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Pearland ISD board raises additional delinquent-tax penalty to 20% and approves contingent-fee contract
Summary
Trustees voted to increase the additional penalty for delinquent tax-collection costs from 15% to 20% (allowed by Texas tax code) and approved a contingent-fee contract recommended for Brandon Fielder, Collins & Mott LLP; district staff and the vendor said the change imposes no net cost on the district.
Pearland ISD trustees voted Nov. 11 to increase the additional penalty for tax-collection costs from 15% to 20% for the 2025 tax year and subsequent years, and to approve a recommended contingent-fee contract with Brandon Fielder Collins & Mott LLP.
Superintendent Larry Berger explained that state law permits school districts to adopt an additional penalty of up to 20% on delinquent taxes to defray collection costs. "We are currently collecting a penalty of 15% that was established in 1979," Berger said, recommending the board approve a resolution to move to the 20% threshold.
Trustees asked whether the increase shifts costs to taxpayers who pay on time; Berger and representatives for the recommended collection firm said the penalty is levied on delinquent taxpayers and that the district incurs no direct cost for the service. Mike Darlow, a representative for the collection firm, told trustees, "There is no cost to Pearland ISD." He added the change would align Pearland ISD with other taxing entities in the county.
After discussion the board approved the resolution to raise the penalty and then approved the written findings and contingent-fee contract recommended for Brandon Fielder Collins & Mott LLP. The votes on both items passed 6–0 with Trustee Scheffler absent.
Implementation notes: the increase would be effective for the 2025 tax year and would be applied to delinquent accounts per Texas tax code procedures; the contingent-fee contract will govern third-party collection activity.
Next step: the district will execute the contingent-fee contract and apply the revised penalty rate for delinquent accounts in accordance with state law and district procedures.
