Coffee County commissioners consider collecting city taxes after tax commissioner seeks $55,500

Coffee County commissioners on April 27 weighed whether the county should begin collecting municipal property taxes after Tax Commissioner Shanda Henderson asked for $55,500 and sought to retain certain fee revenue, a request that prompted sharp objections from several commissioners.

City Manager Charlie Davis told the board the request had created “an unfortunate situation” that threatened residents’ convenience in paying city taxes. Davis outlined two paths: the city could pay Ms. Henderson the requested funds, or the county could step in to collect city taxes so the commissioner would not receive the money.

County Attorney Tony Rowell told commissioners the county likely can address the convenience and payment issues without the current Tax Commissioner in the role, but the logistics would need work. Rowell said the county owns the valuation software (Manatron), that the tax digest could be managed by the tax assessors’ office and that billing is currently generated by a third-party provider.

Commissioner Johnny Wayne Jowers said he asked Ms. Henderson whether about a quarter of her office’s work was city-related and, according to Jowers, she replied, "that much or more." Commissioner Jimmy Kitchens said he would not support paying Ms. Henderson for collections, adding, "not by me," and later urged the board to pursue any option “not to pay her one red cent.”

Commissioners and county staff discussed operational needs if the county assumed collections: office space, daily reconciliation, additional staff and the practicalities of segregating city and county bills in the software. Attorney Jerome Adams, who attended for the city, said handling the workload would likely require more than two people.

The board also aired legal limits on surrendering fee revenue. When Commissioner Kitchens asked whether the county could legally give up tag-fee revenue Ms. Henderson sought to retain, Rowell replied, "No you cannot," indicating any change to fee allocations would require formal authorization.

City Manager Davis said one possible compromise would have the city pay $55,000 and retain its own collections; another would have the county provide software and collection services while the city supplies personnel and reconciles daily transactions. County Administrator Wesley Vickers said he would speak with the county’s software vendor about separating and compartmentalizing bills so collections could be done without co-mingling funds.

After city representatives left the meeting at about 8:00 p.m., Commissioners reiterated positions: Kitchens and Vice-Chairman Ted O'Steen said they would not pay the requested funds. Commissioners discussed reducing the commission rate from 3.5% to 2.5%, freezing hiring for two positions tied to collections and reviewing the budget later as a way to absorb costs without paying Ms. Henderson.

Rowell said he would present the board’s suggested options to the city commission for consideration. The special called meeting ended at 8:25 p.m. with a unanimous motion to adjourn.

The board approved the amended agenda at the meeting’s start and adjourned with no formal resolution adopted on the tax-collection dispute; the county’s next steps are limited to further discussion between county and city officials and follow-up by the county attorney and administrator.