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G-07-11-08-9C4 - 11/8/2007 ORDINANCE NO. q'C' AN ORDINANCE AMENDING CHAPTER 1, SECTION 1.702, CODE OF ORDINANCES (1995 EDITION), CITY OF ROUND ROCK, TEXAS, TO ENTITLE COLLECTION OF ADDITIONAL PENALTY TO DEFRAY COSTS OF COLLECTION OF DELINQUENT TAX ACCOUNTS; AND PROVIDING FOR A SAVINGS CLAUSE AND REPEALING CONFLICTING ORDINANCES AND RESOLUTIONS. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND ROCK, TEXAS: I. That Chapter 1, Section 1 . 702 , Code of Ordinances (1995 Edition) , City of Round Rock, Texas, is hereby amended to read as follows : 1.702 COLLECTION OF TAXES (1) All taxes due the city shall be payable to the city tax collector on receipt of the tax bill and shall be considered delinquent if not paid before February 1 of the year following the year in which imposed. Delinquent taxes shall be subject to all penalties provided for in Section 33.01 of the Tax Code. (2) The city may contract with any competent attorney to represent the city to enforce the collection of delinquent taxes in accordance with Section 6.30 of the Tax Code. (a) If the city has entered into a contract for enforcement and collection of delinquent taxes in accordance with Section 6.30 of the Tax Code, an additional penalty on delinquent taxes to defray costs of collection shall be imposed in accordance with Section 33.07 of the Tax Code. (b;► The amount of the additional penalty assessed to defray cost of collection shall not exceed the amount of compensation specified in the contract with the attorney to be paid in connection with the collection of delinquent taxes, which shall be set in accordance with Section 6.30(c) of the Tax Code, as amended. II. A. All ordinances, parts of ordinances, or resolutions in conflict herewith are expressly repealed. B. The invalidity of any section or provision of this ordinance shall not invalidate other sections or provisions thereof . 0:\wdox\ORDINANC\07I1)'5D4.WPD/ps C. The City Council hereby finds and declares that written notice of the date, hour, place and subject of the meeting at which this Ordinance was adopted was posted and that such meeting was open to the public as required by law at all times during which this Ordinance and the subject matter hereof were discussed, considered and formally acted upon, all as required by the Open Meetings Act, Chapter 551, Texas Government Code, as amended. READ and APPROVED on first reading this the 2.E;oa day of 06+0 2007 . READ, APPROVED and ADOPTED on second reading this the fil day of � � � "��. 2007 . N W L. Mayor City of Rot Rock, Texas A FST. _ fp.� CHRISTINE R. MARTINEZ, City Secre. ary 2 DATE: November 1, 2007 SUBJECT: City Council Meeting - November 8, 2007 ITEM: *9C4. Consider an ordinance adopting the amendment to Section 1.702, Code of Ordinances, for an additional penalty to defray costs of collecting of delinquent taxes. (Second Reading) Department: Finance Staff Person: Cindy Demers, Finance Director Justification: The collection rate had been 15% commission for delinquent taxes collected; the legislature has now enacted Texas Tax Code 6.30(c) which allows a 20% commission on the delinquent taxes collected. This ordinance updates the penalty of 15% to 20% for the collection of delinquent taxes and penalty (including interest owed) collected. Funding• Cost: N/A Source of funds: N/A Outside Resources: N/A Background Information: The Texas Property Tax Code sections 33.07 & 33.08 were amended by the 77th state legislature to authorize the governing body to impose a collection penalty in an amount that does not exceed the amount of compensation specified in the contract. Public Comment: N/A