Distress warrant fee increase clears first round

A measure intended to help counties cover the cost of collecting delinquent taxes advanced from general file Feb. 11.

County sheriffs currently collect a $2 fee for distress warrants issued to collect delinquent taxes on personal property, plus a $1 levy fee, a mileage charge and a commission on any taxes collected.

The charges are assessed against the debtor and are credited by a county treasurer to the county’s general fund.

Hastings Sen. Dan Lonowski, sponsor of LB900, said the proposal would increase the fee for issuing a distress warrant to $20 to better reflect the cost incurred by county sheriffs when collecting delinquent taxes.

He said the bill also would eliminate the $1 levy fee as well as a “convoluted” requirement to prorate mileage among trips when sheriffs serve multiple warrants at the same time.

For taxes collected by distress and sale, counties could collect a 10% commission on amounts not exceeding $500, an increase from $100. An 8% commission would apply to amounts exceeding $500, also an increase from $100.

Sen. Robert Clements of Elmwood supported the bill, saying he proposed a similar fee increase in his LB468. That measure, introduced last session, would cut county inheritance tax rates while also distributing replacement revenue to counties.

Clements said the fee for issuing distress warrants has not been increased in over 30 years.

Lawmakers voted 25-1 to advance LB900 to select file.