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HomeMy WebLinkAboutPR 20271: SECTION 8 DELINQUENT TAX SUITS P. R. No. 20271 05/14/18 ht RESOLUTION NO. A RESOLUTION AUTHORIZING AMENDMENT TO SECTION 8 — DELINQUENT TAX SUITS TO THE CONTRACT BETWEEN THE CITY OF PORT ARTHUR AND JEFFERSON COUNTY, TEXAS, FOR COLLECTION AND ASSESSMENT SERVICES WHEREAS, the City of Port Arthur and Jefferson County, Texas, entered into a Contract for Collection and Assessment Services on the 9tf, day of October 1989; and WHEREAS, the parties wish to amend Section 8 as it relates to delinquent tax suits, as follows: SECTION 8 DELINQUENT TAX SUITS 8.1 This contract is being executed pursuant to Section 791.011 of the Texas Government code which allows an interlocal agreement to be established between local government entities to provide a governmental function or service that each party to the contract is authorized to perform individually. RECITALS: The parties agree as follows: Each party to this agreement is authorized to collect delinquent taxes. Each party agrees that is entitled to receive proceeds from a sheriff or constable sale. Thus, each party to this contract agrees that JEFFERSON COUNTY, a party to a judgment, taken for the collection of delinquent taxes is authorized to conduct a sheriff sale of property, a re-sale of property not sold at the initial Sheriff's Sale, or to receive bids for the sale of property not sold at either the Sheriff's sale or a re-sale. In instances where a property has been bid-in to Jefferson County in trust for the entities for whom it collects, and has been through one (1) or more re-sales, and the period after the date on which the owner's right of redemption has terminated, then, each taxing unit authorizes JEFFERSON COUNTY to act on its behalf to sell such property at a private sale to any bidder at what it considers a reasonable price. Accordingly, JEFFERSON COUNTY shall not be required to seek approval from a taxing unit's governing body to accept and transfer said property to a purchaser at a non-public sale. Payments to each taxing unit will be allocated as provided under the Texas Property Tax Code. At JEFFERSON COUNTY'S discretion, each party further agrees that where necessary JEFFERSON COUNTY shall be permitted to sell the property at a private sale for an amount less than the lesser of 1) The market value specified in the judgment of foreclosure; or 2) The total amount of the judgment against the property. Each party understands and agrees that a property that is sold for an amount equal to or lesser than the judgment, its market or appraised value discharges and extinguishes all liens foreclosed by the judgment. EACH PARTY AGREES THAT ANY ENTITY THAT DOES NOT CONSENT TO A SALE FOR AN AMOUNT EQUAL TO OR LESSER THAN THE JUDGMENT AND/OR ITS MARKET OR APPRAISED VALUE WILL BE LIABLE TO JEFFERSON COUNTY FOR A PRO RATA SHARE OF THE COSTS INCURRED IN PURCHASING AND MAINTAINING PROPERTY, INCLUDING THE COSTS OF PREVENTING THE PROPERTY FROM BECOMING A PUBLIC NUISANCE, A DANGER TO THE PUBLIC OR A THREAT TO PUBLIC HEALTH. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF PORT ARTHUR: Section 1. That the facts and opinions in the preamble are true and correct. Section 2. That the City Council hereby approves the Amendment to Contract for Collection and Assessment of Services, in substantially the same form as attached hereto as Exhibit "A". Section 3. This Resolution shall become effective upon final passage. Section 4. That a copy of the caption of this Resolution be spread upon the Minutes of the City Council. READ, ADOPTED AND APPROVED on this day of A.D., 2018, at a Meeting of the City Council of the City of Port Arthur, by the following vote: AYES: Mayor: Councilmembers: NOES: . Derrick Ford Freeman, Mayor ATTEST: Sherri Bellard City Secretary APPROVED AS TO FORM: 7V/T7 Val Tizeno City Attorney APPROVED FOR ADMINISTRATION: Harvey Robinson Interim City Manager EXHIBIT "A" RESOLUTION & ORDER THE STATE OF TEXAS § COUNTY OF JEFFERSON § WHEREAS, the City of Port Arthur (Hereinafter called "Council") has an inter-local agreement with JEFFERSON COUNTY, TEXAS (Hereinafter called "THE COUNTY") to collect its current and delinquent taxes. The parties wish to defray the costs of collection, as authorized by TEX. TAX CODE § 33.11, that they incur under a contract for the collection of delinquent property taxes between "THE COUNTY" and a private law firm entered into pursuant to TEX. TAX CODE § 6.30; and WHEREAS, under said Section 33.11, the Council as the governing body of the City of Port Arthur is empowered to authorize the early collection of business personal property taxes pursuant to Section 33.11 of the Tex. Tax Code. WHEREAS, the Council authorizes an additional penalty on delinquent personal property taxes for tax years 2017 and subsequent years as provided by Section 33.11, Texas Tax Code, in the amount of 20% of the delinquent tax, penalty and interest if the tax becomes delinquent on or after February 1 of a year and remains delinquent on the 60`h day thereafter. NOW, THEREFORE, BE IT RESOLVED AND ORDERED BY the City of Port