Can I get a Property Tax Loan before my Taxes are Delinquent?
By mid November most Texas Counties will have completed their 2011 property tax assessment and sent out property tax bills. Taxes are typically due on are before January 31st and delinquent on February 1st.
Property owner’s that are considering financing their 2011 taxes need to keep in mind that they cannot not close a property tax loan until such time as their property taxes are delinquent on February 1st. This limitation is set-forth in Texas Property Tax Code Section 32.06. There are however a couple of exceptions that allow some property owner’s to close a loan before taxes become delinquent. They are as follows:
1) The property is owned free and clear and not encumbered by a mortgage.
2) The property has unpaid taxes from previous years.
3) The property has an open tax loan for previous years taxes.
If you want to finance your 2011 taxes and do not meet one of the above exceptions, it does not mean that a property tax loan is not a viable option for you. However, you will have to close your loan on February 1st and pay the 7% penalty. The good news..bad news is that the 7% penalty can be included in your tax loan. It is also a not a good idea to wait beyond February to close your tax loan. This is because the 7% penalty is just the first of many Tax Collector charges that total 44% of your unpaid tax bill if your taxes remain unpaid for the entire year.
About Post Author
