0893F .+
ORDINANCE NO. 893--0FFICIAL RECORD
AN ORDINANCE OF THE CITY OF SOUTHLAKE ESTABLISHING AN
ADDITIONAL PENALTY ON AD VALOREM PERSONAL PROPERTY
TAXES WHICH REMAIN DELINQUENT FOR MORE THAN 60 DAYS
AFTER FEBRUARY 1 OF ANY YEAR AND ESTABLISHING SUCH
PENALTY AND DATE OF IMPOSITION ON OTHER DELINQUENT AD
VALOREM TAXES; PROVIDING A REPEALER CLAUSE; PROVIDING
FOR PUBLICATION IN THE OFFICIAL NEWSPAPER; AND PROVIDING
AN EFFECTIVE DATE.
WHEREAS, the City of Southlake, Texas is a home rule city acting under its charter
adopted by the electorate pursuant to Article XI, Section 5 of the Texas Constitution and
Chapter 9 of the Local Government Code; and
WHEREAS, the 79th Legislature in 2005 added a new §33.11 to the Texas Tax
Code authorizing governing bodies of taxing units which have contracted with an attorney
under §6.30 of such code for the collection of delinquent personal property taxes before
July 1 of the year in which such taxes become delinquent and which remain delinquent for
60 days thereafter to impose a penalty to defray collection costs; and
WHEREAS, the 77th Legislature in 2001 passed H.B. 490 allowing the additional
penalty for delinquent tax collection to be increased from 15% to 20%; and
WHEREAS, the City has contracted with an attorney for the collection of such
delinquent taxes.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
SOUTHLAKE, TEXAS:
SECTION 1.
To defray the cost of collection of delinquent ad valorem taxes pursuant to §6.30,
Texas Tax Code, such taxes which become delinquent on or after February 1 of a year
WASouthlake\Ordinances\Tax Ordinance\Tax collection penalty.wpd (01/31/06) Page 1
shall incur a penalty of 20% of the amount of taxes, penalty and interest due on the dates
set forth below:
(1) For delinquent personal property ad valorem taxes for the years 2005 and
thereafter, such penalty is imposed as provided by §33.11 Texas Tax Code
after the tax remains delinquent on the 60th day after February 1 of such
year;
(2) For taxes which become delinquent under §§ 26.07(f), 26.15(e), 31.03.
31.031, 31.032, or 31.04, Texas T ax Code, such penalty is imposed on June
1 of the year such taxes become delinquent as provided by §33.08, Texas
Tax Code;
(3) For all other ad valorem taxes, such penalty is imposed on such taxes that
become delinquent before May 1 and remain delinquent on July 1 of the year
they become delinquent as authorized by §33.07, Texas Tax Code.
SECTION 2.
This ordinance replaces earlier ordinances establishing penalties to offset the cost
of tax collection, but such ordinances shall remain in effect insofar as they establish such
penalties for tax years prior to the date of this ordinance.
SECCTION 3.
The City Secretary of the City of Southlake is hereby directed to publish the
proposed ordinance or its caption and penalty together with a notice setting out the time
and place for a public hearing thereon at least ten (10) days before the second reading of
this ordinance, and if this ordinance provides for the imposition of any penalty, fine or
forfeiture for any violation of any of its provisions, then the City Secretary shall additionally
publish this ordinance in the official City newspaper one time within ten days after passage
WASouthlake\Ordinances\Tax Ordinance\Tax collection penalty.wpd (01/31/06) Page 2
of this ordinance, as required by Section 3.13 of the Charter of the City of Southlake.
SECTION 4.
This ordinance shall be in full force and effect from and after its passage and
publication as required by law, and it is so ordained.
PASSED AND APPROVED ON FIRST READING ON THIS 1+ DAY OF
, 2006.
M,KYOR
AT EST:
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So
CITY SECRETARY '- °•..1..y.•••'
A///1111618,`
PASSED AND APPROVED ON SECOND READING ON THIS DAY OF
! , 2006.
