My question involves collection proceedings in the State of: North Carolina

I just recieved a letter from craven county tax collector. The letter states that it will submit the dept to North Carolina Department of Revenue for collection by applying the debt against state income tax refund. I say to my self why craven county I havent lived there since 96. I bought 2 vehicles in the 2 yrs I lived there. Both were bought through dealers and the tax was paid. I did have a small tax amount I paid every year for something I cant even remember. It was never over 400 dollars. It says I can contest by filing for a hearing in writing. If not the Setoff Debt Collection Act will take my money.

My Question is: Is this true can they really take my money? I tell you the truth I will never find any info that old to dispute it. It feels illegal and a agianst my right as a tax paying american for the 15 yrs. I pay almost 13k a year in taxes...