Did the July property tax penalty shock you when you received the notice? The collection fees, penalties, and interest on property taxes will only grow and can be around 48% of your original property tax bill in the first year alone. If you are unable to pay your property tax account on the due date, it is advisable to make alternative arrangements well before January 31, whether with your bank, local tax authorities, or a property tax lender such as American Finance & Investment Company, Inc. (AFIC). You received a big property tax penalty, but what now?
Commercial and personal property owners must pay their property tax on January 31st of each year, and your taxes are considered late on February 1st when the authorities start charging penalties and interest on the outstanding property tax amount.
The biggest property tax penalty is implemented on July 1st with two additional increases, including an up to 20% penalty specifically for attorney fees. Avoid this penalty at all costs. It is better to pay your property tax bill on time, or contract with one of the leading property tax loan companies, AFIC, to do so on your behalf.
Collecting delinquent taxes places an additional burden on local authorities, and the cost is recovered from taxpayers. Why is the July property tax penalty so high? There are two main reasons.
Besides the other monthly penalties you pay for delinquent property taxes, there are two July increases in the Texas Tax Code, as explained by the Texas Comptroller of Public Accounts. It includes an accrued 12% that stops increasing in penalties and a collection penalty of up to 20% of total outstanding charges on July 1st.
The July 1st collection penalty that accrues up to 20% is set aside solely to cover attorney fees. Collecting outstanding property taxes is costly, and other than the lawyer’s fees, there are also court costs and other legal expenses if a suit is filed against a property owner.
Unfortunately, the July penalty is not the end of your challenges as a delinquent taxpayer. The penalties, interest, and collection fees keep increasing, and you might have your own legal fees to cover as the collection penalty’s purpose is to pay a law firm to pursue collection action against you.
Don’t be discouraged, you can manage the high property tax penalties you were hit with. A reputable property tax loan service provider that can help you immediately, as the debt should be cleared as soon as possible to cut down on penalties, interests, and fees.
You know the Texas property tax penalties are increasing, but you are worried about contacting a property tax loan company because you think the loan repayment amount will be huge. AFIC can provide you with an instant quote by completing the form on our homepage. For qualifying properties, we can help you pay off your delinquent taxes and offer you the following benefits:
We pride ourselves on finding solutions to suit the unique needs of our clients. If you would like to discuss our property tax loans, please contact our experienced team at AFIC today.
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YOUR TAX OFFICE MAY OFFER DELINQUENT TAX INSTALLMENT PLANS THAT MAY BE LESS COSTLY TO YOU. YOU CAN REQUEST INFORMATION ABOUT THE AVAILABILITY OF THESE PLANS FROM THE TAX OFFICE.
If you are over 64 or disabled, don’t get a property tax loan, contact your tax office about a deferral.
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