Split payments: are they for you?

Published by Research Editor on September 10th, 2012 - in Taxes

One strategy for paying your property taxes is to split them into two payments. You can pay the first payment for your 2013 taxes on or before November 30, 2012. The second payment isn’t due until June 30, 2013.

Am I eligible?

Check your property tax bill. The law requires that your bill will explain the split payment option, if it’s an option in your county.

Advantages

If you don’t have the entire payment available on January 1, 2013, splitting your taxes eases the burden of trying to pay an enormous lump sum.

Disadvantages

However, you have to pay the first half of your property taxes 32 days early (on November 30, 2012 instead of January 1, 2013).

What should I do?

If you know you won’t be able to pay your 2013 taxes on January 1, you have two viable options:
1) Pay half the taxes by November 30 and the rest before July.
2) Get a property tax loan and pay it back according to the terms of your agreement.

For more information on splitting your property tax payments, see the Texas Property Tax Code.
For more on property tax loans, see Texas Property Tax Loans.

© 2013 FYP, LLC.