The Cobb County School District on Tuesday said it has filed a lawsuit against Cobb County government for what it calls “a money-grab” over administrative fees levied to collect property and sales taxes for schools.
In a press release issued Tuesday morning, the district said that over the last 15 years, it has been billed more than $130 million in administrative fees to collect property taxes that are then turned over to the school district.
This year, that total is $13 million, and the district claimed in the release for fiscal year 2027—which begins on July 1—the county is charging the district $20 million.
That’s due to an increase in what the county charges the school district in those collection fees, from 1.6 percent to 2.5 percent of the total taxes collected—from property taxes and Special-Purpose Local-Option Sales Taxes (SPLOST).
“This lawsuit is about the hundreds of teachers and thousands of students who would be affected. Every Cobb homeowner, business owner, parent, grandparent, and student benefits from a strong public education,” Cobb Board of Education vice chairman David Chastain of Post 4 in Northeast Cobb said in the district release.
“The Commission is trying to take millions of dollars from our classrooms for a tax increase, disguised as ‘administrative fees.’ Cobb’s parents want smaller class sizes, not more ‘fees.’ ”
The district’s press release—which didn’t state an author’s name—alleges that the county is guilty of “a money-grab, from classrooms, for absolutely no reason, other than the presumed hope of ending the senior school tax exemption or forcing a tax increase on Cobb homeowners. Both of which are strongly opposed by the District.”
The lawsuit, which was filed in Cobb Superior Court, named Cobb County and Cobb Tax Commissioner Carla Jackson as defendants. (You can read the lawsuit by clicking here.)
But the ire of the district’s statements, and claims in the lawsuit, are aimed at the Cobb Board of Commissioners.
“The collection fee is both unreasonable and unlawful. No reasonable person would believe the County incurs over $20,000,000 in annual expenses just to collect school taxes,” the district lawsuit states.
“And more importantly, the County lacks legal authority to charge the collection fee in the first instance.”
The lawsuit states that a 2011 Georgia law, Local Act 240, requires a county tax commissioner “to remit all educational taxes collected to the Cobb County Board of Education without charging a collection fee.
“But the County has unilaterally decided that Local Act 240 is invalid and has refused to comply with its mandate.”
The lawsuit further states that Cobb improperly adopted a home rule ordinance from 2011-2021 to circumvent the new law and “unlawfully” charged the school district a 1.6 percent collection fee, even after that provision expired.
Since then, the lawsuit alleges, the school district’s fees have increased from $9.4 million in fiscal 2022 to the present $13 million.
“Despite receiving more than $130,000,000 in collection fees since 2011, the County remains unsatisfied,” the lawsuit states.
A discussion between the school district and the county over the fees was to have taken place in February, with the county seeking an increase in the tax-collection fee to 2.5 percent, according to the lawsuit.
But the the lawsuit said that Cobb Commission Chairwoman Lisa Cupid, who asked for the meeting with school district leaders, tabled that discussion, saying it was premature, and no further talks were held on the subject.
In May, the Cobb school adopted a fiscal year 2027 budget of nearly $1.9 billion.
On May 29, the lawsuit states, Cupid sent a letter to Cobb superintendent Chris Ragsdale and school board chairman Randy Scamihorn saying that Cobb would be imposing a 2.5 percent collection fee for school taxes, starting on July 1.
In that letter, which is included in the school district’s legal findings (you can read it here), Cupid wrote that there “is no valid legal local legislation designating a commission rate for the collection of school taxes. Without such local legislation, the state law rate of 2.5 percent is applicable.”
Cupid concluded her letter by saying that “there has been no further discussion on this issue since the February meeting and, as Cobb County enters its budget process, it is appropriate to make the change.”
The district’s lawsuit states that “over the next five years, the proposed increase would allow the Board of Commissioners to charge over $100,000,000 in fees for collecting school taxes.”
Cobb government spokeswoman Shelly Weidner told East Cobb News that county officials are reviewing the lawsuit with legal counsel and issued the following statement:
“The County’s position regarding the school tax collection commission was outlined in the May 29 letter provided to the School District and referenced in the lawsuit. This matter involves the interpretation and application of state law governing the collection of school taxes, and we believe it is appropriate for the courts to provide clarity on the issue.
“Because this matter is now pending litigation, we will have no further comment on the specifics of the case at this time.”
The Cobb school district said the $130 million sum it’s paid in property-tax collection fees since 2011 could go to fund the salaries and benefits of 130 teachers.
“Our bottom line is simple: Cobb’s students are already funded less than their peers in most neighboring counties,” the district statement said.
“We will protect the investment parents and grandparents have made to live and raise their families in Cobb.”
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- Race-car driver from Walton HS honored as ‘positive athlete’
- Walton student wins award at pre-college STEM competition
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As previously stated, by our duly elected Commissioner, there is no current local law in place that requires otherwise, therefore the state law that specifies a standard 2 1/2 % commission applies :
Georgia Code § 48-5-404 (2024) – Collection of county school taxes
(a) The tax commissioner or tax collector shall continue to collect unpaid county school taxes and all county school taxes levied pursuant to Article VIII, Section VI, Paragraph I of the Constitution of this state and shall be entitled to a commission of 2 1/2 percent for collecting the taxes. The tax commissioner or tax collector shall pay over to the county board of education all moneys collected for the schools on the same schedule of distributions as is provided for counties in Code Section 48-5-141. In those counties where the tax collector or tax commissioner is on a salary basis, the fees provided for in this Code section shall be collected by the tax commissioner or tax collector and paid over to the proper governing authority of the county.