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Lubbock County Commissioners this week approved a contract with the law firm Perdue, Brandon, Fielder, Collins & Mott for services in collecting the overdue fees. Lubbock County Tax Assessor-Collector Ronnie Keister said he believes the majority of the late fees are not intentional, but the county is seeking outside help because there’s a little more than $24,000 in delinquent fees that are impacting the budget. “They’ve sat on the books long enough that we felt like we needed to do something to clear them,” said Keister. “That’s where the (law firm) comes in. They’re the delinquency property tax law firm for the county and the city and as a government agency, we shouldn’t have outstanding accounts just sitting there.” Keister said he believes the majority of the unpaid fees for beer and liquor licenses are due to a somewhat new billing procedure. In the past, he said, the county would collect both the state’s and the county’s portion for fees and permits.
This meant a business couldn’t get its license from the Texas Alcoholic Beverage Commission until it was fully paid. Around five yeas ago, he said, the TABC implemented a new billing system in which the state and county collect their own fees. The city has, and still does, bill separately. Keister said he thinks when businesses pay the state and the city they think the county is somehow included, but it’s not. “What happens now is people will pay the state for their license, which makes TABC happy, and then the city and county send them letters saying please pay us what you owe us,” said Keister. “The city bills first, and the county bills second for identical amounts.
So they’re getting bills that look the same, and they think, well I already paid this.” Aside from the miscommunication, Keister suspects there’s at least a few establishments who just aren’t paying. The county says there’s a total of 39 customers who have delinquent beer and liquor fees owed the county. Businesses are required to get a renewal every two years. If a business hasn’t paid, Keister said they notify TABC and they put a hold on their renewal. Lee Ann Dumbauld with the Tax Assessor-Collector’s office said each type of license has its own fee associated with it, which can range from upwards of $900 to as low as $60 for a two-year period.
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According to the TABC’s website, the city and county may levy and collect a fee not to exceed one-half the state fee for each permit. In Fiscal Year 2016-17 the county budgeted $1.3 million for revenue associated with the state mixed drink tax.
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Dumbauld said the law firm will clarify details for the 39 establishments — make sure addresses are the same, ownership is still accurate and the LLC hasn’t been dissolved before sending out notices. There may be some instances where the business closed or changed names.