MAYOR
ATTEST:
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CITY SECRETARY ®�'
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EFFECTIVE:
APPROV T F GALITY:
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City Attorney
WASouthlake\Ordinances\Tax Ordinance\Tax collection penalty.wpd (01/31/06) Page 3
"EXHIBIT A"
CONTRACT FOR THE COLLECTION OF
DELINQUENT TAXES
THE STATE OF TEXAS §
COUNTY OF TARRANT §
THIS CONTRACT is made and entered into by and between the CITY OF
SOUTHLAKE, a political subdivision of the State of Texas, acting by and through its
governing body, hereinafter called Taxing Authority, and TAYLOR, OLSON, ADKINS,
SRALLA & ELAM, L.L.P., Fort Worth, Texas, or their duly authorized representatives,
hereinafter called the Firm.
Taxing Authority agrees to employ and does hereby employ the Firm to enforce by
suit or otherwise the collection of all delinquent taxes, penalty and interest owing to the
Taxing Authority, which the Taxing Authority's Tax Collector refers to the Firm, provided
current year taxes becoming delinquent within the period of this Contract shall become
subject to its terms upon the following conditions:
A. Taxes that become delinquent during the term of this Contract that are not
delinquent for any prior year become subject to the terms of this Contract on the 1 st day
of July, of the year in which they become delinquent or for personal property taxes, the
earliest date permitted by Section 33.11 of the Tax Code, if that date occurs before July
1 St; and
B. Taxes that become delinquent during the term of this Contract on property
that is delinquent for prior years shall become subject to its terms on the first day of
delinquency.
C. Taxing Authority reserves the right to make the final decision as to whether
or not to enforce by suit any delinquent tax account turned over to the Firm for collection.
The Firm is to call to the attention of the collector or other officials any errors, double
assessments or other discrepancies coming undertheir observation during progress of the
work and is to intervene on behalf of the Taxing Authority in all suits for taxes hereafter
filed by any taxing unit on property located within its taxing jurisdiction.
The Firm agrees to make progress reports to the Taxing Authority on request, and
to advise the Taxing Authority of all cases where investigation reveals taxpayers to be
financially unable to pay their delinquent taxes.
W:\Southlake\Agreements\Delinquent taxes.wpd (02/03/06) Page 1
IV.
Taxing Authority agrees to pay the Firm as compensation for services required
Hereunder twenty (20%) percent of the total amount of all delinquent taxes, penalty and
interest as authorized by Section 33.01 of the Texas Property Tax Code, of the years
covered by this Contract which shall be paid to the Firm in the following manner:
Personal Property: Twenty (20%) percent of the total amount of all delinquent
taxes, penalty and interest as authorized by Sections 33.01 and 33.11 of the Texas
Property Tax Code, which are actually collected and paid to the Taxing Authority's
Collector of Taxes; such compensation shall become the property of the Firm at the
time such delinquent taxes, penalty and interest are actually paid to Taxing
Authority's Collector of Taxes.
Real Property: Twenty (20%) percent of the total amount of all delinquent taxes,
penalty and interest as authorized by Section 33.01 of the Texas Property Tax
Code, which are actually collected and paid to the Taxing Authority's Collector of
Taxes by the taxpayer or the result of a forced sale of such real estate; such
compensation shall become the property of the Firm's at the time such delinquent
taxes, penalty and interest are actually paid to the Taxing Authority's Collector of
Taxes whether voluntarily by the taxpayer or from proceeds of a forced sale,
whichever occurs first.
Othertaxes, including current taxes, which are turned overto the Firm bythe Taxing
Authority's Tax Assessor -Collector because of the necessity of filing claims in Bankruptcy
or for any other reason become subject to the terms of this Contract at the time they are
turned over to the Firm and the Firm is entitled to twenty (20%) percent of any amounts
actually received by the Taxing Authority.
