Delinquent Property Taxes in Texas – A Uniquely Local Issue
Texas property owners owe millions of dollars in delinquent property taxes, penalties and interest. In the Lone Star state, property taxes are assessed, collected and spent locally to finance the services we all depend on – public schools, community hospitals, police and fire protection, utility systems and more.
There is no state or local personal income tax in Texas. The billions in tax revenues the state brings in, primarily through its sales and use tax, aren’t spent at the local level (the one exception is supplemental spending for K-12 public education, which is mainly funded by and receives the majority of property tax revenues). Taxing units handle delinquent property taxes in Texas aggressively, with steep penalties and interest, because with no other sources of funding, lost revenues deeply affect local communities.
How Long Can You Be Delinquent on Property Taxes in Texas?
If you owe delinquent property taxes, chances are one of your main concerns is the threat of losing your property, but don’t despair. While it’s true that the end of the road of property tax delinquency is foreclosure, you get multiple chances to save your property – even after a tax sale has gone through, giving you time to get help paying delinquent real estate taxes.
How long you can be delinquent on property taxes depends on the county where your property is located. Although typically foreclosure proceedings won’t begin for at least four months, by law, a tax collector or assessor can foreclose any time property taxes are delinquent, with only a 21-day notice of the tax sale required.
Do Delinquent Property Taxes Affect Credit?
If you’re a Texan with a delinquent property tax bill, you may be wondering, “What do delinquent taxes mean for my credit score?”.
It wasn’t that long ago that a property tax lien on a credit report would devastate your credit right up there with foreclosure or bankruptcy. Fortunately, in 2018 the three main credit bureaus, Equifax, Experian and TransUnion, removed tax lien data from credit reports. However, delinquent property taxes can still negatively affect your finances and your ability to sell the property.
Where Can I Find Help With Delinquent Property Taxes?
Many Texas taxpayers need help with delinquent property taxes. With few exceptions, payment in full is the only way to stop the accruing penalties, interest charges and legal actions (and associated legal fees) that come with delinquency.
If you need assistance to make that payment, the best delinquent property tax help available is a property tax loan. With a property tax loan from a top Texas lender like Tax Ease, you can pay delinquent property taxes in full with no credit check or additional fees. Plus, you can choose repayment terms that work for your budget.