 million in unpaid taxes.
The Local Government Debt Setoff service enables counties to collect outstanding debts in a timely, cost-effective manner by submitting delinquencies for offset against pending state personal income tax refunds and lottery winnings. And since program operations are supported by a local collection assistance fee charged to the debtor, participating counties incur little if any additional collection costs.