Why do Texans Need Property Tax Loans?

Published by Research Editor on June 13th, 2015 - in Loans

Property tax lending is a growing, maturing industry that makes thousands of property tax loans each year. Why are so many people looking for property tax loans?

Property Tax Burden

As 14th highest state in property taxes, Texas’ property taxes are 19.6% above average. In a report for the Texas Public Policy Foundation, Kathleen Hunker suggests, “Texas has imposed a mounting property tax burden that has outpaced its citizens’ growth in personal wealth.”

High Percent of Income

Based on data in the American Community Survey by the US Census Bureau, Hunker states that Texans paid a whopping 4.8% of their household income to pay their property taxes.

Tax Rates Climb Faster

Not only is 4.8% a large percent of household income, but the property tax rates climb faster than income does. Property tax rates have risen an average of 6.3% since 1991, compared to 2.7% of income increase.

Loan Solution

As Texans struggle to keep up with the increased demands, many turn to property tax loans as a way to avoid hefty costs of defaulting on their taxes.

© 2013 FYP, LLC.