SPEARS CALLS ON TEXAS SENATORS TO BACK MEASURE ENDING PRIVATIZATION OF TAX COLLECTION EFFORTS

Travis Co. Tax Collector With State’s Top Collection Rate Says Privatization Costs Jobs, Tax Dollars

(AUSTIN) — Travis County Tax Collector Nelda Wells Spears, having compiled the best tax collection rate of any county office in the state, today called on Texas senators Kay Bailey Hutchison and John Cornyn to back a measure approved by the U.S. House on Wednesday to end a program that funds private debt collectors so that they can pursue taxes owed to the federal government by individual citizens and small businesses.

“Steering public resources into private hands is a bad idea that wastes tax dollars and exposes citizens to harassment by private debt collectors,” Spears said. “The House did the right thing in voting to end this scheme, and I hope our state’s two senators will, too.”

Spears said the U.S. House of Representatives voted on Wednesday to end the Republican-backed program, which was enacted in 2004. Yesterday’s bill passed with a wide 232-173 majority and is supported by taxpayer advocates concerned about misuse of citizens’ personal financial information.

The measure now heads to the U.S. Senate, where it faces stiff opposition from Republican lawmakers. Support for the measure from Senators Hutchison and Cornyn could make the difference, Spears said.

“The little old Travis County Tax Office has set the standards for successful tax collections,” Spears said, noting that her office once again collected more than 99 percent of all taxes due last year. “The IRS is one of the biggest and best-funded bureaucracies on earth. If they need some advice about how to do a better job, we’d be happy to help. But privatization isn’t the solution.”

As Travis County’s chief tax expert, Spears has helped lead the fight against outside special interests who continue to try to engineer a county contract to go after unpaid taxes.

According to estimates by the Travis County auditor, privatizing the county’s collection efforts would add as much as 20 percent to individual delinquent tax bills, making it that much more difficult for local taxpayers struggling to pay their obligations. The extra charges would go to pay private attorneys’ fees and commissions.

Last week, Spears submitted her official report to the Commissioners Court for the year ending September 30, showing that her office once again achieved a record tax collection rate, filed 10 percent fewer lawsuits, and brought in more than $1.8 billion in taxes to fund public schools, public health, and public safety.

Had a contract with an outside firm been in place this year, Spears said, taxpayers would have paid an extra $2.4 million in fees to private lawyers during the three months from July to September.

The Travis County Tax Collector is responsible for collecting property and vehicle taxes and serves as the county’s official voter registrar. Spears has achieved a 99 percent tax collection rate two years in a row, the state’s best.

Certified by the State Board of Tax Professional Examiners, Spears previously served as chief deputy to Tax Assessor-Collector Cecelia Burke and personnel director for State Comptroller Bob Bullock and Land Commissioner Garry Mauro.

Spears recently received the prestigious Best Practices Award for Exceptional Delivery of Services from the Texas Association of Counties Leadership Foundation. She also received the 2007 ComputerWorld Honors Laureate for the Application of the latest technology to improve access for taxpayers and small businesses.

Posted on October 11, 2007 | Return to the NEWS Archive