Source: Amos Maki, Memphis Commercial Appeal, November 16, 2012
The city of Memphis is poised to move forward with a plan to allow the Shelby County Trustee to collect current and delinquent taxes for the city. Chief Administrative Officer George Little said the City Council will be briefed Tuesday on a plan to allow trustee David Lenoir to collect current and past-due taxes for an annual fee of $1.25 million. The city recently informed Linebarger Goggan Blair & Sampson, a Texas-based delinquent tax collecting firm, that it does not plan to renew the company’s contract. …
….Linebarger has collected about $190 million for the city since 2004. Its contract expires Dec. 31 and the firm has come under criticism for years from council members, delinquent taxpayers and attorneys. The firm won a professional services contract — which did not require a bid process or council approval — from former mayor Willie Herenton in 2004…..The fees charged by Linebarger have drawn multiple lawsuits, including an ongoing federal class-action suit that could affect as many as 60,000 people who paid a 20 percent fee the company charged…..