Said Collector of Taxes shall pay over said compensation to the Firm monthly by
check. In the event suit is necessary to collect any of the delinquent taxes, penalty and
interest as authorized by Section 33.01 of the Texas Property Tax Code, covered by this
Contract, the Firm agrees to recover as attorney's fees (Section 33.48 of the State Property
Tax Code) on behalf of the Taxing Authority twenty (20%) percent of all such delinquent
taxes, penalty and interest not covered by Section 33.07 and 33.08 of the Texas Property
Tax Code.
V.
Taxing Authority agrees to furnish to the Firm all data and information as to the
name and address of the taxpayer, the legal description of the property, years and amount
of taxes due. Taxing Authority further agrees to update said information by furnishing a list
of paid accounts and adjustments to the Tax Roll as necessary.
VI.
Notwithstanding any other provisions in the Contract, all delinquent personal
property taxes are to be turned over to the Firm for collection 60 days after the delinquency
date for said taxes. A penalty shall be assessed to defray the cost of collecting those taxes
in the same percentage as previously provided for by Contract as provided for by Section
W:\Southlake\Agreements\Delinquent taxes.wpd (02/03/06) Page 2
33.11, Texas Tax Code. All collection penalties or attorney fees collected on those taxes
are the property of the Firm and shall be paid as provided for other taxes in the Contract.
IM
This Contract shall commence on , 2006 and thereafter the
contract shall end when both parties mutually agree: provided, however, that either party
of this agreement shall have the right to terminate this agreement by giving the other party
thirty (30) days written notice of their desire and intention to terminate this agreement; and
further provided that the Firm shall have an additional six (6) months to reduce to judgment
all tax suits and bankruptcies filed prior to the date this agreement becomes terminated;
and all payment agreements entered into prior to the date this agreement becomes
terminated. All collection fees as a result of judgments and bankruptcies becoming final
prior to the expiration of the six month period shall be the property of and payable to the
Firm at the time they are collected.
In consideration of the terms and compensation here stated, the Flrm hereby
accepts said employment and undertakes the performance of this Contract above written.
This Contract is executed on behalf of the Taxing Authority by the presiding officer
of its governing body who is authorized to execute this instrument by Order heretofore
passed and duly recorded in its minutes.
WITNESS the signatures of all parties hereto in duplicate originals this the
day of , A.D., 2006, Tarrant County, Texas.
TAYLOR, OLSON, ADKINS, SRALLA & ELAM, L.L.P.
6000 Western Place
Suite 200
Fort Worth, Texas 76107
(817) 332-2580
AO -
Elizabeth Elam, Partner
CITY OF SOUTHLAKE
City of Southlake
1400 Main Street
Suite 270
Southlake, Texas 76092
(817) 748-8400
Andy Wambsganss, Mayor
ATTEST:
Lori Farwell, City Secretary
W:\Southlake\Agreements\Delinquent taxes.wpd (02/03/06) Page 3
INVOICE
d
Star -Telegram
400 W. 7TH STREET
FORT WORTH TX 76102
RECEIVED
Customer ID: CIT57
Invoice Number: 267843241
Invoice Date:
3/24/06
(817) 390-7761
Federal Tax ID 22-3148254
Terms:
Net due in 21 days
APR ` 4
Due Date:
3/31/06
Bill To:
PO Number:
NO PO
SOUTHLAKE
CITY OFMAIN
OFFICE OF CITY SECRETARY
Order Number:
26784324
1400 MAIN
STE 440
Sales Rep:
073
SOUTHLAKE, TX 76092-7604
Description:
CITY OF SOUTHLA
Publication Date:
3/24/06
Description
LocationCol Depth
Linage MU`
Rate Amount
CITY OF SOUTHLAKE ORDINANCE NO 13580 1 43 43 LINE $0.81 $34.83
THE STATE OF TEXAS
County of Tarrant
Before me, a Notary Public in a
for the Star -Telegram, published
depose and say that the attach
LEGAL DEPT. STAR TLEGRAM
(817) 390-7320
SUBSCRIBED AND SWORN TO BEFORE ME, THIS Saturday, March 25, 2006.
