1981-11-04 Regular Meeting - Laserfiche WebLink

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r • • • MEMORANDUM TO: James Hudgens DATE: October 20, 1981 FROM: Betty Blackmon SUBJECT: "Additional Penalty" to Delinquent Taxpayers In section 33.07 of the new Property Tax Code, the State of Texas has now made it possible to add on and collect "Additional Penalty" (attorney fees) for all delinquent taxes. In order for this process to be instituted by the City of La Porte an ordinance must be adopted by the City Council. The City of La Porte retains the services of a delinquent tax attorney to represent the city in all matters pertaining to delinquent taxes. For this service our tax attorney is paid fifteen percent (15a) of all monies collected from delinquent taxes, including taxes for. the current year which are still due and which may be collected after July 1st of the current tax year. This means the taxpayer that pays his taxes on time is paying this fifteen percent (15~) penalty for the attorney fees for the delinquent taxpayer. As an example, a delinquent taxpayer paying a delinquent tax statement under our present system, the tax statement is for the tax years 1979 and 1980, a total of $358.50 which includes taxes, penalty and interest. Of this $358.50 the city must take out the 15o for attorney fees, $53.78 and send this amount to our delinquent tax attorney, the city would net $304.72 from this delinquent tax collection. If the "Additional Penalty" (attorney fees) were instituted the city would collect $358.50 plus $53.78, a total of $412.28, the city would net $358.50, and send our tax attorney the "Additional Penalty" of $53.78. It is the consensus of opinion from .the tax office and our delinquent tax attorney that the "Additional Penalty" (attorney fees) ordinance should be adopted and the fifteen percent (150) attorney fees ("Additional Penalty") should be passed on to the delinquent taxpayer who i fired the additional fees . ~-,: .~=~~~~v Tax Assessor Collector City of La Porte E/