THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Monday, April 8, 1996 TAG: 9604080136
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: BY JEFF HAMPTON, CORRESPONDENT
DATELINE: ELIZABETH CITY LENGTH: Medium: 95 lines
Pasquotank County Deputy Sheriff J.C. Ferrell was surprised when nearly a dozen people gathered for the auction of three acres on Four Forks Road.
``This is the biggest crowd we've had in a while,'' Ferrell, who supervises about 30 such auctions a year, told county tax collector Bill Ricks. Usually, only one or two people come.
The auction, now a 60-year tradition, had been advertised to take place on the courthouse steps. But on Tuesday, the business was carried out in the foyer while a sharp wind whistled outside.
Ricks was there to help oversee the sale of property belonging to the heirs of Greanada Johnson. The property, like all that is auctioned off by the county, was long overdue on taxes.
The minimum bid was set at $829.31, just enough to pay the taxes, the interest on the tax lien and the county's collection costs.
``One thousand,'' a man called to begin the bidding.
``Eleven hundred,'' said Lloyd Banks, one of Johnson's heirs. He wanted to buy the property rather than pay the taxes and still scramble for ownership with a dozen or more other heirs.
``Twelve hundred,'' said Tommy Stevenson. He wanted the property for farming, he said.
The bidding stalled momentarily at $1,600.
``Sixteen hundred going once,'' said Ferrell.
``Eighteen hundred,'' said Banks.
The Johnson property came to the auction block only after months of attempts to get someone to pay the taxes on it. The tax laws call it in-rem foreclosure.
``This is a process we use as a last resort to get taxpayers to pay their taxes on real estate,'' Ricks said.
It takes two years, several newspaper notices, letters and bills to the owner, and numerous official documentations before property goes to the sheriff for auction. The sheriff also has to notify the owners and advertise repeatedly before he can auction it.
``At any time during the process, they can come here and say, `I'm willing to make monthly payments,' '' Ricks said.
Counties vary on how aggressively they collect real estate taxes. Ricks, a soft-spoken, easygoing man, has been Pasquotank County's tax collector for 15 years, after a first career as a Coast Guard pilot. He means to collect no more and no less than what's due the county.
``Taxes are only fair when everybody has to pay,'' Ricks said. ``The people who pay their taxes pay me to collect everybody's taxes.''
Most people pay without a beef, but some want to fight over it, literally. One man came to Ricks' office steaming mad. His property was to be auctioned if he didn't pay thousands of dollars in back taxes. Before it was over, the man took a swing at Ricks. Ricks, who stands about 6 feet 3 inches tall, grabbed him by the arms and pinned him against the wall until the sheriff came.
``Some might consider me Dastardly Dan, the tax man, but we do not come in the dark of night to take property,'' he said. ``They get plenty of notification and numerous opportunities to work it out.''
Currently, 999 people owe back taxes, ranging from $1.07 to nearly $16,000. The sheriff auctions about 30 pieces of property a year.
In-rem foreclosures began in the late 1930s, said Bill Campbell, a lawyer with the Institute of Government in Chapel Hill. Before that, it was called the sheriff's sale.
The law once allowed anyone to pay the tax bill on a piece of property, and then foreclose on the property themselves.
``That didn't happen very often,'' Campbell said. The state repealed the option in 1983.
Usually, the auctioned property is not valuable, but it can be. Recently, a piece on Walker Avenue in Elizabeth City sold for $25,000. Two contractors wanted it. The tax bill and opening bid was $7,000.
``The property could be waterfront property worth $100,000,'' Ferrell said. ``And if the taxes and expenses were only $100, then that's the opening bid.''
Sometimes, no one wants the property. In that case, Ricks pays the opening bid on behalf of the county. Later, the county attorney arranges for the sale of the property.
Last Tuesday's auction of the Johnson land continued upward until Stevenson bid $3,800.
``Thirty-eight hundred going once,'' Ferrell called. ``Going twice.''
Banks remained silent. He or anybody else will have 10 days to upset that bid. If that happens, then Ferrell has to advertise again and hold another auction. Sometimes, the paperwork on one property becomes several inches thick.
For now, though, Ferrell points to Stevenson and declares an end to a marathon effort to collect the taxes on one piece of land:
``Sold for thirty-eight hundred dollars.'' ILLUSTRATION: Color photo by JEFF HAMPTON
Deputy J.C. Ferrell runs an auction at the courthouse last week.
Pasquotank County sells about 30 pieces of property a year.
by CNB