Harris Co and COH fighting over collection and use of taxes

Astrodome drainage started it

Jay Blazek Crossley, Nov 08, 11.

Harris County Commissioners Court followed through on a previous threat to ask the Texas legislature to give the County sales taxes collected for the City of Houston at county facilities - that could amount to $950,000 - in retaliation for the City imposing the new ReBuild Houston drainage fee on the county in the amount of $353,000, according to Guidry News:

Harris County Commissioners Court today voted unanimously to instruct the County Attorney and the Legislative Relations office to work with the Texas Legislature to adjust current law to compel the City of Houston to collect and immediately remit to Harris County all city sales tax revenues collected at county venues like Reliant Park that are not currently committed to retiring stadium debt. More

Commissioner Steve Radack, who objected to a drainage fee imposed on Reliant Park by the city, called it a “money grab”; and other members of the commissioners court agreed.

“I would much rather, if the city is having financial difficulties, that they ask for our help instead of laying a fee on us,” said Commissioner Jack Cagle.

The bill from City of Houston to Harris County is intended to pay for the flooding attributable to the large impervious areas of the Reliant Center and other areas owned by the county, in the same way that a private entity would pay similar externalities associated with such a project. Before the County went through with the decision, questions of how far this battle could go began to arise, according to the Houston Chronicle:

Most of the county’s tax revenue, Parker responded, comes from city residents, and county residents use city roads, parks and libraries for which they are not taxed. Parker said she would love to know what share of her county taxes are spent in the city.

“I don’t think that we necessarily as Houston taxpayers get our fair share, but I’m out there beating on Harris County about that,” she said.

Emmett said he is not interested in a precise breakdown.

“The people in the city say, ‘We pay county property taxes, but we don’t get sheriff patrols and you don’t build any roads in our area,’ ” Emmett said. “People at the county say, ‘We provide health care for the indigent and we provide jail “services” for people in the city.’ Does that even out? I have no idea.”

Following the unanimous vote by the 5 member County Commissioners Court (4 Republicans and 1 Democrat), a representative of Houston Mayor Parker offered another potential tax fight, according to the Houston Chronicle:

“Because city residents receive very little, if any, county services, perhaps city residents should be exempted from county property taxes and the county road and bridge fee,” Hall said. “I’ll be discussing this and other tax-equity issues with the mayor as we develop our legislative agenda.”

The county collects a $10 road and bridge fee with each vehicle registrations and is on track to take in $33 million this year countywide. It’s unclear what portion of that will be paid by city residents.

The Reliant Stadium complex is leased by the county to a private individual, Bob McNair, the owner of the Texans. The County could have ended that relationship earlier, in which case the private individual would have been expected to pay the new COH drainage fee associated with the large amount of impervious service, according to Off the Kuff.

(Image Credit: b2tse : flickr, creative commons license)