BILL ANALYSIS H.B. 2883 By: Romo 05-04-95 Committee Report (Unamended) BACKGROUND Currently, tax assessors-collectors shall assess, collect, or assess and collect taxes for another taxing unit if required by law or by an intergovernmental contract as provided by Section 6.23, Tax Code. Additionally, Section 6.24 allows the governing body of a taxing unit other than a county to contract (as provided by the Interlocal Cooperation Act) with the governing body of another taxing unit or with the appraisal district board of directors to perform assessment or collection duties. The commissioners court may contract with another taxing unit or the appraisal district for assessment or collection duties -- with approval of the elected county assessor-collector. Section 6.27 provides that county assessor-collectors who assess or collect for another taxing unit are entitled to a reasonable fee, not to exceed actual costs, when required by law or an action by a contracting governing body. The section also requires reasonable compensation for assessor-collectors for taxing units other than the county for assessing or collecting taxes as required by law, action by a contracting governing body or by intergovernmental contract. The Attorney General has defined "actual costs" as the costs that the collecting unit incurs over and above those it would incur if it were not collecting for another unit. PURPOSE This bill would authorize the commissioners court of a county with a population of 1.185 million or more to approve a fee for the county tax assessor-collector for assessing and collecting taxes for another taxing entity. Additionally, it provides the same ability for the governing board of another taxing unit other than a county. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 6.27 (Compensation for Assessment and Collection), Tax Code, to provide that the commissioners court (in counties with a population greater that 1.185 million), and the governing body (in taxing units within counties with a population greater than 1.185 million) would set the collection fee for assessing or collecting for other taxing units. Deletes references to "actual costs." Provides that this section prevails over Section 6.23 if there is a conflict. SECTION 2. Effective date: September 1, 1995 SECTION 3. Emergency clause SUMMARY OF COMMITTEE ACTION Public notice was posted in accordance with the rules, and a public hearing was held on April 25, 1995. Representative Romo explained the bill. Without objection, H.B. 2883 was left pending before the committee. On May 2, 1995, the committee met in a public hearing and considered H.B. 2883 on pending business. By a record vote of 7 ayes, 0 nays, 2 present not voting and 2 absent, the committee voted to report H.B. 2883 to the House without amendment with the recommendation that it do pass. Testimony received in favor of the bill (4/25/95): Dan Johnson, representing himself and Bexar County