Property Tax Funding Blog

Penalties and Interest for Texas Past Due Property Taxes

If you are one of the many Texas property owners that received a delinquent property tax notice, you were probably shocked when you opened your notice and discovered the applied penalties.  With bank savings rates hovering below 1%, you might wonder how tax assessors justify charging penalties of up to 48% in the first year.  While you might think it is a conspiracy to funnel great income to the taxing units, it’s really nothing more than the tax assessors following the tax code.  Texas Tax Code Section 33.01 and 33.07 establish the penalty and interest rates on delinquent real property taxes.  The chart below lists the penalties, interest, and collection costs for Dallas County. 

Over the past year, I’ve written more than a few blogs about the benefits of property tax loans.  Typically a property tax loan is a great option when compared to the exorbitant 44% 1^st year penalties charged by the tax assessors.   Despite the benefits that tax loans offer property owners, there are in fact certain situations that do not justify a tax loan.  We frequently speak to property owners and educate them that a tax loan may not be their best option.  Don’t get me wrong, we are in the tax loan business; however, running a good business is more than just about doing all the loans you can.  Our approach is to understand the situation and recommend the best course of action for the property owner.   I’ve listed a few common situations when we would not recommend a property tax loan. 

Below is a property tax guide to help Denton County residents compare their 2010 property tax rates for both city and school taxes to other cities and schools throughout Denton County. 

Below is a property tax guide to help Collin County residents compare their 2010 property tax rates for both city and school taxes to other cities and schools throughout Collin County. 

School districts all over Texas are dealing with severe state funding cuts.   State legislators are looking at potentially slicing $10 billion in education funding in the next biennium to close the budget gap. Districts throughout the state are setting actions plans in place to deal with this potential loss of funding.

Can I get a Property Tax Loan before my Property Taxes are Past Due? 

We receive this question often from the time tax bills are sent until they are due.  The answer to this question is not a simple yes or no, and it depends on several factors.   Foremost, if you have past due property taxes, your property is likely eligible for a property tax loan now.   For properties with taxes not currently past due, our ability to offer a property tax loan is based on the language contained in the Texas Tax Code, Section 32.06, which contains the following language regarding non delinquent taxes:

Dallas County Changes Fees for Credit Card Payment of Property Taxes

In response to the property tax revenue shortfall, the Dallas County Tax Assessor has implemented changes to their property tax payment policy as it relates to credit card payments.  In the past, Dallas County property owners could pay their property taxes using a Visa, MasterCard, or Discover Card without a credit card convenience fee.  Many property owners found this to be a convenient payment method and an easy way to accumulate a large amount of points, miles, or credit card rewards.

Problems with Collin County Tax Payments

According to a story published by the Dallas Morning News on October 28, 2010, the Collin County tax office had a snafu with the mailing of their 2010 property tax bills.    

Texas Gives Property Tax Exemptions on Properties with Renewable Energy Systems