Attorney Tax

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<ul><li> 1. PROPERTY TAXESDelinquent Tax CollectionAnalysis (July 2005 Report) Issues raised May 9, 2006 May 2006Committee Members Auditors Office Planning and Budget Office Purchasing OfficeResources Tax Assessor/Collectors Office County Attorneys Office 5/16/2006 2:23 PMPage 1 </li></ul> <p> 2. Delinquent Property Taxes Impact if outsourced The data indicates that Travis Countys estimated net losses would have been the following amounts in FY04 had the County outsourced delinquent tax collections:Perdue Brandon (average collection rate $ 6,029,252 excluding Burleson ISD)Linebarger Goggins (average collection rate $ 7,116,639 excluding Harris and Hidalgo counties)Linebarger Goggins (using best county $ 5,347,405 collection rate - Tarrant County)Linebarger Goggins (Hybrid Proposal in original $ 7,858,828 proposal)Linebarger Goggins (Hybrid Proposal made on $ 7,790,195 May 9, 2006)Page 2 3. Delinquent Property Taxes The Net Revenue Analysis for Travis County was broken intotwo components:1. Delinquent Property Tax Revenue 2. Delinquent Tax Collection Process REVENUES (Attorney fees, Parcel Rate fees, Court Costs) MINUS EXPENDITURES (Salaries and operating costs for CountyAttorney &amp; Tax Offices, Litigation Costs for other County Offices)EQUALS NET PROFIT/(LOSS)Page 3 4. Collection Rate Summary Travis Particulars Perdue Linebarger County Average annual collection rate of 5 largest 97.85%97.70%98.77% entities for Tax Year 2003 Average annual collection rate of 5 largest 97.60%97.58%98.65% entities for Tax Yrs 00-03 Average collection rate of 5 largest entities 99.33%99.31%99.70% for Tax Yr 2000 after 4 yrs Average collection rate of 5 largest entitiesn/a99.47%99.75% for Tax Yr 2000 after 5 yrs Average delinquent collection rate of 6n/a79.66%91.10% largest entities for Feb 1 to Jun 30 for Tax Yrs 99-03 Average delinquent collection rate of 6n/a66.61%68.36% largest entities for July 1, 2000 to Sept 30, 2004 for Tax Yrs 99-03 Page 4 5. Public Policy AssumptionsTaxes are levied and assessed by law and it is the legal responsibility of all property owners to comply with those laws.As a matter of public policy, compliance with the law is strictly enforced by aggressively pursuing all delinquent taxpayers.All of the jurisdictions for which Travis County collects taxes are treated in a fair and equitable manner. Page 5 6. Why and When Does Travis County File a Lawsuit?The Tax Collector-Assessor performs manycollection efforts starting on February 1 whenproperty taxes become delinquent. First, the Tax Office sends out a Section 33.04delinquent notice that demands payment byFebruary 28. Second, if there is no response to the Section33.04 letter, a demand letter is sent giving thetaxpayer ten days to respond.Page 6 7. Why and When Does Travis County File a Lawsuit? (contd)Third, if there is no response to the demand letter, a litigation letter is sent demanding payment immediately and stating that Travis County is in the process of filing a lawsuit against them.In short, taxpayers can avoid legal action by responding to the Tax Offices collection letters and setting up alternative methods of payment if necessary. The Tax Office will only pursue litigation on taxpayers that are unresponsive to their collection efforts.Page 7 8. Lawsuits are initiated based on the following criteria The taxpayer owes a large amount