HomeMy WebLinkAboutO-2003-2631
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5T ATE OF TEXAS
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ORDINANCE # ~ OlJ~ - ~ l, j, I
COUNTY OF HARRIS
AN ORDINANCE PROVIDING FOR A PENALTY TO DEFRAY COSTS OF
COLLECTING DELINQUENT PROPERTY TAXES PURSUANT TO TEXAS TAX
CODE SECTIONS 33.07 AND 33.08
WHEREAS, It has Deen and remains the longstanding policy of the CITY OF LA
PORTE that the expenses of collecting delinquent taxes owed to the City should not
constitute an unfair burden on the general revenue and on the taxpayers who pay on
time, and should be borne instead by the delinquent properties and their owners who
are responsible for causing such expenses, and
WHEREAS, the CITY OF LA PORTE, City Council, is authorized by the
provisions of Sections 33.07 and 33.08 of the Texas Property Tax Code to impose an
additional penalty to defray the costs of collecting delinquent taxes due to the City, and
WHEREAS, the provisions of Section 6.30 of the Texas Property Tax Code have
been complied with and an additional penalty of 20% of all delinquent taxes, penalties
and interest due and unpaid as of July 1, 2003 to CITY OF LA PORTE is appropriate
and needed to defray the delinquent tax collection cost;
NOW THEREFORE BE IT RESOLVED by the City Council that the CITY OF LA
PORTE adopts and ratifies the additional twenty (20%) percent penalties to defray the
costs of collection of delinquent taxes, as authorized by Texas Tax Code, Sections
33.07 and 33.08 and under preceding Texas law, for the 2002 tax year, and for each
succeeding year thereafter.
Passed and approved this the _I ~
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,2003.
Attested:
Approved:
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City Attorney, Knox Askins
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AMENDMENT TO AGREEMENT FOR THE COLLECTION
OF DELINQUENT TAXES
STATE OF TEXAS
COUNT OF HARRIS
This document is intended to, and does, amend and modify the Agreement for the
collection of delinquent taxes entered into by and between the City of La Porte (Taxing
Authority), ~d Perdue, Brandon, Fielder, Collins and Mott, LLP (the.Finn) dated April 9, 2001;
Ordinance No. 2001-2483. The amendments and modifications herein shall only affect
paragraph V of the original contract, and shall not change or modify any other provision thereof.
In consideration of the Firm representing the District in the collection of their delinquent
taxes, it is agreed that Paragraph V of the Contract for the Collection of Delinquent Taxes, as
described above, is amended and modified as follows:
v
Taxing Authority agrees to pay the Firm as compensation for services rendered
hereunder, the percentage as set forth below, of the total amount of all delinquent taxes, penalty
and interest which are subject to this contract and which are actually collected and paid to the
Taxing Authority's Collector of Taxes, when an equal amount of Section 33.07 or 33.08
penalties is recovered from the taxpayer. Other taxes, including current taxes, which are turned
over to the Firm by the Taxing Authority's Tax Assessor-Collector because of the necessity of
filing claims in Bankruptcy, with other Federal authorities, or for other reasons, shall become
subject to the terms of this contract at the time they are turned over to the Finn and the Firm shall
be entitled to the appropriate percentage, as set forth below, of any amounts of delinquent taxes,
penalties, and interest actually received by the Taxing Authority, and also the appropriate
percentage, as set forth below, of current taxes actually received by the Taxing Authority when
such percentage is actually recovered fonn the taxpayer, if collected prior to July 1 SI of any tax
year, upon order of the Court
Compensation Amounts
15% oftax year 2001 and prior years tax, penalty and interest collections;
20% of tax year 2002 and subsequent years tax, penalty and interest collections.
Signed this M:- day of ~ 2003.
City of La Porte
Perdue, Brandon, Fielder, Collins & Mott, LLP
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REQUEST FOR CITY COUNCIL AGENDA ITEM
Agenda Date Requested: 5/12/03
Appropriation
Requested By: Cynthia Alexander
Source of Funds:
N/A
Department:
Finanep.
Account Number:
Report:
Resolution:
Ordinance:
x
Amount Budgeted:
Exhibits: Ordinance
Amount Requested:
Exhibits: Amendment to delinquent tax collection contract
Budgeted Item: YES NO
Exhibits
SUMMARY & RECOMMENDATION
Section 6.30 @ of the Texas Property Tax Code was amended to allow an attorney's compensation to not exceed
20% of the amount of the delinquent tax, penalty, and interest collected. On February 11, 2003 La Porte ISO
amended their contract with Perdue, Brandon, Fielder, Collins & Mott to raise the collection fee from 15% to 20%.
The City of La Porte has been at 15% for 21 years. This is a pass through cost and will not affect the city's budget.
This change will reduce administrative costs as well as cause less confusion to our citizens do to the uniformity. At
this time we are requesting that the City of La Porte increase our attorney compensation to coincide with La Porte
ISO.
Action Required bv Council:
Approve ordinance to increase attorney compensation to 20% and to amend agreement for the Collection of
Delinquent Taxes.
Approved for City Council A2enda
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