Archive for May, 2015

Disabled and Senior Citizens: Installment deadline

Published by Research Editor on May 23rd, 2015 - in Taxes

Are you paying your property taxes in installments? Your third payment is due next week. Send in 1/4 of your 2015 property tax bill.

Remember, you can always pay extra, but don’t get behind. Failing to pay the full 1/4 of your taxes will earn you interest and a 6% penalty on the unpaid amount.

If you are having difficulty paying your installments, consider a property tax loan among your options.

Last day to protest property taxes: May 31

Published by Research Editor on May 20th, 2015 - in Protest, Taxes

May 31 is the last day to protest your taxes for your non-single-family residence property. If your taxes are too high, you have a right to protest.

To get your protest started, review our protest series, which will take you through the four steps of protest:

  1. Filing notice
  2. Preparing for your hearing
  3. The hearing
  4. Dissatisfied? Next steps.

If your property taxes are fair, but you’re not in a position to pay them, consider a property tax loan.

Property taxes overdue? Read this.

Published by Research Editor on May 13th, 2015 - in Taxes

A lesgislative report* looked at the main options available to taxpayers and compared the financial impact of four ways to deal with your overdue property taxes:

  • Stay delinquent
  • Credit card payments
  • Payment plan with taxing unit
  • Property tax loan

Let’s say Sammy Husson owed $8,000 in property taxes on his home and does not have the cash to pay. What are his options?

Delinquency

Sammy could choose to just not pay the taxes, which would pile up so much in fees and interest that the bill would very quickly double. This is not a good choice for him, for many reasons, least of all the end result would cost him $16,608-17,088.

Credit card

If Sammy happened to have an $8,000 credit card, he could simply charge his taxes to his credit card. Assuming he made enough payments to pay it off within 5 years, the cost of putting his property taxes on the credit card would end up being between $13,339 and $17,653. Better than delinquency.

Payment plan with taxing unit

Well, truth be told, Sammy does not have an $8,000 line of credit. So he turns to his county and asks for installment plans. If he qualifies, this is an excellent option and will cost him, in the end, between $10,012 and $12,652.

Property tax loan

However, Sammy owes the property taxes on a home he inherited from his mother. It’s not the home he lives in, so it doesn’t qualify for installment plans.

So he turns to a property tax lender, which offers him a flexible payment solution over the next five years. At the end of it, the OCCC estimates he will have paid between $13,156 and $17,511.

 

 

*prepared by the Office of Consumer Credit Commisioner for the Finance Commission of Texas. See page 8.

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