City says county clerk failed to collect $7M in fees for months

Yahoo

30-01-2025

MEMPHIS, Tenn. — Memphis city leaders say for seven months, the city's auto-fee or wheel tax increase was never collected, potentially creating a $7 million shortfall in the city's budget.
The Memphis City Council voted to double car registration fees, from $30 to $60 as of July 1 last year. But if you live in the city of Memphis you may have noticed there was not an increase.
Some Memphis leaders say Shelby County Clerk Wanda Halbert's office is to blame, and they say not collecting those fees could lead to other problems. It could be called the latest chapter in the ongoing issues facing Halbert.
Councilwoman Jerri Green says Memphians who renewed their car registration since July of last year were undercharged because of a government error.
'That's what's frustrating. This isn't political. It's not about pointing fingers. I want people to do their jobs, because if they don't, then it has a direct impact on individuals throughout our community.'
She says it happened to her, as well.
'I'm hearing from people. They're not seeing it on their bills. So we continue to have these conversations myself and the administration with Clerk Halbert's office throughout the fall, and we were advised that bills would be changed in January. Now I still think that was too long, but it was a date certain,' she said. 'And then, when I went to pay my own bill on January 27, it wasn't doubled.'
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Now some city leaders fear those additional fees could have a domino effect on city services and already financially strapped agencies such as MATA.
'There are major budget holes with MATA, and we have to keep those buses running so people can get to their jobs, so our disabled citizens can enjoy life,' she said. 'So I was hoping to be able to come back with an additional resolution this year during budget and dedicate some of that funding towards public transportation.'
Green says she's been told the clerk has reached out to Mayor Paul Young and his administration, and is planning to start collection in February.
'I've been hearing that for months, and so we'll just have to wait and see,' Green said. 'But again, this revenue we're not going to recoup. So it's a problem. And now a new hole in the budget we're gonna have to solve this year.'
This isn't the first time Halbert's office has allegedly failed to collect a fee increase.
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Last year, the Shelby County Commission complained that Halbert didn't take into account a wheel tax fee increase in the county that the commission had approved months earlier. Commissioners said the shortfall put the county's budget in jeopardy for the year.
Controversy over alleged inaccurate collection and reporting is part of what led some local leaders to push for an audit of Halbert's office, and an attempt to oust her from office.
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