- The City of Saginaw has contracted with Tarrant County for ad valorem tax collection for many years. The proposed 2016 contract reduces the collection rate from $1.10 to $0.95 per account.
- Tarrant County will handle all tax billing and collection services. The estimated financial impact is $0.95 per account, with approximately 10,000 accounts totaling around $9,500.
- Staff recommends approving the 2016 tax collection contract with Tarrant County.
Pages from taxation for general practitioners 2016 (september 16 2016) 2 Richard Saad
The drive to collect land transfer tax has intensified, and the government bodies responsible for collecting that tax are reviewing and revising their regulations and policies to ensure no revenues are lost.
Pages from taxation for general practitioners 2016 (september 16 2016) 2 Richard Saad
The drive to collect land transfer tax has intensified, and the government bodies responsible for collecting that tax are reviewing and revising their regulations and policies to ensure no revenues are lost.
VAT is a tax on consumer expenditure and is collected on business transactions and imports. Basically, VAT is charged at each stage in the supply chain of goods and services. The broad effect is that businesses are not affected and VAT is actually borne by the final consumer.
Governments have been imposing taxes on their citizens for centuries and VAT is a system that has been implemented in more than 180 countries worldwide.
The state utilizes the taxes paid to establish, develop and improve infrastructure, facilities, road networks and other public services that are used for the benefit of and in the best interest of its citizens.
Objectives & Agenda :
Chapter XXII of the Income-tax Act, 1961 discusses various Offences under the Income-tax Act and the applicable Prosecutions for such offences. These provisions act as a tool for enabling the Income-tax Officers to effectively enforce Income-tax laws, to deter tax avoidance and evasion and to punish wilful defaulters.
Sections Covered: 275A - 280D
VAT is a tax on consumer expenditure and is collected on business transactions and imports. Basically, VAT is charged at each stage in the supply chain of goods and services. The broad effect is that businesses are not affected and VAT is actually borne by the final consumer.
Governments have been imposing taxes on their citizens for centuries and VAT is a system that has been implemented in more than 180 countries worldwide.
The state utilizes the taxes paid to establish, develop and improve infrastructure, facilities, road networks and other public services that are used for the benefit of and in the best interest of its citizens.
Objectives & Agenda :
Chapter XXII of the Income-tax Act, 1961 discusses various Offences under the Income-tax Act and the applicable Prosecutions for such offences. These provisions act as a tool for enabling the Income-tax Officers to effectively enforce Income-tax laws, to deter tax avoidance and evasion and to punish wilful defaulters.
Sections Covered: 275A - 280D
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One FNG by Group 108 Sector 142 Noida Construction UpdateOne FNG
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Cityof saginaw TAD
1. Meeting Date: 05/17/2016 Staff Contact: Dolph Johnson
Asst. City Manager/Finance Director
Agenda Item: 4c E-mail: djohnson@saginawtx.org
(CC-0516-13)
Phone: 817-230-0325
SUBJECT: Action regarding Ad Valorem Tax Collection Contract with Tarrant County for
Tax Year 2016
__________________________________________________________________________________
BACKGROUND/DISCUSSION:
The City has contracted with Tarrant County for the collection of ad valorem taxes for many years. The
proposed contract is for the tax year 2016. The collection rate in the proposed contract is $.95 per
account. This rate is reduction of fifteen cents from the rate of $1.10 in the tax year 2015 contract.
State law requires the county to charge taxing entities the actual cost for tax collection. Tarrant County
handles all services related to billing and collecting our taxes.
FINANCIAL IMPACT:
The financial impact will be $.95 per account. The number of accounts will be based on the October
tax billing roll certified by the Tarrant Appraisal District. The total estimate cost is $9,500.
RECOMMENDATION:
Staff recommends approval of the ad valorem tax collection contract with Tarrant County for the tax
year 2016.
