Not everyone can pay a year’s worth of property taxes all at once. For citizens 65 or older, an alternative to a property tax loan is the option to pay property taxes in installments.

Paying in installments splits your property tax bill into four smaller bills, due throughout the year.

To qualify, you must:

• be age 65 or older
• apply for senior citizen homestead exemption
• indicate on your first payment that you are paying in installments

There is no special form to fill out, no extra paperwork. If you’ve already applied for the $10,000 homestead exemption, you don’t need to reapply. Simply send in ¼ of the taxes due with a note that you are paying in installments.

The four installments are due before:

1. February 1
2. April 1
3. June 1
4. August 1

Each installment should be ¼ of the taxes you owe.

Keep up with the installment payments. If you miss an installment, there is a 12% penalty, plus 1% per delinquent month added to the installment amount.

A bogus email has been circulating among Texas voters regarding the upcoming May 12 elections. The email claims the elections will include a proposition for a statewide constitutional amendment involving property tax exemptions.

However, the May 12 elections are local elections and do not involve any such constitutional amendment.

The Secretary of State advises voters to disregard the email. Don’t forward it: doing so will spread false information.

If you would like accurate information about the May 12 elections, contact your local election officials (your county’s website is a great place to start) or go to www.votetexas.gov.

This important loan disclosure document is similar to one you should receive if you are entering into a property tax loan. It covers several vital reminders:

Superior Loan

A property tax loan is a superior loan. If you don’t pay your property tax loan back, your house can be foreclosed on, even if you’re still making mortgage payments to someone else.

Alternatives to Property Tax Loans

The document reminds you that you have options: alternatives to a loan. For example, if you’re 65 or older, you can seek tax deferral. Or you always can look at other lending or borrowing options. Remember, always make the best decision for you and your situation.

Office of Consumer Credit Commissioner

Further information about property tax lenders is available from the Office of Consumer Credit Commissioner at www.occc.state.tx.us or (800) 538-1579.

The Texas Comptroller of Public Accounts has revised the Application for Homestead Residence Exemption form.

While the changes to the form are relatively minor, be sure to use the updated form when applying for a homestead residence exemption.

In addition to now providing a space for a spouse’s birthday, the form also now explains the documentation you’ll need to provide if you’re applying for a disabled veteran residence homestead exemption.

April 16 is the deadline to submit a rendition for your property. Not everyone needs to submit a rendition: generally, business owners or owners of property that produces income must turn in a rendition; it’s optional for everyone else.

For more details, see our post, “What Is a Rendition and Do I Need to Make One?”

The Texas Comptroller of Public Accounts has released a new document, Property Tax Basics, that covers all the essentials of your property taxes.

Property Tax Basics is divided into five chapters, most of which are short:

• Introduction
• Appraisal
• Equalization (Protesting)
• Taxation Review
• Collections

The English version is available here; the Spanish version will come out later this year.

This document is well-organized and gives a complete overview of property taxes–all in one place. It even includes brand-new 2011 legislative changes.

This video explains in detail the consequences of not paying property taxes for Texans.

For a property tax loan, visit Texas Property Tax Loans

How the Texas Homestead Tax Cap Works: in simple terms.

For homes that are receiving a homestead exemption, which is any property that the owner considers their primary residence, the appraised value may be lower than the property’s market value because of what the law refers to as the “homestead cap.”

Currently the law states that, while a property’s January 1st market value isn’t capped, the property’s appraised value is capped at a maximum increase of 10% from the previous year.

So, let’s say:

• The market value of someone’s home on Jan 1st is $200,000
• But, the year prior it was only valued at $170,000.
• This year’s appraised value would be $187,000, which is an increase of 10% from the previous year.

But in some situations, the value of the home can go down while the appraisal goes up.
Lets pretend that next year, something happens and:

• The home’s value drops from $200,000 to $190,000.
• The cap for that year would be $205,700.
• The appraised value would increase from $187,000 to $190,000.

and taxes would increase even though property value decreased.

To qualify for the cap, the owner must first receive the homestead exemption, then the value must increase more than 10% within a year.

For more informative tax articles and videos, visit fypllc.com.
For a property tax loan, visit TexasPropertyTaxLoans.com.

Happy New Year!

Today is the date a tax lien attaches to your property until your taxes are paid. This lien means that, if you don’t pay your taxes, the courts can foreclose and seize your property.

A tax lien is serious business. To get rid of the lien, pay your taxes.

Are you having difficulty paying your property taxes this year? Consider a property tax loan to pay off the lien and avoid fees and extra charges from the taxing authorities.