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87-01 O - Delinquent Tax Collection • gf ORDINANCE NO. 87-01 AN ORDINANCE OF THE CITY OF PROSPER, TEXAS, PROVIDING AN ADDITIONAL PENALTY TO DEFRAY COSTS OF COLLECTION OF DELINQUENT PROPERTY TAXES; PROVIDING FOR A TAX LIEN TO ATTACH TO THE PROPERTY ON WHICH THE TAX IS IMPOSED; PROVIDING THAT ATTORNEY' S FEES MAY NOT BE RECOVERED IN A SUIT TO COLLECT DELINQUENT TAXES SUBJECT TO THE PENALTY; PROVIDING NOTICE OF THE DELINQUENCY AND OF THE PENALTY TO THE PROPERTY OWNER; PROVIDING A SAVING CLAUSE AND AN EFFECTIVE DATE. WHEREAS, H.B. 30 which was adopted by the 67th Legislature of the State of Texas, First Called Session, amended the State Property Tax Code by adding Section 33.07 thereto which allows taxing units that contract with an attorney for the collection of delinquent taxes to adopt an ordinance providing that certain delinquent taxes incur an additional penalty to defray costs of collection; and WHEREAS, the CITY OF PROSPER, TEXAS, has contracted with an attorney for the collection of delinquent property taxes; and WHEREAS, the City Council of the CITY OF PROSPER, TEXAS, is desirous of adopting an ordinance imposing an additional penalty to defray costs of collection of delinquent property taxes; NOW, THEREFORE, be it ordained by the City Council of the CITY OF PROSPER, TEXAS, that: Section I. From and after the passage of this ordinance and publication as may be required by law, taxes that remain delinquent on July 1 of the year in which they become delinquent shall incur an additional penalty to defray costs of collection so long as the CITY OF PROSPER, TEXAS, has contracted with an attorney, pursuant to Section 6..30 of the Property Tax Code, V.A.T. S. , for collection of the taxes against which the additional penalty is imposed. Section II. The amount of the additional penalty imposed herein shall be an amount of money equal to fifteen percent ( 15%) of the amount of taxes, penalty and interest due. 110 Section III . A tax lien shall attach to the property on which the tax is imposed to secure payment of the penalty. Section IV. If a penalty is imposed pursuant to this ordinance, the CITY OF PROSPER, TEXAS, may not recover, in addition thereto, attorney' s fees in a suit to collect delinquent taxes subject to the penalty. Section V. The Tax Collector of the CITY OF PROSPER, TEXAS, shall deliver, as required by the State Property Tax Code, V.A.T. S. , a notice of the delinquency and of the penalty to the property owner at least thirty (30) and not more than sixty ( 60) days before July 1 of the year in which the taxes become delinquent. Section VI . Should the CITY OF PROSPER, TEXAS, contract with another taxing unit for the collection of taxes, then the provisions of this article shall survive and be applicable to the delinquent taxes collected by the taxing unit collecting taxes for the CITY OF PROSPER, TEXAS; and, in such event, the notice required by Section V hereof shall be delivered by the Tax Collector for the contracting taxing unit. Section VII. It is hereby declared to be the intention of the City Council of the CITY OF PROSPER, TEXAS, that the sections, paragraphs, sentences, clauses and phrases of this ordinance are severable; and if any phrase, clause, sentence, paragraph or section of this ordinance shall be declared unconstitutional, such unconstitutionality or invalidity shall not affect any of the remaining phrases, clauses, sentences, paragraphs or sections of the ordinance since the same would have been enacted by the City Council without the incorporation in this ordinance of any such unconstitutional or invalid phrase, clause, sentence, paragraph or section. Section VIII . The caption of this ordinance shall be published three (3) times in a newspaper having general circulation of the CITY OF PROSPER, TEXAS. This ordinance and enforcement of its provisions shall become effective on or after its passage and publication as required by law. f PASSED AND APPROVED BY THE CITY OF PROSPER, TEXAS, ON THIS 11. THE 12 DAY OF MAY , 1987. CORRECTLY ENROLLED: City Secr to DBM-247