Attachments
Memo with proposed contract from Kim Quin
2. City of Saginaw
MEMORANDUM
TO: Dolph Johnson
Assistant City Manager/Finance Director
FROM: Kim Quin
Assistant Finance Director/Budget Analyst
SUBJECT: Tarrant County Tax Collections Contract
DATE: April21, 2016
333 West McLeroy
P.O. Box 79070
Saginaw, Texas 76179
817-232-4640
Fax 817-232-4644
www.ci.saginaw.tx.us
Attached is the new contract with Tarrant County for the collection of 2016 property taxes. The
County collection fee will be reduced from one dollar and ten cents ($1.10) to ninety-five cents
($0.95) per account. This fee represents all costs associated with assessment and collections of
property taxes by Tarrant County. State law requires the County to charge taxing entities the
actual costs for tax collection. The City has approximately 10,000 accounts. The total estimated
cost ofthis contract is estimated to be $9,500 for FY 16/17.
3. COUNTY OF TARRANT
§
§
Agreement For the Collection ofTaxes
Agreement made this . __day of , 2016, by and between the Tarrant County Tax
Assessor/Collector, heremafter referred to as ASSESSOR/COLLECTOR, and Tarrant County, hereinafter referred to
as the COUNTY, both of whom are addressed at 100 E. Weatherford Street, Fort Worth, Texas 76196-0301 and the
City ofSaginaw hereinafter referred to as City, whose address is PO Box 79070, Saginaw, TX 76179. '
PURPOSE OFAGREEMENT
The purpose of this Agreement is to state the terms and conditions under which the ASSESSOR/COLLECTOR will
provide assessment and collection services ofAd Valorem taxes levied by the City.
NOW THEREFORE, in consideration ofthe mutual promises herein contained, the parties hereto agree as follows:
I.
SERVICES TO BEPERFORMED
The ASSESSOR/COLLECTOR agrees to bill and collect the taxes due and owing on taxable property upon which the
City has imposed said taxes. The ASSESSOR/COLLECTOR shall perform the said services in the same manner and
fashion as Tarrant County collects its own taxes due and owing on taxable property. The services performed are as
follows: receiving the Certified Appraisal Roll from the appropriate Appraisal District and monthly changes thereto;
providing mortgage companies, property owners and tax representatives, tax roll and payment data; providing all
necessary assessments of taxes and Truth in Taxation calculations as required; the transmittal oftax statements via the
U.S. Mail or electronic transfer of data; and payment processing. All City disbursements, made by check or by
electronic transfer (ACH), for collected tax accounts will be made to the City on the day the COUNTY Depository Bank
indicates the mandatory assigned "float" period has elapsed and the funds are posted to the collected balance. Ifany daily
collection total is less than one hundred dollars ($100.00), the disbursement may be withheld until the cumulative total of
taxes collected for the City equals at least one hundred dollars ($100.00), or at the close ofthe month.
II.
REPORTS
The ASSESSOR/COLLECTOR will provide the City the following reports, ifrequested:
Daily:
Weekly:
Monthly:
Annual:
General Ledger Distribution Report
Detail Collection Report (Summary)
Tax Roll Summary (Totals Only)
Year-to-Date Summary Report
Detail Collection Report (Summary)
Distribution Report (Summary)
Delinquent Tax Attorney Tape
Paid Tax Roll
Delinquent Tax Roll
Current Tax Roll
A selection of the above listed Reports will only be available by internet access. The ASSESSOR/COLLECTOR will
provide the City the General Ledger Revenue & Expense Report monthly as required by Sec. 31.10 of the Texas
Property Tax Code.
IlL
COMPENSATION
In consideration of the services to be performed by the ASSESSOR/COLLECTOR, compensation for the services
rendered is a rate ofninety-five cents ($0.95) per account located within Tarrant County, and two-dollars and sixty cents
($2.60) per account located outside Tarrant County. The number ofaccounts billed will be based on the July 25 billing
roll certified to the ASSESSOR/COLLECTOR, net ofsubsequent account additions and deletions made by the Appraisal
District. The ASSESSOR/COLLECTOR will invoice for these accounts by January 31, 2017 with payment to be
received from the City by February 28, 2017.
