What Is the Significance of July 1st?
Texas delinquent property tax laws dictate that, if you haven’t paid off your full tax bill, including the delinquent amount plus interest fees and penalties, you’ll be charged a giant property tax collection penalty of 22% on July 1st. That’s on top of everything else, meaning that the total increase by the time July comes around is 41.6%. Without a doubt, this is the biggest penalty of the year. For a visual on this hike, check out our Property Tax Penalty Chart.
How Did You Get to This Point?
If you didn’t pay your tax bill by January 31st, you became delinquent as of February 1st. After that, the Texas property tax fees started to pile up — first at a rate of 2% every month that you were still past due. That all leads up to the big penalty on July 1st, and after that, the tax collector will continue to tack on a 1% fee on the unpaid balance. Those numbers add up quickly, but our firm belief is that property tax delinquency is nothing to fear, especially if you seek out delinquent property tax help in time..
What Should You Know About Texas Delinquent Property Tax Laws?
You probably know that the property tax rate in Texas is quite high. However, there are many other factors related to Texas delinquent property tax laws that you should know. This will help you understand what you’re up against when facing that July 1st penalty.
Your exact tax rate is determined by your local taxing authority, usually by the office of a city or county treasurer. An assessor evaluates the property value in an appraisal district. For example, the assessor in the Harris County appraisal district would determine the overall worth of the property in Harris County. The tax assessor’s appraised value then determines the final rate on your tax bill, which may arrive on or after October 1st. Then, your property taxes are due on January 31st of the following year.
If you don’t pay your bill by January 31st, you’re in delinquency. There are some forms of delinquent property tax help you can seek out before that date, such as a homestead exemption or an appeal to the appraisal review board. But, generally, if you missed the deadline, the Texas property tax fees will start to accrue. The Texas Comptroller outlines the details of these penalties online.
Texas Delinquent Property Tax Laws: After Entering Delinquency
As mentioned, if you did not secure an exemption and didn’t pay your tax bill, you’re delinquent as of February 1st. Up to the big penalty on July 1st, and potentially after, Texas delinquent property tax laws dictate that the following will happen:
- Any time during delinquency, the taxing authority can place a tax lien on your property.
- Once the tax lien is secured, the authorities can decide to file for foreclosure in court.
- The court may grant a tax deed to the governing body, meaning it can attempt to sell your foreclosed property at auction (or possess it if there is no buyer).
- You will receive an official notice before any sale of your property takes place.
- Paying off the proper amount of overdue taxes (as determined by the court) at any time releases the tax lien and halts the foreclosure process.
Additionally, Texas delinquent property tax laws allow the county to alter any official deadlines in response to an emergency. For instance, as of this writing, counties have this option due to COVID-19. However, it is crucial to check on this information with your local taxing authorities.
What is the Fastest Way to Get Delinquent Property Tax Help Before July 1st?
If you don’t pay your overdue taxes by the time the penalty hits on July 1st (or after), you’ll simply continue to accrue Texas property tax fees, penalties and interest. The tax lien on your property could quickly spell foreclosure. So, what is the best way to deal with it fast?
Among the options out there, tax loans are likely the best and fastest way to tidy up your debts.
How Tax Loans Can Help
To avoid the full weight of penalties associated with property tax collection, tax loans will:
- Save you on attorney fees.
- Keep you out of court.
- Buy you time to pay back your debts on a schedule that works for you.
- Help you avoid any unforgiving Texas delinquent property tax laws.
If you need delinquent property tax help, look no further than Tax Ease.