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
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~. Marty Hendrix
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CITY OF FO TH
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BY
M e M Grief M r
APPR >~ m~
CITY .~OJI`"CIS,.
JAN ~ 1 2UU6
City Secretary of ihs
City of Fort Worth, ~'exas
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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
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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
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