Are Texas property taxes too high? The answer to this question depends on your point of view. From the homeowner’s perspective, it is undoubtedly the case that they are paying a seemingly unnecessary amount in property taxes. State, county, and municipal authorities see the situation differently. These two irreconcilable viewpoints have held the situation in a stalemate for decades. The public demands relief, but the authorities are slow or completely unwilling to provide it.
It is undeniable that Texas homeowners pay some of the highest property taxes in the country - around one-third higher than the national average. This is indeed a high price to pay, but is it too high? Again, the answer depends on your point of view. It is also a fact that Texas’ public treasuries at all levels of government are heavily dependent on property tax for revenue. The reason for this is that the state’s levels and rates of taxation in other areas are relatively low compared to the national standard. Texan taxpayers pay more property tax but no state income tax and some of the lowest sales taxes in the country. Texas authorities, especially at the local level, have to make up the shortfall somewhere, and so property tax is vital for them. They argue that the amounts property owners pay in property taxes are offset by the savings they make elsewhere. It is this heavy dependence on property taxes that makes the government at all levels so reluctant to reduce its rates.
Property values in Texas have been rising consistently since 2011. By June 2021, the median house price had risen by an astonishing 19.3% year-over-year against 2020 mid-year values, to a record level of $298,013. Since property taxes are calculated as a percentage of property values, the rise in home prices leads to a rise in taxes. As a result, homeowners are paying more in property taxes now than they were in the previous year. The only way to change this situation, other than decreasing property values, which would not be a good solution for anyone, is to reduce the tax rates. However, this is unlikely to happen because of the importance of property taxes for local government coffers.
Property owners cannot rely on state government for effective relief from property taxes, because rates are set at the local level. For reasons explained above, local governments will not reduce the rates of taxation because property taxes are so vital to their income. The importance of property taxes is also the reason why county and municipal authorities levy such hefty penalties on late payment. The best thing to do is to pay them on time to avoid penalties, which will make property tax bills much more manageable. If a property owner does miss the deadlines and the penalties become a problem, property tax loan lenders can offer an affordable solution.
Property tax loans from American Finance & Investment Co., Inc. (AFIC) can provide fast, affordable relief from the often unmanageable demands of county and city tax offices throughout the state.
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.
Rates as Low as 8.0% (8.51% APR*) $25,000 loan,
$750 in Closing Costs, 120 Monthly Payments of $303.32
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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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