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Property Tax Funding Blog

Tax Loans Stop Tax Assessor Penalties

Posted by Joe Thompson on Wed, Jan 01, 2014 @ 08:01 AM

tax loans texasTax Loans Stop Tax Assessor Penalties

Since Texas has no income tax, much of the funding for state and local government comes from property tax. With this in mind, property taxes are serious business here. Not only can the combined bill for property, school, and utility taxes add up to 2 percent of more or a home's value, but paying late carries serious consequences.  Luckily, when a tax payer finds he is unable to pay his tax bill, tax loans are available that can save him from the sky high penalties and interest.

Texas property taxes are subject to steep penalties and tax loans help property owners avoid them. If the bill isn't paid by January 31st, the tax collector increases the bill by 7 percent, thanks to a 6 percent penalty and 1 percent interest charge. Penalties and interest continue to grow by 2 percent each month until the tax bill is six months late. Then, on July 1st the tax collector’s attorney imposes a collection penalty fee of up to 20 percent on top of the previous penalties and interest. 

By the end of the year, between penalties, collection fees and interest, the extra costs could be as much as 48 percent of the initial tax bill. If a tax payer originally owed $5,000, he would end up having to pay $7,380 after all penalties,  interest, and collection fees.  That’s an increase of $2,380.

Save Money with a Tax Loan

Tax loans are a better way. Instead of paying property taxes late, a property owner can work with a tax lender that specializes in tax loans. The tax lender pays his tax bill for him, saving him from having to pay penalties to the tax collector. The tax lender then sets up a repayment plan with the property owner.  The qualifications are easy and loans can normally be closed in just a few days.  The ease and speed of the loans allows the property owner to preserve their equity and prevent possible foreclosure by the county. 

Paying back tax loans is usually relatively easy to do, since most property owners get anywhere from three to ten years to do it.  Even with the interest, tax loans also save property owners real money. It's not uncommon for a property owner to save 60 percent by taking out a tax loan versus paying penalties to his tax collector. 

Property Tax Funding Can Help

For property owners that need help with their property taxes, consider contacting Property Tax Funding.  Established in 2008, Property Tax Funding is dedicated to providing low cost tax repayment plans for Texas property owners.  To get the process started call 877-776-7391 or apply online for a tax loan.

Topics: Texas Tax Loan, Texas tax loans, tax loans in Texas, tax loan, tax loans, tax loan texas, tax loans texas, tax loan in texas

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