County Tax Assessor-Collectors

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Augustus Gregory
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1 Slide 1 The office of County Tax Assessor-Collectors Phase II: Objectives: , Slide 2 Objectives History of the Office of County Tax Assessor-Collector Constitutional Authority of the County Tax Assessor-Collector Other Current Legal Authority of the County Tax Assessor-Collector

2 Slide 3 History History of the Office Constitutional Amended in 1932 and 1954 Combined two offices History The Constitution of the State of Texas in 1876 provided for the biennial election of an Assessor in every county and that of a Collector in those counties with 10,000 or more population. The Sheriff was to serve as Ex Officio Collector in the smaller counties. The Constitution of the State of Texas of 1876 was amended by a vote of the people on November 8, 1932 to once again combine the two offices. Since 1935 when the constitutional amendment of 1932 went into effect, the Assessor-Collector has been elected biennially in all counties of 10,000 or more population. The State Constitution mandates the office of County Tax Assessor-Collector in counties with a population of 10,000 or more. The Sheriff may serve as the Tax Assessor-Collector in counties with a population of less than. In 1954, Section 16 was amended to increase the term of office for the County Tax Assessor-Collector from two to four years. Slide 4 History Creation of the Central Appraisal District The Peveto Bill, 1979 Appraisal function removed from County Tax Assessor-Collector

3 History In 1979, the Texas Legislature re-codified the Property Tax Code and passed SB-621, commonly known as the Bill. Named after Representative Wayne Peveto, D-Orange, Texas, who pushed for a Central Appraisal District that would provide a single value to all taxing jurisdictions. The Senate sponsor was Senator Grant Jones, D-Abilene, who authored SB-621. This legislation created a central appraisal district in every county, governed by a board of directors who was responsible for hiring a chief appraiser, approving the district budget, and appointing an appraisal review board. The passage of this legislation changed the meaning of the term assessment for the County Tax Assessor-Collector. Previously, assessment included the appraisal of the property. Under current law, assessment stands for the calculation of the effective tax rates, and the application of adopted rates to the values provided by the Central Appraisal District. Slide 5 Assuming Office Bonds Payable to the County and State Post before taking office Not to exceed $100,000 Assuming Office Prior to taking office, a tax assessor-collector must post a bond. The bond for the county taxes, payable to and approved by the Commissioners Court, shall be in an amount equal to 10% of the total amount of the preceding tax year s county taxes, not to exceed $100,000 unless population exceeds 1.5 million. The bond for state taxes, payable to the and in office, approved by the Commissioners Court and the State Comptroller of Public Accounts, shall equal 5% of the net state collections from motor vehicle sales and use taxes and motor vehicle registration fees in the county during the year ending August 31 preceding the date the bond is given. The bond may not be less than $2,500 or greater than $100,000. However, a county with a population of 1.5 million or more by order may set the maximum amount of the bond in an amount greater than $100,000.

4 Slide 6 Assuming Office Failure to Produce New Bonds Premiums to be paid by County Official Oath Deposits and Reports (bank accounts) Assuming Office New county or state bonds may be required at any time, with approval of the proper authorities. Failure to give new bonds within a reasonable time shall result in the suspension of and removal proceedings of the county tax assessor-collector. Reasonable premiums for both state and county bonds shall be paid by the county, out of county general revenue funds. The county tax assessor-collector s official oath and bonds for state and county taxes shall be recorded in the office of county clerk. The county judge shall submit the bond for state taxes to the State Comptroller of Public Accounts. The county tax assessor-collector is required to make bank deposits and reports according to the terms of several statutes. Under the laws regulating the county depository, the county tax assessor-collector is required to deposit all taxes collected for the state, county, or other special districts for which taxes are collected. The money is deposited in the depository pending the preparation of his/her reports. It is in the best interests of the tax collector to take the money to the bank as soon as possible so the bank s security will cover such funds. Under present law, the tax assessor-collector deposits money in his/her accounts at the depository, not the treasurers account, as soon as collected pending the preparation and reconciliation of his/her reports. (Op. AG H-1181)

