The Quitman School District held a public meeting on Tuesday, July 23, 2019. The public meeting was held to discuss a dispute between the school and the Clarke County Board of Supervisors (BOS) regarding ad valorem taxes received by the county from the BTH Quitman bankruptcy order. It is estimated the county could have received roughly $1,500,000 in the settlement.
Since the taxes are ad valorem taxes, the question has been raised of whether the school is due the money or whether the county can keep the money.
In the year BTH Quitman did not pay the taxes due, the BOS raised taxes to pay the school the money it requested for that year. If this had not happened, the school would have issued a shortfall note for any shortage of tax collections. In the following year, the shortfall would have been added to the school’s tax request. However, in the current case, if the taxes are paid to the school, the school may incur an escrow; i.e. a surplus. The escrow would then be used to reduce the school’s request the following year. However, the escrow amount would be added back to the school’s base the year after that; therefore, increasing the tax request perpetually unless the school manages the tax request to save the taxpayers the money.
In addition, BTH Quitman came off tax rolls and the county’s assessed valuation has decreased, causing a shortfall in the 2018-2019 school year. The property should be added back in October 2019 as it is now operated by another entity. These changes in property values can also impact the tax calculations made by both the school and the BOS.
During the meeting school board attorney, Robert Compton, outlined the demands allegedly made by the supervisors to the school. Those include a request to enter into a “friendly” lawsuit, a request to repay the county legal fees incurred during the bankruptcy proceedings (approximately $376,000), and a request to retain the ad valorem taxes paid by BTH Quitman.
Compton stated the first phone call regarding the BTH taxes was made by Greg Snowden, attorney for the BOS, to Compton on November 1, 2018. A meeting was also held between the two entities on November 12, 2018 with the attorneys and one member of the BOS present at a school board meeting.
Following the receipt of an Attorney General’s Opinion requested by Compton, a demand letter was issued to the Clarke County Tax Collector on June 28, 2019 requesting the ad valorem taxes the school claims they are due.
At the close of the presentation, the QSD Board of Trustees allowed those in attendance to write their questions on a postcard which had been handed out at the beginning of the meeting. The questions were to be turned in to the staff and would be read aloud and answered publically. The mayor of Quitman and the four members of the BOS in attendance were disgruntled with this method of a forum and complained that they were not able to verbally present their case. They, along with their attorneys left the meeting. A few taxpayers did dutifully write their questions and heard an answer before they also left the meeting.
As of this date, no agreement has been made between the Clarke County Board of Supervisors and the Quitman School District as to who has the right to the funds.
