DeSoto cities pass new agreement with County on tax collection: What we know

Four cities in DeSoto County have taken the first step to resolve a contentious tax collection issue.

The issue first surfaced in March when Joey Treadway, the DeSoto County tax collector, told the DeSoto County Board of Supervisors that he would not collect city taxes without a new interlocal agreement and additional compensation for himself and tax assessor Jeff Fitch. The agreement Treadway proposed at a March DeSoto Board of Supervisors meeting included an additional $72,200 salary for him from the county, plus an increase in the fees DeSoto County cities pay Treadway and Fitch to collect and assess city taxes.

On Tuesday, Southaven, Olive Branch, Horn Lake and Hernando approved new interlocal agreements for the assessment and collection of municipal taxes by DeSoto County. Walls officials could not reached before the publication of this story about whether it also voted on an interlocal agreement. The agreements approved by the four cities will now go to the DeSoto Board of Supervisors for approval. If the supervisors approve the agreement, it still must be signed off on by Treadway and Fitch to take effect.

DeSoto County District 4 Supervisor Lee Caldwell said in March that the demands from Treadway "felt like blackmail" and that if the Board doesn’t give in to this demand, the tax collector will not collect city taxes. Treadway is running unopposed for reelection this year and his initial request for the additional compensation, in March, came after the filing deadline to oppose him had passed.

Treadway could not be reached for comment.

The cities' actions aim to avoid the possibility that they will be forced to collect their own taxes. In March, Treadway told the Board of Supervisors that he would give the cities a nine-month notice of his intention to stop collecting city taxes if updated interlocal agreements were not approved.

Here is what we know about each new agreement:

Southaven

The Southaven Board of Alderman passed its new interlocal agreement unanimously Tuesday night. According to City Attorney Nick Manley, while speaking to the board, the city will pay an extra $18,000 each to the assessor and collector, while also increasing the payment to the county from $100,000 to $125,000.

“I’m certainly OK with it,” Mayor Darren Musselwhite said when asked about his thoughts on the agreement. “I don’t know if this gets us across the goal line. Obviously, I’ve said it repeatedly, the issue here is between the county and the tax assessor. I mean, us showing we’re willing to pay more sends a message that we’re sincere about there being a solution, however that solution is between the county and the assessor and the collector. I’m hopeful they can get in the same room and work this out after this. But, no, this agreement today, I think it’s very fair and I have no concerns at all about it.”

While speaking to the Board of Supervisors in March, Treadway said that several years ago, Greg Davis, then the Southaven mayor, said it would cost the city more than $450,000 and two years to set up a department to collect taxes. Treadway further stated that it would be a "major catastrophe" if his office did not collect city taxes.

Olive Branch

Olive Branch Mayor Ken Adams declined to share any specific details of the new interlocal agreement the Olive Branch Board of Aldermen passed Tuesday night until it is officially approved by the Board of Supervisors, citing concerns that the issue might be considered a personnel matter.

The agreement with the county is best for the citizens of Olive Branch, Adams said.

"Because we don't want to crank up a tax collection office, obviously," Adams said. "It was a fair agreement. It was a fair increase, and a fair agreement."

The agreement approved by the Olive Branch board did not fully meet what Treadway requested, Adams said, but was a "reasonable" increase.

"Myself and the board think it's fair," Adams said. "Because keep in mind, that agreement dated back to 2006 or 2007, so obviously some increase should have taken place by now, in anybody's job. We think it's a fair offer, but certainly not what was requested."

Horn Lake

The city of Horn Lake passed its new interlocal agreement unanimously with no public discussion.

Hernando

The Hernando Board of Aldermen and Mayor were in agreement that the city collecting its taxes itself was not currently a feasible option.

“Quite frankly, there is no one on our staff that knows how to collect taxes,” Mayor Chip Johnson said at the Tuesday meeting. “That’s just the reality.”

The board approved a new interlocal agreement that is "no greater increase for the city of Hernando than any other municipality" according to city attorney Steven Pittman. The agreement states the city will increase what it pays to the assessor and the collector each from around $8,500 to $13,000 and to the county as a whole from $100,000 to $125,000.

“I will say since the agreement was first entered into, the number of parcels being assessed in Hernando are many hundreds, or even thousands, more than [they were] at the time being collected,” Johnson said. “And the number of bills being collected.”

Gina Butkovich covers DeSoto County, storytelling and general news. She can be reached at 901-232-6714  or on Twitter @gigibutko.

This article originally appeared on Memphis Commercial Appeal: DeSoto cities, County pass new agreement on tax collection