5 Slide 7 Liability of the County Tax Assessor- Collector Primary Responsibility of the County Tax Assessor-Collector Collection of Delinquent Taxes May act as Chief Appraiser for the Central Appraisal District Registration and Certification Requirements A county tax assessor-collector is personally for the loss of public funds in the custody of the assessor-collector, or the county tax assessor-collector s office. For this reason, the bonds for tax office deputies should be to the tax assessor-collector instead of the county. If a district court enters a declaratory judgment that the loss is due to a reason other than the negligence or misconduct of the assessor-collector, the county tax assessor-collector can be relieved of the personal liability. The primary responsibility of the tax assessor-collector is assessing and collection of county property tax. The county tax office may collect taxes for other taxing agencies within the county, for instance: schools, cities, and special districts. If the Commissioners Court does not contract with a private attorney, the county attorney, or if there is no county attorney, the district attorney may represent the county to enforce the collection of delinquent taxes. Today, most counties contract with law firms specializing in the collection of delinquent property taxes. Although there is no requirement to do so, consulting the tax assessor-collector when making this type of decision is very useful. The tax office works closest with the delinquent attorneys, and a good working relationship can have a positive impact on collection rates. In some counties, the tax assessor-collector is hired to serve as the Chief Appraiser for the Central Appraisal District. This is a separate function, and requires the tax assessor-collector to administer two separate budgets and staffs. Both the duties of the tax assessor-collector and those of the Chief Appraiser require registration and certification with the Texas Department of Licensing and Regulation as a Property Tax Professional. To be eligible to register as a Property Tax Professional, one must be at least 18 years old, a resident of Texas, of good moral character, a graduate of an accredited high school or have a high school GED and must actively engage in the appraisal, assessment, or collection of ad valorem taxes. The tax assessor-collector s certification is as a Registered Property Tax Assessor-Collector. This certification requires a minimum of 3 years of experience, several formal tested courses and examinations. The Chief Appraiser, and any appraisal staff must register and certify as a

6 Property Tax Appraiser. This also requires 3 year of experience, successful completion of course work and examinations. Certification and required continuing education is monitored by the Texas Department of Licensing and Regulation. Tax assessor-collectors that are active in property tax collection are automatically non-voting members of the Appraisal District Board of Directors. This does not preclude them from representing the county and any other jurisdiction as a voting member of the board. In any capacity, the tax assessor-collector by virtue of the required formal training in the property tax code, can be a valuable asset to the board and the Commissioners Court. Slide 8 Current Legal Authority Texas Constitution, Article VIII, Sections 14 and 16 80% of County Revenue Funds Collected Provide Law Enforcement Judicial System Road & Bridge Maintenance Public Health Today, the office of the County Tax Assessor-Collector is provided by Article VIII, Sections 14 and 16 of the Texas Constitution. The County Tax Assessor-Collector is a necessary function of the county government. Property tax revenue usually provides up to % of a county budget s requirements. Property taxes are the single greatest source of county revenue. These funds provide for law enforcement, the judicial system, public health and human resource needs, library bookmobiles, and construction and maintenance of all county roads and bridges. Article VIII, Section 14 Assessor and Collector of Taxes Except as provided in Section 16 of this Article, there shall be elected by the qualified voters of each county, an Assessor and Collector of Taxes, who shall hold his or her office for four years and until his or her successor is elected and qualified; and such Assessor and Collector of Taxes shall perform all the duties with respect to assessing property for the purpose of taxation and of collecting taxes, as may be prescribed by the Legislature.

