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Tax attorneys report on delinquent collections: about $3.4M turned over for 2023; $2.2M collected to date
Summary
Outside tax attorneys told the Clear Creek ISD board the district turned over roughly $3.4 million in 2023 delinquent taxes and has collected about $2.2 million to date; the presenters described collection categories, legal limits on settlements, and a notable case where a hospital sale created an exemption issue.
Tax attorneys for Clear Creek ISD briefed trustees on April 14 about delinquent tax accounts, collection progress and legal limits on tax settlements.
Elizabeth Wheely and Melissa Valdez of the district’s tax collection firm presented a year‑end snapshot and ongoing collection work. For the 2023 tax year, the district turned over about $3.4 million in delinquent accounts to the firm; the firm reported collecting approximately $2.2 million to date on those turn‑overs. The presenters characterized the tax office’s overall performance as strong, citing a year‑to‑date figure showing the tax office collects about 99.69% of the district’s taxes before outside collection work is required.
The attorneys explained how remaining delinquencies are categorized and pursued. Accounts are routed through a call center and, if not resolved, may be turned over to litigation. Older delinquencies remain in the portfolio: one category labeled “2016 and prior” includes two properties with a combined balance of $665 tied to a deferral loan; the oldest delinquency the presenters cited was from 1983 in that category. In the $10,000‑and‑up category, which accounts for about 46% of the remaining balance, 130 properties appear and one account was described as roughly $170,000 but subject to a pending correction by the appraisal district.
Valdez noted limitations on settlement: under the Texas Constitution and state law, district taxes must be assessed and collected equally, and collection firms generally cannot “settle” taxes in the way private debt can be negotiated. She and Wheely described cases where bankruptcy, deferral status, and ownership changes limit collection options. The presenters also described a case in which a private hospital went delinquent, then sold and the new owner qualified for an exemption, preventing seizure of the property and complicating recovery.
The presenters also noted the firm provides audit and appeal services; a recent 2022 audit recovered $3,252,000 in additional state funding for the district, and the firm is working on the 2023 audit. Trustees asked process questions, including how very old accounts are handled; attorneys explained statutory write‑off periods (10 years for business personal property, 20 years for real property) and that deferrals or bankruptcies can freeze enforcement. Trustees requested further details and thanked the attorneys for their work.
The presentation concluded with an offer to answer additional questions; trustees engaged on collection practice and statutory limits.
