Archive for the ‘Taxes’ Category

Splitting payments: a viable option

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

A study by the Office of Consumer Credit Commissioner reported that the most inexpensive way to pay your delinquent property taxes is by creating a payment plan with your city (or taxing unit).

One of those payment plan options is to split next year’s tax bill into two payments. One is due next week, the other isn’t due until the end of June. See our article, Split payments: are they for you? for more information on how to split your property tax payments.

If you simply can’t split payments, another option is to get a property tax loan.

It’s in the mail: tax bills are on the way

Published by Research Editor on October 1st, 2015 - in Taxes
Today is the day your tax assessor will mail your 2015 property tax bill, according to the state’s property tax calendar.

Will you be able to pay your bill?

If, like most people, there’s financial insecurity in your home or business, there’s no need to default on your property taxes and suffer the drastic penalties. Consider a property tax loan to cover your complete property tax obligations, including interest and fees.

Final installment due 7/31

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

Next week is the last day to pay the fourth installment on taxes, if you are paying installments as a disabled or senior citizen.

Curious about how to pay taxes in part instead of one lump sum? See our article, How to Pay Property Taxes in Installments.

Making partial payments throughout the year is one of the best ways to avoid penalties and late fees. However, not everyone qualifies. If you don’t qualify, consider a property tax loan instead.

12% interest added to your tax bill

Published by Research Editor on July 1st, 2015 - in Tax Penalties, Taxes

Today is the day. The day that can make or break you. Delinquent taxes incur 12% penalty today.

Twelve percent may not sound like a lot, but a $5,000 tax bill becomes $5,600 today. Six hundred more dollars.

If you are unable to pay your taxes, stop incurring his high interest rate by considering, among your options, a property tax loan.

Split payments: second payment due 6/30

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

Was your 2014 property tax bill split into two payments? If so, the second payment is due on or before June 30.

For more information on splitting your property tax payments, see our post, Split Payments: Is it for You?
For more on property tax loans, see Texas Property Tax Loans.

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.

Last day to protest taxes: April 30

Published by Research Editor on April 15th, 2015 - in Protest, Taxes

Last Day to Protest Property Taxes

 

Have a single-family residence? April 30 is the last day to protest your property taxes. If your taxes are too high, you have a constitutional 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.

Benefits of Property Taxes

Published by Research Editor on August 12th, 2013 - in Taxes

Property taxes are high, especially in Texas, where we have the 14th highest property tax rate in America.

But when you factor in your entire tax burden, including sales, property, and income taxes, Texas ranks 6th lowest in the nation.

You already know that property taxes bring revenue to the government, which pays for all sorts of benefits. But what other benefits are there to property taxes? Charles Gilliland, David Adame, and Michael Oberrender answered our question in an excellent article entitled “In Defense of the Property Tax.”

Stable Revenue

In the article, the authors state, “Because property values change slowly, the property tax base is more stable than income and sales taxes.” A stable revenue means a stable government, which is beneficial all around.

To compare, a study found that sales taxes varied by more than 40% between 2000 and 2011. It would be hard for a government to function well on such wildly varying revenue.

Lower Taxes

Even though property taxes are high, our overall tax burden is nearly the lowest in America. How can this be? The article quotes a report that suggests that, if sales tax were to completely replace property tax, the sales tax would have to be 25% just to maintain current revenue.

A lower sales tax–of 11%–would be possible, but only if the tax base was expanded by taxing everything not currently taxed, including food, medicine, and real estate.

Either way, a skyrocketing sales tax would offset any savings from eliminating a property tax.

Economic Growth

Furthermore, the “In Defense of the Property Tax” article examines a study by the Organization for Economic Co-operation and Development on 21 countries, which suggests that higher sales taxes would not benefit the economy. “Property taxes, and particularly recurrent taxes on immovable property, seem to be the most growth friendly,” the study concludes.

Beneficial for All

Even though property taxes are high, they benefit Texas by providing a stable revenue, keeping taxes lower, and sparking economic growth.

© 2013 FYP, LLC.