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Commission approves $263,922 to cover Humane Educational Society county tax bill; commissioners press for future contract safeguards
Summary
Hamilton County approved an appropriation of $263,921.71 to pay back taxes for the Humane Educational Society to prevent foreclosure, while some commissioners urged adding reversionary protections or deed language for the county's previous $10 million contribution.
Hamilton County commissioners approved Resolution 125-19 on Wednesday, authorizing a one-time appropriation of $263,921.71 to the Humane Educational Society of Chattanooga to cover county property taxes the nonprofit failed to exempt in prior years.
Commissioners and staff explained the appropriation is effectively a pass-through: the county will provide funds to the Humane Educational Society so the society can pay county taxes owed because it did not file for a state tax exemption in those years. County finance staff said the action is intended to resolve an urgent tax-collection issue and avoid foreclosure or an auction involving the society's building.
Commissioner Graham and others noted the county provided roughly $10 million previously for the society's new building and expressed concern the county currently lacks a reversionary clause or deed provision that would preserve a county interest if the society ceased operations. Commissioner Graham urged the society's board to consider adding a reversionary clause or other protections to preserve county taxpayers' investment.
Jim Kennedy, volunteer president of the Humane Educational Society, said the society's executive director had resigned; he urged the commission to approve the appropriation. County finance director Lee Browner explained that because the society missed the exemption filing, the county had the legal obligation to collect the taxes but could provide the funds now to bring the society current. Browner said the appropriation is effectively a breakeven for the county compared with what the county would have collected if the society had filed for an exemption.
Commissioners said they would support the appropriation to avert immediate harm, but several said they wanted stronger contractual protections in any future county agreements with the society to protect taxpayer investments. The resolution passed on a roll call vote.
