After last month’s termination of the agreement to collect the city of Pacific’s taxes, the Franklin County Commission renewed the contract Tuesday.
The agreement was terminated because County Collector of Revenue Linda Emmons said a Pacific ordinance was causing problems for her office.
First District County Commissioner Tim Brinker said getting the agreement renewed shows an effort by city and county officials to work together to resolve the matter.
“We’re on the right track,” Brinker said.
The old ordinance required property owners to satisfy all of their old city taxes before business licenses were granted.
Emmons said some property owners were asking her to split out the city taxes from the rest of their tax bills.
But Emmons said she did not have the time to split out the tax bill and did not think it would be fair to the other taxing entities if she allowed the taxpayers to only pay their city taxes.
The problems continued, and Emmons decided that terminating the contract was the best answer.
The Pacific Board of Aldermen amended its ordinance to make it more business friendly, said City Collector Debbie Kelly.
She said the new ordinance only requires the person applying for a license, not the building owner, to have taxes and utility bills satisfied.
This way, a building can still be rented for a business even if the owner has past due taxes, Kelley explained.
The old ordinance required the building owner and the person applying for the license to both be up to date on taxes before a city business license was granted, Kelley said.
Emmons said Pacific’s new ordinance mirrors the city of Washington’s, which the county also collects taxes for.
Under the new contract, Pacific will annually pay Emmons $2,000 and the county clerk $2,000. That is the same as the old agreement.
In addition, a 1.5 percent commission on property taxes will go to the county’s general revenue. The commission will be 2 percent for delinquent taxes. An assessor’s maintenance fee of one-half percent also will be charged.