HomeMy WebLinkAboutIR 7210 INFORMAL REPORT TO CITY COUNCIL MEMBERS No. 7210
.*Tfg,fop? To the Mayor and Members of the City Council August 4, 1987
Us
X Subject:Collection of Taxes on Recreational Watercraft
On May 26, 1987 the Governor signed Senate Bill 367 amending the State
Property Tax Code. This legislation provides that boats owned or used by a
family or individual for recreational activities are exempt from personal
property taxes unless the governing body of a taxing unit specifically acts
by resolution to tax all boats.
The 1986 tax roll reflects the following information on boats currently
taxed by the City and the School District.
# Boats Appraisal Tax Revenue
City Only 463 $ 525,674
City & School 4,197 5,518,724
Total City 4,660 6,044,398 $ 44,668.10
Average Tax per watercraft $ 9.59
In accordance with Senate Bill 367, the Tarrant Appraisal District has
informed the City that the estimated charge to the City and Schools for
maintaining current boat appraisals in their data bank plus annual
reappraisals is $43,625 for 1987 and $48,472 for 1988. Including this TAD
charge, our approximate cost for billing and collecting on each boat is:
Initial annual billing per account $ .27
Delinquent billing Feb-June per account 1.35
TAD Charge per account ($21,812/4,660) 4.68
Staff time (from total budget calculation) 1.00
Total $ 7.30
Based on the above information each acount would recognize a net revenue of
$2.29 resulting in a total net revenue to the City of $10,671.
The staff believes that the advantages of continuing the collection
outweigh the possible unpopularity of the levy for the following reasons:
1. The net revenue to the City approximates the cost of one
clerical position in the General Fund.
2. Anticipated development in the north and south portions of
the City near lakes indicates additional future revenues from
this source.
3. If the tax is discontinued, the difficulty and cost for
recreating a data base would be significantly more.
As action to continue the taxation of boats must be taken prior to the
adoption of the 1987 tax rate, the Council will be presented with an
appropriate resolution on the August 11 City Council agenda.
g a
s Harman
C ity Manager
-ISSUED BY THE CITY MANAGER FORT WORTH, TEXAS