Overview
Due to the hefty penalties associated with unpaid property taxes in Texas, it’s in the best interest of property owners to find ways of offsetting their overdue property taxes. Since property taxes can lead to foreclosure, what are your options when you can’t meet your tax payment obligations partly or entirely?
Can You Get a Texas Property Tax Payment Plan?
YES! There are several options available.
However, it’s important to remember that tax assessors aren’t obligated to offer property owners payment plans. While disabled property owners and elderly property owners (aged 65 and above) can expect payment plans, it’s usually up to tax assessors to decide what kind of installment payment they offer, if any, and how they offer it. What’s more, payment plans offered for delinquent taxes don’t stop penalties and interest from accruing normally.
Property Tax Payment Plans in Texas as Per the Texas Property Tax Code
I. Split payment
As per Texas Property Tax Code 31.03, tax assessors can offer payment plans to property owners who pay at least 50% of the respective unit’s tax before 1st December. The split payment plan gives property owners a chance to repay the remaining 50% of taxes without incurring additional interest and penalties provided they finish paying before 1st July.
II. Instalment payment for certain homestead taxes
As per Texas Property Tax Code 31.031, elderly individuals (aged 65 or more) and disabled individuals who qualify for property tax exemptions under Sec 11.13c can be given property tax payment plans. However, there are some requirements that such individuals must meet.
For instance, they should have paid 25% or more of their property taxes before delinquency. Repayment plans are also set at three equal installments, the first one being before 1st April. The 2nd & 3rd installments must be paid before 1st June and 1st August, respectively. However, no penalties or interest accumulate in the process.
Installment payment for certain homestead taxes also apply to disabled veterans and unmarried surviving spouses of disabled veterans. However, they must first qualify for property tax exemption under sections 11.132 or 11.2.
III. Payment plans for delinquent taxes
Texas Property Tax Code 33.02 gives collectors of taxing units the power to enter into agreements with persons delinquent in paying tax and resulting penalties and interest.
Tax payment plans under this agreement must meet certain criteria. For instance, payment plans can only be granted to individuals who haven’t gotten into such agreements in the past two years. Also, the payment plan has to be in writing and provide monthly installments for at least a year if the property in question qualifies as a residence homestead for the individual entering into the agreement. Payment plans should also be 36 months or less, and property owners should have qualified for exemption as per Section 11.13.
IV. Escrow accounts plan
As per Section 31.072, tax collectors can get into contracts with property owners where property owners deposit some money into escrow accounts managed by tax collectors for the sole purpose of providing for property tax payments.
Contracts must be active before 1st October of the year before a tax year for which an account is opened. Collectors can agree to create one account for multiple properties owned by the same individual at an individual’s request.
Tax payment plans under Section 31.072 require property owners to be making monthly deposits to an escrow account until deposits are able to take care of the taxes or until tax bills for properties are prepared. Contracts should also make provision for deposits that aren’t less than estimated taxes.
Can you get a Texas property tax payment plan? Yes! However, if you are overdue on property taxes, the above payment plans may not be suitable. If that’s the case, you can pursue other ways of dealing with overdue property taxes in Texas.
Other Options for Paying Property Taxes in Texas
It is possible to get your overdue property taxes reduced or completely written off if you qualify for tax exemptions.
I. Property Tax Exemptions in Texas
If you don’t qualify for the above payment plans, you can consider tax exemptions. Texas has total and partial property tax exemptions for residence homestead, disabled persons, elderly individuals (aged 65 and above), veterans, property owners of uninhabitable property, and property owners of certain types of houses i.e., manufactured & cooperative housing.
Texas Property Tax Code 11 extensively discusses tax exemptions and requirements for qualifying for those exemptions.
Important: Tax exemptions aren’t guaranteed. You can be denied an exemption even if you think you deserve one. Appealing may not help either. Penalties and interest will keep increasing if you don’t get an exemption or a suitable payment plan.
If you have due property taxes, you can find that these payment options are unfavorable, especially if you are looking for a low monthly payment. Are there any other options?
II. Property Tax Loans in Texas
Are property tax loans better than property tax payment plans discussed above or property tax exemptions you aren’t likely to secure?
Provided you choose a property tax loan provider that is legitimate and offers quick loans at an affordable rate, it is better to take a loan and offset your overdue taxes. As mentioned above, property taxes in Texas accumulate penalties and interest very fast. You can easily find yourself paying over 47% in penalties and interest within the first year of failing to meet your tax obligations.
The best Texas property tax loan providers offer quick loans and affordable repayment plans that are way better than relying on tax exemptions and repayment plans provided for by law that are rarely forthcoming.
Texas Property tax loans are better than tax payment plans and elusive exemptions if you borrow from the best property tax loan provider like Property Tax Loan Pros with low monthly repayments, flexible property tax payment plans, ZERO application fees, a streamlined online application process, quick loan approvals and funds disbursement. CALL: 866-531-7678, EMAIL: info@propertytaxloanpros.com.
