SUBJECT
title
Consideration to approve an amendment to the contract of the delinquent tax attorney, Flores, Flores, & Canales, PLLC, by removing Section X, which requires the delinquent tax attorney to mail a 30 day notice (15 day notice for personal property) prior to filing a lawsuit, and the Attorney requests to relinquish this notice and file lawsuits as soon as delinquent accounts are turned over for collection in an effort to generate more revenue for the City. There is no financial impact at this time.
body
PREVIOUS COUNCIL ACTION
The “Contract for the Collection of Delinquent Property Taxes and Other Charges” between the City of Laredo and Flores, Flores, & Canales, PLLC was approved by the City Council on April 19, 2021.
BACKGROUND
Section X of the delinquent tax attorney contract requires the attorney to mail a 30 day notice (15 day notice for personal property) prior to filing a lawsuit when delinquent accounts are turned over for collection. The attorney requests to relinquish this notice, since by doing so they will generate more revenue for the City, because lawsuits will be filed as soon as delinquent accounts are turned over for collection on July 1 (April 1 for personal property). The City’s Tax Assessor-Collector sends the required notices each year as per Sections 33.07 and 33.11 of the Texas Property Tax Code; therefore, satisfying the code mandate to inform delinquent taxpayers that their accounts will be turn over to the delinquent tax attorney for collection.
The delinquent tax attorney indicates the following:
“This practice has left us 30 days behind the others in filing our own lawsuits or forced to intervene in other lawsuits. We are then at a disadvantage, unable to control the lawsuit, such as service, procedure, court settings, etc. Generally, whoever files first, controls the case and usually gets paid first.”
COMMITTEE RECOMMENDATION
Not Applicable.
STAFF RECOMMENDATION
recommendation
Approve amendment.
end
Fiscal Impact
Fiscal Year: Click or tap here to enter text.
Budgeted Y/N?: Click or tap here to enter text.
Source of Funds: Click or tap here to enter text.
Account #: Click or tap here to enter text.
Change Order: Exceeds 25% Y/N: Click or tap here to enter text.
FINANCIAL IMPACT:
There is no financial impact at this time.