Commission votes to ammend school tax

Published 6:25 pm Monday, June 9, 2014

The Dallas County Commission voted Monday to amend a half-cent sales tax ordinance to fix an illegal distribution of revenue. 

Probate Judge Kim Ballard said the amendment to the tax should effectively remove any liability from the commission for the error.

“Not one dime of that money generated ever came to the Dallas County general fund, or any other fund for that matter,” Ballard said. “It has always gone directly to the Dallas County Board of Education. We hope that the two boards can work out some kind of agreement and we will look at our options to satisfy our original intent.”

Email newsletter signup

The commission passed the tax in late 2012 to prevent the Dallas County School System from being taken over for financial reasons.

“We were in the bottom of the bottom,” Ballard said.

Since its passage, the tax has generated at least $2 million dollars, but auditors said half of the money should have been paid to the Selma City School System.

Auditors discovered the discrepancy when examining county government’s finances, Ballard said. However, the latest audit is the third since the tax passed in 2012.

Ballard said auditors found the problem after finding a similar issue in another county.

The commission’s vote officially fixes any future distribution of tax dollars. Though, County attorney John Kelly previously addressed the issue by sending a letter to Revenue Discovery Systems — the county’s tax collection agency — asking that tax revenues be distributed to both public school systems in Dallas County.

“I know that’s not what you initially intended, but that’s what the law says,” Kelly said during Monday’s commission meeting.

With future problems fixed, Ballard said the school systems would need to decide how to address the $1 million that should have been given to Selma City Schools.

Ballard said the Dallas County system already spent the half-cent money, and could be devastated by a retroactive payment.

“They still desperately need the money,” Ballard said. “[Repayment] would create a huge burden.”

He plans to pursue the commission’s original intent — to only pay half-cent tax proceeds to the county school system —once both school boards decide on a solution.

However, both systems will continue to receive proceeds until the legislature reconvenes for its 2015 legislative session. The legislature would  have the legal authority to rescind the tax, Ballard said. The commission’s actions could include lobbying for a new tax, once the current one is rescinded.

The new tax would require holding an election and would be directly funneled to the county school system.

The auditor’s findings will not be publicly released until September.