of tax (thelarger the balance the higher the priority). The taxpayer already has a balance from aprevious tax year. The taxpayer has a poor payment history, haswritten a check on insufficient funds, or hasbroken a payment plan. The taxpayer owes tax to a jurisdiction that hasa low collection rate. Page 8 9. Delinquent Property Taxes Tax Year 2003 Delinquent Homestead Parcels Sued in FY04 by Precinct Delinquent Lawsuits Filed on% of Tax Year 2003 Homestead ParcelsTax Year 2003DelinquentPrecincton 7/1/04 for Tax Delinquent Homestead Homestead ParcelsYear 2003 (FY04) Parcels in FY04 Sued in FY04Pct 1 1,444 1419.76%Pct 2 862 12013.92%Pct 3 749 11415.22%Pct 4 1,275 15312.00%Total4,330 52812.19% Page 9 10. Homestead Parcels by Precinct for Tax Year 2003 (FY04)Total # of homestead parcels = 149,95140% 31.14% 29.67% % of total homestead parcels30%21.13%20% 18.06%10%31,686 46,690 44,48527,090 0%Pct 1Pct 2Pct 3 Pct 4Travis County PrecinctsPage 10 11. Homestead Parcels Delinquent on 7/1/04 - Tax Yr 2003 (FY04) Delinquent parcels to Total # of delinquent parcels =4,330total parcels by precinct Total # of homestead parcels = 149,9516% % within each precinct that are delinquent 4.56%4.71% 4%1.85% 1.68%2%1,444862 749 1,275 31,686 46,69044,48527,0900% Pct 1Pct 2 Pct 3 Pct 4Travis County Precincts Page 11 12. Homestead Parcels Delinquent on 7/1/04 - Tax Yr 2003 (FY04) Delinquent parcels byTotal # of delinquent parcels =4,330 precinct to total delinquent Total # of homestead parcels = 149,951 40%% delinquent w/i each precinct to total delinquent 33.35% 29.45% 30% 19.91% 20%17.30% 10%1,444 862 749 1,2754,330 4,330 4,330 4,3300% Pct 1 Pct 2 Pct 3 Pct 4 Travis County Precincts Page 12 13. Precinct 1 Taxpayers charged Attorney Fees in FY04 (TY03)Law Firm (incl. 15% atty fee) - 579 taxpayers charged Travis County (incl. 15% atty fee &amp; court costs) - 141 taxpayers charged400 345 Delinquent as of July 1300 # of taxpayers200 122100 4856 56 3141 210$0 - $87,639 - $116,065 -$142,871$87,638$116,064 $142,870and up Home Values Page 13 14. Precinct 2 Taxpayers charged Attorney Fees in FY04 (TY03)Law Firm (incl. 15% atty fee) - 362 taxpayers charged Travis County (incl. 15% atty fee &amp; court costs) - 120 taxpayers charged 250Delinquent as of July 1 200 184# of taxpayers 150100 6672 41 405027 25 270 $0 - $130,337 - $182,125 -$270,160 $130,336$182,124 $270,159and upHome ValuesPage 14 15. Precinct 3 Taxpayers charged Attorney Fees in FY04 (TY03)Law Firm (incl. 15% atty fee) - 313 taxpayers charged Travis County (incl. 15% atty fee &amp; court costs) - 114 taxpayers charged 250Delinquent as of July 1 200 180# of taxpayers 150100 374046 475028 22 270 $0 - $141,821 - $199,780 -$291,074 $141,280$199,779 $291,073and upHome ValuesPage 15 16. Precinct 4 Taxpayers charged Attorney Fees in FY04 (TY03)Law Firm (incl. 15% atty fee) - 513 taxpayers charged Travis County (incl. 15% atty fee &amp; court costs) - 153 taxpayers charged288Delinquent as of July 1 300# of taxpayers 200113 100 61 51 48 42 33 30 0 $0 - $79,752 - $105,484 - $137,243 $79,751$105,483 $137,242 and upHome ValuesPage 16 17. Taxpayers charged Attorney Fees in FY04 (TY03)Law Firm (incl. 15% atty fee) 1,767 taxpayers charged Travis County (incl. 15% atty fee &amp; court costs) - 528 taxpayers charged 750 Delinquent as of July 1579600513 # of taxpayers450 362313300141153120 114150 0 Pct 1Pct 2 Pct 3 Pct 4Travis County PrecinctsPage 17 