Former Bee County Tax Assessor-Collector Andrea Gibbud told commissioners last year that the fee the county charges other taxing agencies to collect their taxes far exceeds the amount the state allows counties to charge for tax collection services.

Gibbud, who did not run for re-election last year, made the statement after commissioners voted last year to charge the school districts $2 per parcel of property.

At that rate, Beeville public schools would have paid $26,200 to have the Bee County tax assessor-collector’s office collect taxes. Pawnee ISD would have paid $9,200, Pettus ISD would have paid $14,490 and Skidmore-Tynan would have paid $8,850.

That means all four school districts would have paid the county $58,740 for tax services to the county if they accepted the $2 per parcel fee.

The school districts did not accept the higher rate and BISD threatened to take legal action against the county if it did not collect the school district’s taxes at the lower amount. Shortly afterward commissioners rescinded their motion and voted to set the rate at $1.50 per parcel, the same amount the school districts paid for tax collection services the year before.

But Gibbud cautioned commissioners last year that the state tax code prohibits the county from charging other taxing entities more than what it cost the county to collect its own taxes.

“If all the (taxing) jurisdictions went away, there would still be a tax office, there would still be tax bills to mail, there would still be a need for a computer program and computers to run that program on,” she said. “There would still be a need for postage, there would still be a need for envelopes, there would still be a need for staff because the county would still have taxes to collect.”

She said the county only spends an additional $3,000 or so collecting taxes for the other taxing entities.

“You are the only ones who have the authority to determine actual costs,” she told commissioners. “But I think you have to use the definition that’s provided in the various attorney general opinions in effect and not come up with some cost that has nothing to do with what it actually cost the county to collect its own taxes. I think this is a situation where a definition has been created and not what is actually in the tax code.”

County Attorney Mike Knight agreed the commissioners court was the only entity that could set the rate for tax collection services and decide what the actual cost of the service to the county.

However, he added, commissioners can always set a rate and the school districts can always negotiate for a lower amount, hire someone else to collect their taxes or collect taxes themselves.

“It makes sense; a county can’t be forced to subsidize a school district,” he explained. “In other words, we are entitled to our costs for collecting for the school districts. And by the same token, we’re not supposed to be making money off them. It’s very simple. The court sets its own fees; if the school districts disagree, they compromise it out or they both go their own way.”

Commissioners agreed in December 2008 to appoint a two-person committee to study the issue and return with a recommendation.

One of the committee members would be appointed by the commissioners court and one by BISD.

That committee presented its study to commissioners in early August and recommended a $1.98 per parcel fee.

The commissioners waited until Sept. 28 before voting to adopt the higher rate.

BISD and the other three school districts balked at the higher rate and BISD’s attorney filed documents in district court that called for the county to collect the school district’s taxes at the lower rate.

Both BISD and the county have since agreed to mediate the matter in hopes of reaching a compromise.