SUBJECT
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Motion to approve a Resolution authorizing the City Tax Assessor-Collector, after consultation with the City Attorney's Office, to waive penalties and interest associated with delinquent ad valorem taxes on real property acquired by the City of Laredo through tax foreclosure, forced sale, or other lawful acquisition when the property qualifies for a constitutional or statutory governmental-property tax exemption.
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PREVIOUS COUNCIL ACTION
Not Applicable.
BACKGROUND
The City of Laredo may acquire real property through tax foreclosure, forced sale, or other lawful acquisition with delinquent ad valorem taxes, penalties, and interest remaining on the City's tax records
Property owned by a political subdivision and used for a public purpose may qualify for a governmental-property tax exemption pursuant to Article XI, Section 9 of the Texas Constitution and Texas Tax Code § 11.11. Texas Attorney General Opinion GA-0973 provides that when a political subdivision acquires property that qualifies for such an exemption, the exemption generally precludes charging the political subdivision penalties and interest on outstanding ad valorem taxes.
The proposed Resolution establishes a case-by-case process authorizing the City Tax Assessor-Collector, after consultation with the City Attorney's Office, to waive applicable penalties and interest when the real property qualifies for the governmental-property tax exemption and the penalties and interest are determined to be legally unenforceable against the City.
The authorization is limited to qualifying penalties and interest and does not constitute a blanket waiver or compromise of the underlying delinquent ad valorem tax liability or amounts legally owed to another taxing unit.
VIVA LAREDO PLAN ALIGNMENT
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COMMITTEE RECOMMENDATION
Not Applicable.
STAFF RECOMMENDATION
recommendation
Approval of Resolution.
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Fiscal Impact
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Change Order: Exceeds 25% Y/N: Click or tap here to enter text.
FINANCIAL IMPACT:
The financial impact will vary on a case-by-case basis depending on the amount of penalties and interest determined to be legally unenforceable against the City.