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Consent 1.
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| Brentwood City Commission Agenda |
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| Information |
| Subject |
| Resolution 2023-49 - A Resolution to Approve an Interlocal Agreement with Williamson County for Property Tax Billing and Collection |
| Background |
In the spring of 2013, the City of Brentwood staff participated in meetings with representatives with the Williamson County Trustee’s office and the City of Franklin to explore the possibility of the County assuming responsibility for property tax billing and collection for the City of Brentwood and City of Franklin. The County had been performing this service for Nolensville and Thompson Station.
Prior to 2013, the City of Brentwood received property assessment data from the County Assessor’s office which was then converted and uploaded into the City's property tax software. The City contracted with a printing services firm to print and mail the bills to each property owner. The County and Franklin did the same thing and even used the same printing services company as Brentwood. Each property owner in Brentwood received a separate city tax bill and a county tax bill. Most taxes are paid via escrow from various mortgage companies, but residents also have the option to pay via mail, online or in person. Thus, a resident previously had to make two payments – one to the City and one to the County.
To make the process easier for the local governments and their residents, the City and County entered into an Interlocal Agreement for the County to bill and collect the City's property taxes. On May 29, 2018, an amendment to extend the term of the agreement another five years was approved by the City Commission. That amendment extended the term to June 30, 2023.
The County has proposed to extend the business relationship again. If approved, the County would continue to process and send one bill for each property showing the County tax amount due and the City tax amount due separately. The County would continue to account for the funds for each taxing entity and then remit the funds back to the City monthly. In addition to property tax billing and collection, the County would also continue to assume responsibility for delinquent property tax collection, administration of the property tax relief program, bankruptcy postings to tax records, property name changes during the tax year, processing of tax files to mortgage companies and the posting of Brentwood tax billing/collection information to the County website.
There have been several benefits to this arrangement:
- One annual tax statement for citizens
- Increased convenience for the taxpayer having to only make one payment
- Elimination of duplicate processes performed by the City, Williamson County, and the printing services provider
- Single point of contact for citizens
- Expanded payment options (payment may be made at local bank branches)
- Administration of tax relief program at single point
- Streamlined delinquency and bankruptcy actions
- Property Tax software cost savings
- Reduced web maintenance requirements
- Printing and postage cost savings
- Reallocation of staff resources in lieu of additional staffing
Because the renewal proposal includes a change to the fee (from $4.00 to $5.00 per parcel per tax year), the County has proposed a new interlocal agreement rather than using one of the optional extensions. This will be the first rate increase since the initial arrangement was approved on May 28, 2013. At approximately 18,781 parcels, the annual fee for Brentwood would be $93,905. Please note that state law allows the County to charge up to 2% for tax collection services, which for Brentwood would be over $250,000 annually.
The proposed interlocal agreement has an initial term from July 1, 2023 through June 30, 2028. There are three optional five-year extensions.
Please contact the Finance Director or City Manager with any questions. |
| Staff Recommendation |
| Staff recommends approval of the Interlocal agreement with Williamson County for the billing and collection of Brentwood property taxes. |
| Previous Commission Action |
| City Commission previously approved Resolution 2013-36 - A Resolution to Approve an Inter-Local Agreement with Williamson County for Property Tax Billing and Collection, on May 28, 2013. On May 29, 2018, the City Commission approved Resolution 2018-44, a Resolution to Approve an Amendment to the Interlocal Agreement with Williamson County for Property Tax Billing and Collection which was for one five year extension.
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| Fiscal Impact |
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| Fiscal Impact: |
| The trustee fee for collecting the City's property taxes is estimated at $93,905 for FY 2024. |
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