The scope ofservices identified in this contract does not include the administration ofa rollback election. In the event of
a successful rollback election, these costs incurred by the Tarrant County Tax Office will be separately identified, billed,
4. and paid by the entity.
IV.
AUDITS
The ASSESSOR/COLLECTOR will provide to the City auditor necessary explanations of all reports and access to
ASSESSORI~OLLECTO.R in-house .tax system computer terminals to assist the City auditor in verifying audit samples
of the fmancial data previously provided by the ASSESSOR/COLLECTOR during the past audit period. Additional
support for entity verification or entity auditor verification is not a part of this contract. Each request for support will be
reviewed individually. Costs for providing audit support will be determined by the ASSESSOR/COLLECTOR and will
be charged to and must be paid by the City.
v.
TAX RATE REQUIREMENT
The City will provide the ASSESSOR/COLLECTOR, in writing, the City's newly adopted tax rate and
exemption schedule to be applied for assessing purposes by Friday, September 16, 2016. Under authority of
Section 31.01 (h) of the Property Tax Code, any additional cost of printing and mailing tax statements because of late
reporting ofthe tax rate or the exemption schedule will be charged to and must be paid by the City.
The tax rate and the exemption schedule for each ofthe last five (5) years in which an ad valorem tax was levied, or all
prior years where there remains delinquent tax, must be furnished in writing to the ASSESSOR/COLLECTOR at the
time ofthe initial contract.
VL
COMPLIANCE WITH APPLICABLE
STATUTES, ORDINANCES, AND REGULATIONS
In performing the services required under this Agreement, the ASSESSOR/COLLECTOR shall comply with all
applicable federal and state statutes, final Court orders and Comptroller regulations. Ifsuch compliance is impossible for
reasons beyond its control, the ASSESSOR/COLLECTOR shall immediately notify the City ofthat fact and the reasons
therefore.
VIL
DEPOSITOF FUNDS
All funds collected by the ASSESSOR/COLLECTOR in the performance ofthe services stated herein for the City shall
be promptly transferred to the account ofthe City at the City's depository bank. All payments to entities will be made
electronically by the automated clearing house (ACH). The ASSESSOR/COLLECTOR has no liability for the funds
after initiation of the ACH transfer of the City's funds from the COUNTY Depository to the City's designated
depository.
VIIL
INVESTMENT OF FUNDS
The City hereby agrees that the COUNTY, acting through the COUNTY Auditor, may invest collected ad valorem tax
funds ofthe City during the period between collection and payment. The COUNTY agrees that it will invest such funds
in compliance with the Public Funds Investment Act. The COUNTY further agrees that it will pay to the City all interest
or other earnings attributable to taxes owed to the City. All parties agree that this Agreement will not be construed to
lengthen the time period during which the COUNTY or the ASSESSOR/COLLECTOR may hold such funds before
payment to the City.
IX
REFUNDS
Refunds will be made by the ASSESSOR/COLLECTOR except as set forth herein. The ASSESSOR/COLLECTOR
will advise the City ofchanges in the tax roll which were mandated by the appropriate Appraisal District.
The ASSESSOR/COLLECTOR will not make refunds on prior year paid accounts unless the prior year paid accounts
for the past five (5) years are provided to the ASSESSOR/COLLECTOR.
5. All refunds of overpayments or erroneous payments due, but not requested, and as described in Section 31.11 of the
Texas Property Tax Code, will after three years from the date of payment, be proportionately disbursed to those entities
contracting with the ASSESSOR/COLLECTOR. The contract must have been in force, actual assessment and collection
functions begun and the tax account was at the time ofthe over or erroneous payment within the City's jurisdiction. The
proportional share is based upon the City's percent ofthe tax account's total levy assessed at the time of receipt of the
over or erroneous payment.
