Momentum - Business to Business Online Magazine MOMENTUM April 2019 | Page 30

TAXING MATTERS CHERYL E. JOHNSON, PCC Galveston Co. Tax Assessor Collector [email protected] BANG for the Buck? W hen Tiki Island property owners paid 2018 property taxes, only one check was necessary since the County Tax Office collects for all governments within its boundaries. That is true for few property owners across Galveston County – most (myself included) must write two checks to (usually) two different tax collectors. Under Texas law, individual governments have the authority to determine who will assess (calculate) and collect property taxes. In Galveston County, five private collection companies collect taxes for 29 special purpose districts (MUDs, WCIDs, MDs). Four of eight school districts collect their own with the local school board hiring the tax collector. Two of those also collect for a special purpose district mostly within their boundaries. The Galveston County Tax Office (GCTO) assesses and collects for 53% of the taxing entities in the County including two cities that extend into Harris County. Last year, we collected nearly $450M at a cost to our collection partners of $105,600. The Property Tax Code dictates how much a county tax office may charge (an amount that “…may not exceed the actual costs incurred…”). Of no surprise to anyone, Texas’ 254 counties have wildly different ideas on how to determine what that cost is. The 2019 GCTO charge is $0.21 per-parcel for Galveston County properties and $0.97 for Harris County properties. The rate is analyzed each year to determine whether an adjustment is needed. While cost is often a driving force behind the decision to contract for tax assessment and collection services, convenience—for both the local government and taxpayers is significant. GCTO’s 24/7 online account information and multiple office locations provide customers various options of conducting business. Whether one less check to write or one less errand to run (one stamp/one stop), centralized tax collections save taxpayers time and governments money, translating to savings for everyone. A candidate for US Congress stated some years ago that government should not perform any task that a private business can do for less. I wholeheartedly agree. And although the County has a huge advantage in this instance, the focus on efficiency and implementation of technology to lower cost over the last 14 years at the County Tax Office has driven 28 MOMENTUM the per parcel rate down by more than 50% - a rare accomplishment for government in general. As all government focus begins a shift to adopting the next spending plan, property owners and voters need to ask how much could be saved if tax assessment and collection services were provided by the County Tax Office. Governments collecting their own taxes are listed below as are the GCTO estimated costs (excluding a one-time conversion fee). You deserve bang for the buck when it comes to paying for government. After all, it is not our money – it is yours! Jurisdiction Clear Creek ISD Texas City ISD Santa Fe ISD GC Consolidated Drainage Dist. Friendswood ISD MUD District #6 (the Landing) WCID 8 Alta Loma Galv County MUD #39 MUD District #14 Galv County MUD #46 MUD District #15 West Ranch Management District South Shore MUD #7 Galv County MUD #45 Galv County MUD #43 Bay Colony West MUD Galv County MUD #56 Galv County MUD #32 Flamingo Isles MUD Galv County MUD #66 Galv County MUD #31 Galv County MUD #30 Galv County MUD #68 Galv County MUD #52 Galv County MUD #54 Galv Co Management District #1 Galv County MUD #59 Galv County MUD #58 Galv County MUD #51 Galv County MUD #57 Galv County MUD #55 Galv Co MUD #53 GCTO Cost $60,861 $6,216 $3,324 $2,713 $2,657 $580 $452 $326 $318 $305 $305 $295 $289 $233 $223 $218 $188 $105 $105 $80 $78 $73 $65 $50 $31 $11 $3 $3 $2 $2 $2 $1