Primary Department: Tax Assessor-Collector
Primary Department Head/Elected Official: Annette Ramirez
Secondary Department: N/A
Secondary Department Head/Elected Official:
Regular or Supplemental RCA: Regular RCA
Type of Request: Policy
Project ID (if applicable): N/A
Vendor/Entity Legal Name (if applicable): N/A
MWBE Contracted Goal (if
applicable): N/A
MWBE Current Participation (if applicable): N/A
Justification for 0% MWBE Participation Goal: N/A - Goal not applicable to request
Grant Indirect Costs Rate (if applicable): N/A
Justification for 0% Grant Indirect Costs Rate (if applicable): N/A - Not a grant item
Request Summary (Agenda Caption):
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Request for approval to update the Harris County Tax Office’s property tax collection fee rate.
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Background and Discussion:
In 2007, UHY advisors TX, LP submitted the Harris County Tax Collection Fee Model report to Commissioners Court, which established the current collection fee model. The fee schedule recommended in the report was approved by Commissioner’s Court on July 10, 2007. Since its adoption, the Harris County Tax Office (HCTO) has continued to follow the rate model without adjustment, which, when coupled with increasing costs, has resulted in fees that no longer fully cover the costs of property tax collection services.
The proposed fee rate uses the original model fee structure, but updates the fee rate, better aligning collection fees with actual costs and ensuring an equitable distribution of costs across all 84 jurisdictions. The revised rate will also enable HCTO to recover the full cost of providing collection services for these jurisdictions.
This update is consistent with Harris County’s five-year financial plan, which includes the strategic objective of periodically reviewing and updating fee structures to ensure they reflect the true cost of services and achieve full reimbursement of both direct and indirect costs.
Expected Impact:
For FY2026, the total cost of providing property tax collection services is projected to be $20,484,786. Under the existing fee, HCTO is expected to collect $14,813,454.60, resulting in a gross under-recovery of $5,621,707. This gap reflects the misalignment between the existing fee rate and the actual cost of delivering services. Of this amount, however, $1,291,333 represents the collection fees that Harris County is charged. That collection fee is deposited back into the County’s General Fund leaving an effective shortfall of $4,330,375. This proposed rate adjustment will, therefore, generate $4,330,375 in additional revenue for the General Fund.
The proposed rate adjustment will increase from $1.10 per taxpayer account (parcel) and $0.0275 per $100 of tax levy, with a maximum fee capped at 2% of total levy, to $1.35 per taxpayer account (parcel) and $0.060 per $100 of tax levy, with the 2% of total levy cap remaining in place.
Implementation of the updated fee rate is expected to significantly reduce or eliminate the current funding shortfall by aligning revenues more closely with actual service costs. It will also generate $4,330,375 in additional revenue for the General Fund, improve overall cost recovery, and ensure a more equitable allocation of expenses across all jurisdictions. Collectively, these impacts support the long-term financial sustainability of tax collection services and ensure that Harris County fully recovers the cost of services provided in alignment with its five-year financial plan.
Alternative Options:
An alternative option is to take no action and maintain the current fee rate.
Maintaining the current rate would result in the continued under-recovery of collection service costs, as projected revenue would remain below the actual cost of providing services. As a result, Harris County would continue to subsidize property tax collection services, and costs would not be equitably distributed across all jurisdictions. This option would also be inconsistent with Harris County’s five-year financial plan to ensure full recovery of costs and alignment between fees and the true cost of services provided.
County Strategic Plan Goal: N/A
County Strategic Plan Objective: N/A
Justice/Safety Initiative (Goal 1): N/A
Infrastructure Initiative (Goal 2): N/A
Economy Initiative (Goal 3): N/A
Health Initiative (Goal 4): N/A
Climate/Resilience Initiative (Goal 5): N/A
Housing Initiative (Goal 6): N/A
Additional notes related to the Strategic Plan:
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Anticipated Court Date: 5/14/2026
Anticipated Implementation Date (if different from Court date): Click or tap to enter a date.
Emergency/Disaster Recovery Note: Not an emergency, disaster, or ARPA related item
Contact(s) name, title, department: Samantha Kealoha, Chief of Staff, Harris County Tax Office
Attachments (if applicable): HCTO Property Tax Collection Fee Rate Analysis