If you are one of the many Texas property owners struggling to pay your property taxes, you need to read this. While we are in the business of making property tax loans, we also believe we have a corporate social responsibility to educate our clients on all property tax payment plans available to them.
Of course there are many means to pay your property taxes such as bank loans, loans from friends/family, or through credit card payment. What many property owners don’t know is that property tax payment plans may be available from their respective tax assessor. The Texas tax code actually contains provisions that allow for property tax payment plans. Based on the current tax code, we listed the possible payment options below. While this might be a good option, you should heed caution in that tax assessors are not required to offer these payment plans, except for the installment plan for over 65 or disabled homeowners. It is really up the policy of the tax assessor as to which plans, if any, they offer. Additionally, if you enter into a payment plan for delinquent taxes, penalties and interest will continue to accrue at the normal rate, typically 48% in the 1st year.
Tax Assessor Property Tax Payment Plans
- Split Payment of Taxes (Sec. 31.03): Tax assessors may provide that a person who pays one half of the unit’s taxes before December 1 may pay the remaining one-half of the taxes without penalty or interest before July 1;
- Installment Payments of Certain Homestead Taxes (Sec. 31.031): Individuals who are disabled, or are at least 65 years of age and who are qualified for an exemption can pay their taxes in installments. However, they must at least pay 25% of the taxes before they become delinquent. The balance can be paid in three equal installments without any penalty or interest added. The first installment must be paid before April 1, the second installment before June 1, and the third installment before August 1;
- Installment Payment of Delinquent Taxes (Sec. 33.02): The collector for a taxing unit may enter an agreement with a person delinquent in the payment of the tax for payment of the tax, penalties, and interest in installments. The agreement must be in writing and may not extend for more than 36 months;
- Escrow Accounts (Sec. 31.072): The tax collector may enter into a contract with a property owner under which the property owner deposits money into an escrow account maintained by the collector to provide for the payment of property taxes.