TO: Board of Supervisors
FROM: Robert G. Minahen, Treasurer-Tax Collector
REPORT BY: Robert G. Minahen, Treasurer-Tax Collector
SUBJECT: Introduction and intention to adopt an Ordinance approving a new Tax Collector fee for enhanced collection of certain delinquent unsecured property taxes (Fiscal Impact: Increased revenues to offset collection costs; Discretionary)
RECOMMENDATION
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PUBLIC HEARING - Introduction of Ordinance
Introduction and intention to adopt an Ordinance approving an update to Part 180 of the Napa County Policy Manual adding a 25% enhanced collection fee for certain delinquent unsecured property taxes. (Fiscal Impact: Increased revenues to offset collection costs, Discretionary)
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BACKGROUND
California Government Code and Revenue and Taxation Code provide county tax collectors with a variety of collection tools to use in collecting unsecured property taxes that are currently employed by the Tax Collector staff. There are additional enhanced collection programs that are allowable under State law that the Tax Collector's Office does not frequently use such as bank levies, property seizures and sales, and the use of outside collection agencies.
Pursuant to a 2019 Memorandum of Understanding with the California State Association of Counties-Finance Corporation, the Tax Collector previously utilized the Tax Refund Exchange and Compliance System (CalTRECS) to pursue unsecured property taxes. However, unsecured property tax collection services are no longer available through CalTRECS, leaving Napa and other counties to look elsewhere for outside collection assistance.
The Tax Collector researched options for outside enhanced collection assistance and determined that American Financial Credit Services, Inc. (AFCS) was the only available company that specializes in cost-neutral debt collection for local agencies. AFCS provides the same services elsewhere in California for a 25% fee on the base tax. The collection fee will not be charged ...
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