A mediator will try to help Bee County and Beeville Independent School District settle the dispute over the cost of tax collection services.

District Court Judge Joel Johnson has ordered both parties to enter into mediation and return with a solution — if possible — within three months.

Bee County commissioners voted last month to increase tax collection fees for the four school districts from $1.50 per parcel of property to $1.98.

Commissioners ordered the county tax assessor-collector not to send out tax bill notices for the four school districts unless they paid the higher rate.

Beeville ISD, Skidmore-Tynan ISD, Pettus ISD and Pawnee ISD balked at the higher fee.

BISD can expect to pay an additional $7,000 or so if the higher rate is enforced, Precinct 2 Commissioner Susan Stasney said. The other school districts will each pay between $2,500 and $3,500 in additional costs.

All four school districts have already adopted their budgets and set their tax rates for the 2009-10 school year.

Beeville ISD filed a writ of mandamus earlier this month against Bee County, which essentially seeks to force the county to collect the school district’s taxes this year.

The other three school districts also plan to join BISD in taking legal action against the county unless a solution can be reached.

The mandamus, filed in district court, is styled Beeville ISD v. Bee County and names the county judge, all four commissioners and the tax assessor-collector as parties.

Bee County Judge David Silva said the county has agreed to the terms of the writ, which are:

• The Bee County tax assessor-collector is to proceed with the printing of tax bills and the collection of BISD’s taxes for 2009.

• The parties to this litigation are ordered to participate in non-binding mediation within 90 days of the date of this order and report to the court the outcome of the mediation.

• If no agreement between the two parties is reached in mediation as to the costs of collection, the parties are ordered to request a hearing to seek a ruling regarding the costs of collection and any other unresolved issues remaining in this case.

Commissioners met in executive session on Friday, Oct. 9, to discuss the pending litigation. They returned to open session and made six motions, which were:

• Rescind the motion approved by the commissioners court on Sept. 28 regarding the 2009 tax collection fees.

• Authorize the tax assessor-collector to proceed with the mailing of the 2009 consolidated tax statements, including all taxing jurisdictions.

• Authorize the tax assessor-collector to honor all contracts with Bee County at a 1 percent collection fee for all “ad valorem taxes, penalties and interest collected by the county on behalf of the taxing unit.

• Suspend the authorization for the tax assessor-collector to collect $1.98 per parcel of property as actual costs and/or reasonable fees for all jurisdictions which have adopted resolutions requiring the tax assessor-collector to collect their taxes, until the issue of the fees for services is resolved.

• Authorize engagement of the services of Jim Allison to represent Bee County regarding the pending litigation.

• Authorize the county attorney to sign off on the agreed order and to contact each of the school districts regarding the commissioners court’s latest motions.

In an effort to save taxpayers money by doing away with individual tax offices, staffs and associated costs, a state law enacted in 1984 allows schools to contract with county governments to assess and collect their taxes.

“This has saved the public the cost of BISD independently assessing and collecting its taxes and has been a convenience to taxpayers, who receive a single tax bill listing the taxing jurisdictions and the taxes owed to each,” BISD stated in its writ.

The law allows county governments to assess “reasonable fees” in the assessment and collection of taxes for other taxing entities but counties cannot exceed the county’s actual costs for such services.

Commissioners say they believe the $1.98 rate is reasonable, and they base that belief on the fact that the amount was recommended by a two-member committee appointed by Bee County and BISD last fall.