To: Board of Supervisors
From: Treasurer/Tax Collector
Agenda Section: Consent
SUBJECT:
title
Request for Discharge of Accountability of Unsecured Tax Accounts
end
RECOMMENDATION(S):
Recommendation
That the Board of Supervisors:
1. Approve an Authorization of Discharge of Accountability for county tax assessments, penalties, and costs deemed uncollectable pursuant to Revenue and Taxation Code 2611.1.
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SOURCE OF FUNDING:
Not Applicable
DISCUSSION:
There are uncollectable unsecured taxes the Tax Collector recommends be placed on "inactive / discharge" status on the county's Megabyte tax collection system. The vast majority of these accounts are uncollectable due to the Assessee being a defunct corporation, bankrupt, or deceased. The remainder accounts are those for which all reasonable methods of tracking down the Assessee have been exhausted. By keeping these uncollectable accounts active the department is overestimating the amount of unsecured taxes that are collectable and expends money and staff time in efforts that have been proven unsuccessful.
This action is authorized by Revenue and Taxation Code section 2611.1 and is a prudent way to help ensure the sustainability of all other services provided. Per Revenue and Taxation Code section 2611.4, the discharge does not release the person(s) named in the verified application (Attachment 1) from the payments of any amounts which are due and owing.
FINANCIAL IMPACT:
Budgetary savings will result due to the Megabyte tax system no longer generating collection bills for these discharged accounts. The savings will be realized in reduced supplies, postage, and staff time.
The attached Megabyte report contains 201 unsecured accounts deemed uncollectable by the Tax Collector. The total amount requested for this 'Discharge of Accountability' is $ 136,181.12 [This total includes $ 108,645.64 in taxes, $ 10,863.48 in penalties, and $ 16,672.00 in fees (noted as "costs" on this megabyte repo...
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