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Cherokee County, school system agree to aircraft audit program to recover untaxed planes
Summary
County commissioners approved a contract with Aviation Capital Partners for an aircraft‑valuation audit and an intergovernmental cost‑sharing agreement with the Cherokee County School System to fund the work.
Cherokee County commissioners on March 18 approved a contract with Aviation Capital Partners LLC (doing business as Specialized Tax Recovery) to perform an aircraft valuation auditing program intended to identify untaxed or misreported aircraft in the county. The board also approved an intergovernmental agreement with the Cherokee County School System to share the cost of the program.
The county’s agreement with Aviation Capital Partners has an initial cost to review the last five years of tax data estimated at $253,062 and a not‑to‑exceed total contract value of $350,000 for the term. The vendor will be compensated only from recovered taxes (a contingency fee); the county’s presentation noted there are no upfront costs. County staff said subsequent years’ work is expected to cost significantly less than the initial review.
Under the intergovernmental agreement approved the same night, costs will be shared on an annual basis based on the distribution of ad valorem taxes: Cherokee County’s share is set at 30% and the school system’s at 70%. For the current year that allocation equates to approximately $75,918 for the county and $177,143 for the school system, as stated in the meeting record.
During discussion the chair noted the vendor’s fee is a finder's fee that will be taken from recovered tax revenue and told the board the arrangement had been vetted at the work session. The motion to authorize the Aviation Capital Partners agreement was made by Commissioner Wetherby and seconded by Commissioner Carter; the intergovernmental agreement with the school system was moved by Commissioner Carter and seconded by Commissioner West. Both motions carried unanimously.
Commission staff said the program aims to increase local ad valorem tax compliance and revenue with limited fiscal risk because payment to the vendor occurs only if additional taxes are recovered. The board approved related budget and intergovernmental items that reflect the county’s and school system’s shares.