7 Slide 9 State Department of Highways & Public Transportation Vehicle Registrations and Licensing RTS Inventory Every tax office in the state provides registration and title services. The County Tax Assessor-Collector has served the state in this capacity since April of The Certificate of Title Act became effective October of For over 80 years the tax office had worked closely with TXDMV changing and growing with that agency and the state. Prior to 1978, all vehicles were registered in March of each year. Staggered registration of passenger and light commercial vehicles effectively spread the workload throughout the entire year. Since 1992, county tax offices have utilized TXDMV s online computer system, allowing every office access to all motor vehicle records across the state. The benefits include more accurate records and a speeding up of the title process. The Tax Assessor-Collector is responsible to the state for accountable inventory in the form of registration stickers, permits, and special annual plates. Slide 10 Voter Registration Applications Voter Certificates Voter Records Reports to the Secretary of State Poll lists Petitions

8 In most Texas counties, the Tax Assessor-Collector also acts as the voter registrar. As such they are responsible for registering the eligible population of the county which includes maintaining individual records, generating voter registration certificates, and reporting all changes and various statistics to the Secretary of State. In 2001, the Help America Vote Act (HAVA) made several changes to Federal Election Law impacting the manner in which voter information is maintained and election lists are generated. Counties process their voter registration using the TEAM (Texas Election Administration Management) System. The voter registrar must provide poll lists of all eligible voters for all elections held within the county. Local option petitions are usually presented to the voter registrar for verification. Slide 11 Collection and Distribution of Fees Fees due the County Tax Assessor- Collector Jurisdiction Special Inventory Tax There are a multitude of other fees that the county tax assessor-collector is responsible for collecting. Some of these include assessment and collection of property taxes for other agencies and taxing units. The County Tax Assessor-Collector is required to collect for other taxing under these conditions: the law requires the other taxing unit to use the county assessor-collector for taxes imposed in the county; the law creating or authorizing creation of the taxing unit does not mention who assess and collects its taxes within the county; the governing body of the taxing unit requires the county to assess and collect its taxes as provided by Property Tax Code, Section 6.22 (c) or it is required by intergovernmental contract. An appraisal district, or a taxing unit, may not be required to assess or collect taxes outside the district boundaries of the appraisal district. A reasonable fee is due the County Tax Assessor- Collector for collecting taxes for other taxing entities in the county but this fee may not exceed the actual costs incurred for assessing and collecting taxes for a taxing unit. A clarification of actual costs can be found in Attorney General Opinion JM-996. While not a money making proposition, consolidated tax collections in the County Tax Office to help cut costs and streamline government is a very appealing option. Until 1994, motor vehicle dealers paid taxes on the value of units they held as of either January 1, or September 1. All businesses are taxed on the inventory held. The 73 rd legislature provided a significant change in the way dealers pay property taxes on their inventory. The dealer reports

9 each sale and the property tax on the value of each vehicle sold to the public on a monthly report. The dealers turn the property tax over to the County Tax Assessor-Collector to escrow on their behalf by the 10 th of the following month. The tax assessor-collector is responsible for record keeping and the escrow accounts on each dealer in the county. After the December Vehicle Inventory Tax reports are filed and balanced, the tax collector is responsible for paying the property taxes for the dealership on their inventory. If not enough money has been collected, the tax collector bills the dealership for the balance. An excess of funds is split proportionately to the taxing jurisdictions. To help defray the cost of administering these funds, the interest from the escrow accounts is dedicated to the tax office. It is interesting to note that the tax assessor-collector is charged with these responsibilities whether they collect property taxes through their office or not. Tax assessor-collectors commonly refer to the procedure as VIT (vehicle inventory tax). Subsequent legislation now includes boats, heavy equipment, and manufactured housing. This resulted in the use of the term SIT (special inventory tax). Only the tax assessor-collector can expend the interest monies from the SIT (Special Inventory Accounts) accounts, even if the function has been contracted to another entity. Slide 12 Collection and Distribution of Fees Alcoholic Beverage Permits Boat and Motor Registration County/State Fees In counties that sell and serve liquor, the tax office issues beer, wine, and liquor. The county receives fees on the licenses. Under the Texas Parks and Wildlife Code, Section , the County Tax Assessor-Collector can serve as agent for the Texas Parks and Wildlife Department, registering boats and motors. The county receives 10% of all registration and title fees collected, and 5% of sales tax collected by the county office. The Texas Parks and Wildlife Department s computer system can be accessed through the Texas Department of Transportation RTS system to generate receipts and reports, simplifying and streamlining the process for those offices that provide the service.

