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HomeMy WebLinkAboutResolution 3308-01-2006RESOLUTION 3308-12006 WHEREAS, THE CITY OF FORT WORTH (CITY) wishes to defray its costs of collection as authorized by TEX TAX CODE § 33 11 that it incurs under the contract and amendment thereto for collection of delinquent property taxes between CITY and LINEBARGER GOGGAN BLAIR & SAMPSON LLP (`FIRM") entered into pursuant to TEX TAX CODE § 6 30 WHEREAS under said Section 33 11 the governing body of CITY is empowered to authorize the addition of a collection penalty in an amount that does not exceed the amount of the compensation specified in the contract with FIRM NOW THEREFORE be it resolved by the City Council of the City of Fort Worth Section 1. The recitals set forth in this Resolution are true and correct Section 2. An additional penalty on delinquent personal property taxes for tax years 2005 and subsequent years is hereby authorized and imposed as provided by section 33 11 of the Texas Property Tax Code in the amount of 20% of the delinquent tax penalty and interest if the tax becomes delinquent on February 1 of a year and remains delinquent on the 60th day thereafter APPROVED and ADOPTED 31 t day of January 2006 ~' ~= V ~~ l f ~. Marty Hendrix ~. .~~ CITY OF FO TH r BY M e M Grief M r APPR >~ m~ CITY .~OJI`"CIS,. JAN ~ 1 2UU6 City Secretary of ihs City of Fort Worth, ~'exas ~~ t~ City of Fort Worth, Texas Mayor and Council Communication SUBJECT Adopt Resolution Imposing a 20% Penalty for the Early Collection to Tangible Personal Properly Taxes and Amendment to the Contract with Linebarger Goggin Blair and Sampson to Allow Early Collection of Tangible Personal Property Taxes ~_ RECOMMENDATION It is recommended that the City Council 1 Adopt the attached Resolution imposing a 20% penalty on the early collection of delinquent tangible personal property taxes for Tax Year 2005 and subsequent years as provided in Section 33 11 of the Texas Property Tax Code and 2. Amend the contract with Linebarger Goggan Blair and Sampson LLP ("Linebarger") (City Secretary Contract Number 31884) to include as compensation the twenty percent (20%) penalty on the early collection of tangible personal property taxes. DISCUSSION During the 2005 Legislative Session the Legislature added Section 33 11 to the Texas Property Tax Code Under this new section a governmental entity with an outside attorney collecting delinquent taxes can impose an additional penalty on tangible personal property taxes that become delinquent on or after February 1st and remain delinquent for 60 days. Under the statute the penalty imposed may not exceed the amount of compensation specified in the contract with the outside attorney On May 17 2005 (M&C C-20744) the City entered into a contract with Linebarger for the collection of delinquent taxes As compensation for the services provided under the contract, Linebarger receives 20% of the delinquent tax, penalty and interest collected By the adoption of this Mayor and Council Communication the city will impose the 20% penalty on the early collection of tangible personal property taxes, and allow Linebarger to begin the early collection of delinquent personal property tax accounts. FISCAL INFORMATION/CERTIFICATION The Finance Director certifies that this action requires no material expenditures of City funds. All costs are borne by the law firm and recovered from the delinquent taxpayer as provided by law TO Fund/Account/Centers FROM Fund/Account/Centers Submitted for City Manager's Office by Ori inating Department Head. Additional Information Contact. Richard Zavala (Acting) (6222) Jim Keyes (8517) Cynthia Garcia (7611) Logname• 13ATTYFEEAMENDI Page 1 of 2