In the event any lawsuit regarding the collection oftaxes provided for in this agreement to which the City is a party, is
settled or a fmal judgment rendered, and which final judgment is not appealed, and the terms of such settlement
agreement or fmal judgment require that a refund be issued by the City to the taxpayer, such refund shall be made by
ASSESSOR/COLLECTOR by debiting funds collected by ASSESSOR/COLLECTOR on behalf of the City and
remitting such refund to the taxpayer in conformity with the terms ofthe settlement agreement or fmaljudgment.
X
DELINQUENT COLLECTIONS
The ASSESSOR/COLLECTOR will assess and collect the collection fee pursuant to Sections, 33.07, 33.08, 33.11 and
33.48 of the Property Tax Code, when allowed. The ASSESSOR/COLLECTOR will collect attorney fees that are
specified by the City through written agreement with a delinquent collection Attorney. The ASSESSOR/COLLECTOR
will disburse the amount directly to the City for compensation to a Firm under contract to the City.
Ifthe delinquent collection Attorney contracted by the City requires attendance ofASSESSOR/COLLECTOR personnel
at a court other than the District Courts in downtown Fort Worth, and the COUNTY is not a party, the employee's
expenses and proportionate salary will be the responsibility ofthe City and will be added to the collection expenses and
charged to the City.
The ASSESSOR/COLLECTOR will not be responsible for the collection of prior year delinquent accounts unless all
delinquent accounts information is provided to the ASSESSOR/COLLECTOR.
XI.
TERM OFAGREEMENT
This Agreement shall become effective as ofthe date hereinabove set out, and shall continue in effect during the 2016
tax year, unless sooner terminated by providing sixty (60) day written notice, as outlined in paragraph XII.
XII.
NOTICES
Any notices to be given hereunder by either party to the other may be effected, in writing, either by personal delivery or
by mail, registered or certified, postage prepaid with return receipt requested. Mailed notices shall be addressed to the
address of the parties as they appear in the introductory paragraph of this Agreement, but each party may change this
address by written notice in accordance with this paragraph.
6. XIIL
MISCELLANEOUS PROVISIONS
This instrument hereto contains the entire Agreement between the parties relating to the rights herein granted and
obligations herein assumed. Any oral representations or modifications concerning this instrument shall be ofno force or
effect.
This Agreement shall be construed under and in accordance with the laws ofthe State ofTexas, and all obligations ofthe
parties created hereunder are performable in Tarrant County, Texas.
This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective legal
representatives and successors.
In case any one or more ofthe provisions contained in this Agreement shall for any reason be held to be invalid, illegal,
or unenforceable in any respect, such invalidity, illegality, or enforceability shall not affect any other provision hereof
and this Agreement shall be construed as ifsuch invalid, illegal, or unenforceable provisions had never been contained.
This Agreement and the attachments hereto constitutes the sole and only agreement ofthe parties hereto and supersedes
any prior understandings or written or oral agreements between the parties respecting the within subject matter.
Executed on the day and year first above written, Tarrant County, Texas.
8~----------------------
RONWRIGHT,
TAXASSESSOR/COLLECTOR
TARRANT COUNTY
FOR City ofSaginaw
8~---------------------
TITLE: __________________
FOR TARRANT COUNTY:
8~----------------------
8. GLEN WHITLEY
TARRANT COUNTYJUDGE
APPROVED AS TO FORM:
8~------------------------
CRIMINAL DISTRICT ATTORNEY'S OFFICE*
DATE
DATE
DATE
DATE
*By law, the Criminal District Attorney's Office may only approve contracts for its clients.. We reviewed this docume~t as to fo~ from our
client's legal perspective. Other parties may not rely on this approval. Instead those parttes should seek contract revtew from mdependent
counsel.