Date: April 02, 2012

To:

All County Tax Assessor-Collectors

Subject:

Mechanics Lien Administrative Fee

PURPOSE

To notify you of the department's policy concerning the Mechanics Lien Administrative Fee.

DETAILS

Property Code, Section 70.006 (a) requires a mechanic to submit a $25 administrative fee to the county tax assessor-collector in the county in which the repairs were made. The administrative fee is to cover the cost of the notifications county tax assessor-collectors must send to the owner and lienholder of record within 15 business days as required under Property Code, Section 70.006 (h).

The department has received complaints that some county tax offices require an additional $25 fee if a transaction is rejected either by your office or the department. Unless it is necessary to resend the notifications due to incorrect information provided by the mechanic, such as owner, lienholder or vehicle information, an additional $25 fee should not be collected.

COUNTY ACTION

Only collect the mechanic lien $25 administrative fee once, unless new or additional notifications are required. As a reminder the $25 administrative fee does not apply to licensed franchise dealers filing a mechanic lien as specified in Property Code, Section 70.006 (a).

CONTACT

If you have any questions, please contact your local TxDMV Regional Service Center.