18. Delinquent Property Taxes Tax Year 2003 Delinquent Homestead Parcels Sued in FY04 by Homestead Value Quartile All Precincts Delinquent Lawsuits Filed on% of Tax Year 2003 Homestead Homestead ParcelsTax Year 2003Delinquent Valueon 7/1/04 for Tax Delinquent Homestead Homestead ParcelsQuartilesYear 2003 (FY04) Parcels in FY04 Sued in FY04 1 (lowest) 2,097 1748.30% 2959 12813.35% 3702 10114.39% 4 (highest)572 12521.85%Total4,330 52812.19%Page 18 19. Delinquent Property Taxes Tax Year 2003 Delinquent Homestead Parcels Sued inFY04 by Homestead Value Quartile Precinct 1 Delinquent Lawsuits Filed on% of Tax Year 2003 Homestead Homestead ParcelsTax Year 2003Delinquent Valueon 7/1/04 for Tax Delinquent Homestead Homestead ParcelsQuartilesYear 2003 (FY04) Parcels in FY04 Sued in FY04 1 (lowest) 72348 6.64% 231431 9.87% 32012110.45% 4 (highest)2064119.90%Total1,444 1419.76%Page 19 20. Delinquent Property Taxes Tax Year 2003 Delinquent Homestead Parcels Sued inFY04 by Homestead Value Quartile Precinct 2 Delinquent Lawsuits Filed on% of Tax Year 2003 Homestead Homestead ParcelsTax Year 2003Delinquent Valueon 7/1/04 for Tax Delinquent Homestead Homestead ParcelsQuartilesYear 2003 (FY04) Parcels in FY04 Sued in FY04 1 (lowest) 41841 9.81% 21872714.44% 31472517.01% 4 (highest)1102724.55%Total862 12013.92%Page 20 21. Delinquent Property Taxes Tax Year 2003 Delinquent Homestead Parcels Sued inFY04 by Homestead Value Quartile Precinct 3 Delinquent Lawsuits Filed on% of Tax Year 2003 Homestead Homestead ParcelsTax Year 2003Delinquent Valueon 7/1/04 for Tax Delinquent Homestead Homestead ParcelsQuartilesYear 2003 (FY04) Parcels in FY04 Sued in FY04 1 (lowest) 3593710.31% 21442819.44% 31362216.18% 4 (highest)1102724.55%Total749 11415.22%Page 21 22. Delinquent Property Taxes Tax Year 2003 Delinquent Homestead Parcels Sued inFY04 by Homestead Value Quartile Precinct 4 Delinquent Lawsuits Filed on% of Tax Year 2003 Homestead Homestead ParcelsTax Year 2003Delinquent Valueon 7/1/04 for Tax Delinquent Homestead Homestead ParcelsQuartilesYear 2003 (FY04) Parcels in FY04 Sued in FY04 1 (lowest) 59748 8.04% 23144213.38% 32183315.14% 4 (highest)1463020.55%Total1,275 15312.00%Page 22 23. Delinquent Property TaxesPRECINCTS 1 &amp; 4 STATISTICS39.2% of all homestead parcels are in Pcts 1 &amp; 462.8% of all delinquent homestead parcels are in Pcts 1 &amp; 455.7% of all lawsuits are in Pcts 1 &amp; 410.8% of delinquent homestead parcels in Pcts 1 &amp; 4 were sued14.5% of delinquent homestead parcels in Pcts 2 &amp; 3 were sued Page 23 24. Homesteads per Linebarger were sold between 2003 &amp; Aug 2, 2005Central East Austin Homesteads Sold (2003 - Aug, 2005) Tax Sale# of TaxAddress Date Years Due 82 Anthony St 6/7/2005 7 6907 Bennett Av 5/4/2004 5 No contact since Feb 2003 1175 Springdale Rd2/1/2005 7 2901 East 3rd St5/6/2003 9 Residents had moved out 2312 East 9th St3/4/2005 10 3206 Goodwin Av12/3/2002 5Other Homesteads Sold (2003 - Aud, 2005)Tax Sale # of Tax AddressDateYears Due 1302 Remmington Rd12/7/20044 2304 Whitebead Tr5/6/20036 3246 Brass Buttons Tr8/2/20058 Property Owner Deceased 6111 Melody Ln 2/1/20055 Vacant Property per visit 11013 Maha Loop Rd 7/5/20052Property was taken off sale role prior to Sale Property Redeemed by Owner 14103 Lazyridge Dr 3106 Fallwell Ln 1801 Westward Ho Tr3113 River RdPage 24 25. END OF PRESENTATION Page 25 </p>

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