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Property Tax Funding Blog

Beware of Late Property Taxes in Texas

Posted by Matt Longhofer on Wed, Jun 06, 2012 @ 08:06 AM

If you are a Texas property owner with unpaid property taxes, you might be in for a surprise.  Many property owners do not know that penalties for late property taxes go up significantly on July 1st of the year they are due.  How much will your late property taxes increase on July 1st?  Most tax assessors in Texas assess a 23% penalty in this month alone.  The charge is based on a 3% penalty and interest charge plus a 20% collection fee.  For example, if you began the year with a $10,000 tax bill and you left your taxes unpaid, the July 1st penalty would increase your bill by $2,660.00.  Ouch, a $2,660.00 increase in one month alone is an enormous penalty!

How are Penalties for Late Property Taxes Established?late property taxes Texas

Texas Tax Code Section 33.01 and 33.07 establish the penalty and interest rates on delinquent real property taxes.  The code does allow the tax assessors some leeway in the amount charged for collections fees, but just about every tax assessor in Texas imposes the maximum 20%.  Furthermore, once your fees are assessed, chances of you getting them waived or reduced are extremely slim.  A few more facts about late property taxes penalties:

  • Failure to receive a tax statement does not relieve the property owner of the tax, penalty or interest liability.
  • The Tax Assessor/Collector does not have legal authority to forgive or waive any penalty or interest charges.
  • Payments by mail are credited according to the U.S. Postmark (not meters). Those bearing postmarks past deadlines will incur full penalty and interest charges.

What to Do About Late Property Taxes?

My advice is to get them paid and to do it now.  If you don’t have the money at hand, you might try one of the following sources:

  • Borrow from a friend/family member – might get a good rate, but often difficult to do.
  • Get a bank loan – will be a lower cost of funds if you have good credit.
  • Pay with a credit card - most credit cards have very high interest rates, but still lower than the tax assessor penalties. 
  • Get a Property Tax Loan – can be great financing source with low rates and easy qualifications.

We’ve helped thousands of Texas property owners with low costs property tax loans.  With loan rates at four year lows, it is a perfect time to consider this financing source for your late property taxes.  Qualifications are easy, even for those with bad credit, and the entire process takes just a few days.  To learn more about property tax loans for unpaid property taxes, visit our website at www.propertytaxfunding.com.  

Topics: past due property tax

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