The Cost of Being Taxed

By Cheryl E. Johnson, Galveston County Tax Assessor and Collector/Taxpayer Advocate

The Tax Office currently contracts with all cities, most school districts, both junior college districts and a handful of special purpose districts providing assessment and collection services at a cost of $0.32 per parcel ($1.01/parcel for out of county properties)—less than the cost of a stamp.

This year, we collected nearly $352M at a cost to our collection partners of $164,000…not a bad return on investment.  How can we do this for so little money?  We have no choice.  The law allows county tax offices to charge only the “incremental additional cost” which equates to a line of ink and a handful of additional personnel and their infrastructure needs.

While cost is often a driving force behind the decision to contract for tax assessment and collection services, convenience—for both the local government and taxpayers is significant.  GCTO’s 24/7 online account information and multiple office locations provide customers various options of conducting business.  Whether one less check to write or one less errand to run, centralized tax collections save taxpayers time and governments money, translating to savings for everyone.

Governments in the collecting their own taxes are listed below as are the GCTO expected cost (excluding one-time conversion fees).  As local governments begin the tedious process of developing and adopting budgets, the cost to collect their own taxes should be studied.  With the cuts coming down the Austin pipeline, the relatively flat real estate market and on-going financial trends, consolidation of tax collections is an easy and cost effective way of saving money.

Cost by GCTO         Jurisdiction
$64,677    Clear Creek ISD*
$3,743    Friendswood ISD
$5,648    Santa Fe ISD
$4,272    Texas City ISD
$3,858    GC Consol. Drainage District
$220    Bay Colony West MUD
$158    Flamingo Isles MUD
$525    GC MUD # 2
$660    GC MUD # 3
$750    GC MUD # 6
$303    GC MUD # 13
$393    GC MUD # 14
$459    GC MUD # 15
$178    GC MUD # 29
$107    GC MUD #30
$84    GC MUD # 31
$64    GC MUD # 32
$337    GC MUD # 39
$268    GC MUD # 43
$92    GC MUD # 44
$83    GC MUD #45
$170    GC MUD #46
$2    GC MUD #51
$74    GC MUD #52
$3    GC MUD #57
$3    GC MUD #59
$9    GC MUD #66
$95    GC MUD #68
$7    GC Management District #1
$263    South Shore Harbour MUD # 2
$526    South Shore Harbour MUD # 6
$436    South Shore Harbour MUD # 7
$106    West Ranch Management District
$746    WCID # 8
$988    WCID # 12

* Includes 52,901 parcels out-of-county at a cost of @ $1.01/parcel