10 Other taxes and fees collected by the tax assessor-collector include county and/or state fees imposed on coin operated vending machines, amusement machines, and sales tax on motor vehicles. Slide 13 Library of Public Records A library of public records is kept by many County Tax Assessor-Collector offices. These records are open to the public. The library may contain records of deeds, maps, plats and abstracts of property located within the county. This is valuable data regarding the size, shape, location, legal description, property owner, and purchase date of all real property situated in the county. These records are very popular in research. Slide 14 Review Summarize History Constitutional Authority Current Legal Authority Summary The Texas Constitution of 1876 provided for the biennial election of an Assessor in every county and that of a collector in those counties of 10,000 population or more. The sheriff was to serve as ex-officio collector in the smaller counties. Since 1935 when the Constitutional amendment of 1932 went into effect, the Assessor-Collector has been elected biennially in all counties of 10,000 or more population. The State Constitution mandates the office of the County Tax Assessor-Collector in counties with a population of 10,000 of more. The Sheriff may serve as

7/19/111 ALM the tax assessor-collector in counties with a population of less than 10,000.

Constitution. The County Tax Assessor-Collector is a necessary function of county government.

Property taxes are the single greatest source of county revenue.

The County Tax Office may collectt taxes for other taxing agencies within the county, for instance: schools,

The County Tax Assessor-Collector has served the state in this capacity since April of 1918.

In most Texas counties, the Tax Assessor-Co llector also acts as the voter registrar.

The county receives a fee on the licenses. Under the Texas Parks andd Wildlife Code, Section 31.

11 7/19/111 ALM the tax assessor-collector in counties with a population of less than 10,000. In 1954, the Constitution was amended to increase the term of office for the County Tax Assessor-Collector from two to four years. Today, the office of the County Tax Assessor-Collector iss provided by Article VIII, Section 14 and 16 of the Texas Constitution. The County Tax Assessor-Collector is a necessary function of county government. Property tax revenue usually provides up to 80% of a county budget ss requirements. Property taxes are the single greatest source of county revenue. The primary responsibility of the Tax Assessor-Collectorr is the assessing and collection of county property tax. The County Tax Office may collectt taxes for other taxing agencies within the county, for instance: schools, cities, and special districts. Every tax office in the state provides motor vehicle registration and title services. The County Tax Assessor-Collector has served the state in this capacity since April of The Certificate of Title Act became effective October of In most Texas counties, the Tax Assessor-Co llector also acts as the voter registrar. In counties that sell and serve alcohol, the tax office issues beer, wine, and liquor licenses. The county receives a fee on the licenses. Under the Texas Parks andd Wildlife Code, Section , the County Tax Assessor-Collector can serve as agent for thee Texas Parks and Wildlife Department registering boats and motors. Slide 15 1) Texas Constitution, Article 8, Sections 14 & 16 2) Texas Transportation Code, Section ) Texas Local Government Code, Section ) Texas Property Tax Code, Section 6, Subchapter B 5) Texas Practice, County and Special District Law, by Brooks, Vol. 35 6) Texas Parks and Wildlife Code, Section ) Texas Election Code, Section

County Tax Assessor-Collectors

Slide 1 The office of County Tax Assessor-Collectors Phase II: 2.006 Gain Attention: Use opener here that creates an analogy describing why a Tax Assessor-Collector is more than what they seem. For example,