Mayor & Council of the City of Fort Valley v. Grills

The city of Fort Valley was unauthorized to charge a $75 collection fee to all persons paying overdue property taxes, since O.C.G.A. § 48-3-9 a only allows for collection of the costs associated with the delinquent tax collection process after a tax sale has occurred.

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Joseph Grills filed an action for declaratory judgment against the Mayor, Council, and Administrator of the City of Fort Valley, Georgia collectively, “the City”, seeking to determine the legality of a $75 collection fee charged by the City to all persons paying overdue property taxes. The trial court granted judgment for Grills, holding that the City had no statutory authority to collect the fee until after the property was levied upon. The City appeals. Grills purchased real property in 2002 and assumed responsibility for paying taxes on the property. When the 2002 tax assessment on the property went unpaid, the City issued an execution against the former owner for unpaid property taxes of $188, plus “costs and interests” of $44, for a total of $232. The City referred the matter to a law firm for collection.

The law firm sent Grills a letter demanding payment of $232 plus a “Collection fee” of $75, for a total of $307. According to the City, the collection fee represents “a charge for reimbursement of the City’s costs and expenses associated with delinquent tax collection process.” More specifically, the City has stated that the fee represents costs and expenses incurred in the tax execution process, namely the costs of examining the delinquent tax list, researching title, records and owners’ current addresses, and preparing and mailing correspondence to owners.

Mayor & Council of the City of Fort Valley v. Grills

The city of Fort Valley was unauthorized to charge a $75 collection fee to all persons paying overdue property taxes, since O.C.G.A. § 48-3-9 a only allows for collection of the costs associated with the delinquent tax collection process after a tax sale has occurred.

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