Recommend approval to renew an annual contract for the management of the City of Savannah’s delinquent property tax collection program to Delinquent Tax Services, Inc. in the amount of $104,800.00.  This contract provides for the administration of the process used to issue property liens and conduct delinquent tax sales, which are sometimes a necessary enforcement actions for the collection of property tax debt.  The contractor will perform the following professional services:

• Initial pursuit of delinquent taxes via standard collection notices
• Secondary pursuit of delinquent taxes via filing of tax executions and all legally required notices pertaining to such executions
• Conduct thorough searches for bankruptcy filings and for all entities with an interest in the property in question
• Prepare all legal notices, advertisements, and abstracts required throughout the levy process

The collection process will be cost neutral to the City with all costs for processing, materials, postage, and services at the expense of the contractor. The costs will be recovered by a flat fee from the taxpayers when delinquent accounts are paid in full to the City.  The flat fee is $30.00 per collection with a balance of less than $50.00 and $55.00 per collection with a balance of more than $50.00. For collections of accounts at the levy and tax sale status, fees will be $185.00 (maximum) per collection.

The contract term shall be from March 28, 2019 through December 31, 2019.  This is the first of four renewal options.

Approval