Property Taxes

In Texas, January 31 is the standard deadline for when payment of property taxinvoices, usually sent in October or November, is due. However, the Texas Comptroller of Public Accounts office, who oversees the property tax process, provides information on how taxes may be paid by homeowners. Some rules are set while others are just guidelines for the local county appraisal districts. Check with yourlocal appraisal district to see if they follow the suggested guidelines.

Probably the most frequent question is whether taxes can be paid on an installment plan instead of all at once. This is up to each county appraisal district. State law allows taxing units, at their discretion, to authorize tax collectors to accept one-half of a taxpayer's taxes by November 30 and the remainder by June 30 without paying penalty and interest. Not all taxing units offer this option. Tax collectors also may choose to collect partial payments, payments by credit card, or escrow payments. Such payments do not forestall any penalty and interest on the unpaid portions.

If payments are made on an installment plan, or paid late, the tax collector adds a 6 percent penalty and 1 percent interest in February. Penalty continues to accrue at 1 percent per month until July 1. On July 1, the penalty is 12 percent. Interest continues to accrue at 1 percent per month until paid. For example, on July 1, unpaid taxes would have accrued a total of 18 percent penalty and interest (12 percent penalty and 6 percent interest). To this amount, a taxing unit also may add a penalty of up to 20 percent for attorney fees.

Unfortunately, just because the county appraisal district may not get your tax bill to you in a timely fashion, that doesn't mean you don't have to pay in a timely fashion. State law provides that failing to send or receive a tax bill does not affect the validity of the tax, penalty, or interest due by an individual, the tax's delinquency date, the existence of a tax lien, or any procedure the taxing unit institutes to collect the tax. Property owners know that property taxes are due each year and should check if they do not receive a tax bill. If January 31 is approaching and you have not received a tax bill, contact your local county appraisal district to make certain they have your correct information on file and to determine the amount you owe.

However, the law does allow you at least 21 days to pay after a tax bill is mailed to you. If your bill is mailed after January 10, the delinquency date is postponed. You have until the first day of the next month that will provide at least 21 days for paying the bill. So, if the taxing unit mails your tax bill on January 15, your taxes don't become delinquent until March 1. The delinquency date is printed on the bill.

If you feel your property's assessed value is too high, it's your right to file a formal protest. You can protest your property value yourself, or hire a professional consultantto handle your protest for you. Either way, there's no reason to pay more property taxes than is required by law.

Patrick C. O'Connor has been president of O'Connor & Associates since 1983 and is a recipient of the prestigious Mai designation from the Appraisal Institute.