The Pearland ISD board on Nov. 11 approved a resolution to increase the additional penalty for tax-collection costs on delinquent taxes from 15% to 20%, effective for the 2025 tax year and thereafter, consistent with the Texas Tax Code allowance for school districts.
Superintendent Larry Berger explained that the district partners with a third-party collection firm and that the penalty increase is intended to align with other local taxing entities and to defray third-party collection costs. "We haven't allowed 15% since 1979," Berger said, urging trustees that rising collection costs make an increase appropriate.
Following the resolution, trustees approved a contingent-fee contract recommendation for Brandon, Fielder, Collins & Mott LLP to handle delinquent tax collection. A representative from the firm, Mike Darlow, told the board there is "no cost to Pearland ISD" for the contract and that taxpayers who pay on time are not impacted. The board approved both items by vote (motion carried 6–0, one trustee absent).
Action items: Board adopted the 20% additional penalty resolution and approved the contingent-fee contract. Staff said the district will continue to receive only taxes actually collected and will not incur net collection costs.