Arthur THAT: SECTION I: The Order, approving the amendment of the contract with a private law firm entered on May 19, 2014 to authorize the collection of delinquent taxes, is amended to authorize the early collection of business personal property taxes pursuant to Section 33.11 of the Tex. Tax Code is hereby confirmed. SECTION II: An additional penalty on delinquent personal property taxes for tax years 2017 and subsequent years is hereby authorized and imposed, as provided by Section 33.11, Texas Tax Code, in the amount of 20% of the delinquent tax, penalty and interest if the tax becomes delinquent on or after February 1 of a year and remains delinquent on the 60`h day thereafter. SECTION III: This Resolution shall become effective upon final passage. PASSED, APPROVED, ADOPTED and SIGNED this day of , 2018. City of Port Arthur Jefferson County Derrick Freeman, Mayor Jeff Branick, County Judge Raymond Scott, Jr., District 1 Commissioner Eddie Arnold, Precinct No. 1 Cal J. Jones, District 2 Commissioner Brent A. Weaver, Precinct No. 2 Thomas J. Kinlaw III, District 3 Commissioner Michael S. Sinegal, Precinct No. 3 Harold Doucet, Sr., District 4 Commissioner Everette D. Alfred, Precinct No. 4 Charlotte Moses, Position 7 Commissioners' Court Kaprina Richardson Frank, Position 8 Date Approved: , 2018 THE STATE OF TEXAS COUNTY OF JEFFERSON AMENDMENT TO CONTRACT FOR COLLECTION AND ASSESSMENT SERVICES Whereas Jefferson County, Texas hereinafter called "County" and the City of Port Arthur herein called "City", entered into a Contract for Collection and Assessment Services on the 9th day of October, 1989, and the parties desire to amend that agreement; now therefore Section 8 of the contract is hereby amended as follows: SECTION 8 DELINQUENT TAX SUITS 8.1 This contract is being executed pursuant to Section 791.011 of the Texas Government code which allows an interlocal agreement to be established between local government entities to provide a governmental function or service that each party to the contract is authorized to perform individually. RECITALS: The parties agree as follows: Each party to this agreement is authorized to collect delinquent taxes. Each party agrees that is entitled to receive proceeds from a sheriff or constable sale. Thus, each party to this contract agrees that JEFFERSON COUNTY, a party to a judgment, taken for the collection of delinquent taxes is authorized to conduct a sheriff sale of property, a re-sale of property not sold at the initial Sheriff's Sale, or to receive bids for the sale of property not sold at either the Sheriff's sale or a re-sale. In instances where a property has been bid-in to Jefferson County in trust for the entities for whom it collects,and has been through one(1) or more re-sales, and the period after the date on which the owner's right of redemption has terminated,then, each taxing unit authorizes JEFFERSON COUNTY to act on its behalf to sell such property at a private sale to any bidder at what it considers a reasonable price. Accordingly, JEFFERSON COUNTY shall not be required to seek approval from a taxing unit's governing body to accept and transfer said property to a purchaser at a non-public sale. Payments to each taxing unit will be allocated as provided under the Texas Property Tax Code. At JEFFERSON COUNTY'S discretion, each party further agrees that where necessary JEFFERSON COUNTY shall be permitted to sell the property at a private sale for an amount less than the lesser of 1) The market value specified in the judgment of foreclosure;or 2) The total amount of the judgment against the property. Each party understands and agrees that a property that is sold for an amount equal to or lesser than the judgment, its market or appraised value discharges and extinguishes all liens foreclosed by the judgment. EACH PARTY AGREES THAT ANY ENTITY THAT DOES NOT CONSENT TO A SALE FOR AN AMOUNT EQUAL TO OR LESSER THAN THE JUDGMENT AND/OR ITS MARKET OR APPRAISED VALUE WILL BE LIABLE TO JEFFERSON COUNTY FOR A PRO RATA SHARE OF THE COSTS INCURRED IN PURCHASING AND MAINTAINING PROPERTY, INCLUDING THE COSTS OF PREVENTING THE PROPERTY FROM BECOMING A PUBLIC NUISANCE, A DANGER TO THE PUBLIC OR A THREAT TO PUBLIC HEALTH. The amended provisions supersede all prior oral and written agreements between the parties regarding Delinquent Tax Suits as provided in Section 8 of the Original agreement. All other terms and provisions of the original Contract for Assessment and Collection Services shall remain in full force. This agreement is executed at Beaumont, Texas on the day of , 2018, by the City of Port Arthur and by the Commissioners' Court for the County. City of Port Arthur Jefferson County Derrick Freeman,Mayor Jeff Branick, County Judge Raymond Scott,Jr.,District 1 Commissioner Eddie Arnold,Precinct No. 1 Cal J.Jones, District 2 Commissioner Brent A. Weaver,Precinct No.2 Thomas J.Kinlaw III,District 3 Commissioner Michael S. Sinegal,Precinct No. 3 Harold Doucet, Sr.,District 4 Commissioner Everette D.Alfred,Precinct No.4 Charlotte Moses,Position 7 Commissioners' Court Kaprina Richardson Frank,Position 8 Date Approved: ,2018