Notary Public
Thank You For Your Payment
S34.83
31 Coordinator
July sworn, did
I dates: BIDS &
Remit To: Star -Telegram Customer ID: CIT57
P.O. BOX 901051 Customer Name: CITY OF SOUTHLAKE
FORT WORTH, TX 76101-2051 Invoice Number: 267843241
Invoice Amount: $34.83
PO Number: NO PO
Amount Enclosed
INVOICE I lk*
Star-Telegram Customer ID: CIT57
400 W.7TH STREET ' Invoice Number: 267036371
FORT WORTH,TX 76102 �� .v
(817)390-7761 Invoice Date: 3/4/06
Federal Tax ID 22-3148254 MAR 1 , 2006 Terms: Net due in 21 days
Due Date: 3/31/06
Bill To:CITY OF SOUTHLAKE OFFICE OF CITY SECRETARY PO Number: NO PO
1400 MAIN ST Order Number: 26703637
STE 440 Sales Rep: 073
SOUTHLAKE, TX 76092-7604 Description: CITY OF SOUTHLA
Publication Date: 3/4/06
Description Location Col Depth Linage MU Rate Amount
CITY OF SOUTHLAKE Notice is he 13580 1 55 55 LINE SO.8 I $44.55
CITY OF
SOUTHLAKE
Notice is hereby given
by.the City Council of
the City of Southlake, Net Amount: $44.55
Texas, that a public
hearing will be held
on March 21, 2006,
at 6:00 p.m. or im-
mediately following
the Work Session.
during the Regular
City Council meeting
to be held In the City
Council Chambers on
Town Hall,1400 Main
Street, Southlake,
Texas.Purpose of the
public hearing is to
consider the second
reading of the fol-
IowiORINANC :NO. 893
AN ORDINANCE OF ru �^ `
THE CITY OF ii
SOUTHLAKE ES- ,...... CHRISTY L.HOLLAND
TABLISHING AN
ADDITIONAL PEN- q*: '1, 'el MY COMMISSION EXPIRES
ALTY ON AD VALO- s• �� ?
REM PERSONAL J s°;;.,,.•' July 31,2008
PROPERTY TAXES .4
WHICH REMAIN '
DELINQUENT FOR
THE STATE OF TEXAS MORE THAN 60
FEB-
County of Tarrant DAYS
AFTER Y
YEAR AND ESTAB-
LISHING SUCH
PENALTY AND DATE
Before me, a Notary Public in OF IMPOSITION ON'and State,this day personally appeared Lisa Wesselman, Bid and Legal Coordinator
OTHER DELIN-
for the Star-Telegram, publish QUENT AD VALO-'am, Inc.at Fort Worth, in Tarrant County,Texas;and who,after being duly sworn, did
REM TAXES' PRO-
depose and say that the attc VIDING A REPEAL- advertisem t was published in the above named paper on the listed dates: BIDS&
LEGAL DEPT. STAR TLEGRAM PROVIDING LAUFOO
817 390-7320 PUBLICATION IN l
( THE OFFICIAL
NEWSPAPER; AND
FECTIVENDATE EF-
City of Southlake ed
Lori Farwell
City Secretary
SUBSCRIBED AND SWORN TO BEFORE ME,THIS Monday, March . . %
Notary Public
Thank You For Your Payment
Remit To: Star-Telegram Customer ID: CIT57
P.O. BOX 901051 Customer Name: CITY OF SOUTHLAKE
FORT WORTH, TX 76101-2051 Invoice Number: 267036371
Invoice Amount: $44.55
PO Number: NO PO
Amount Enclosed: ,$