Upcoming Deadline Means Larger Penalties for Missed Payments

McKinney, Texas (PRWEB) June 04, 2013

Property owners unpaid taxes penalty rates jump on July 1, 2013 due to delinquent tax provisions in the Texas Property Tax Code. Property owners missing tax deadlines likely anticipate fees and penalties, but may be unaware of the drastic increase those fees will incur with missed payments as of the July 1 deadline, as referenced in a 2012 article in Tierra Grande co-authored by Dr. Charles E. Giluland of Texas A&M University.

Typically, property taxes unpaid by February 1 each year immediately increase with a 6 percent penalty fee and 1 percent interest, for an increase of 7 percent. According to Section 33.01a of the Texas Property Tax Code, there is an additional 1 percent interest added each month prior to July 1 of the year in which it becomes delinquent. However, a tax delinquent on July 1 incurs a total penalty of 12 percent of the amount of the delinquent tax without regard to the number of months the tax has been delinquent, stated in Section 33.01a.

According to Gilulands article, Texas Property Tax Code also allows taxing units to contract with law firms for collection of delinquent taxes with compensation penalty, adding another 20 percent of the total delinquent tax plus penalty and interest {Section 630}. In an example provided in the article, a property with a $ 10,000 tax liability would initially owe $ 10,700 in February. As of July, that amount would jump to $ 11,800. Adding the 20 percent attorney fees, boost the July payment to $ 14,160, an annual compounded cost of 71.62 percent of the original $ 10,000 tax liability.

Property owners are wise to seek help of property tax specialists early on in their delinquent payments, according to Jim Ferguson of Safe Texas Investments, Ltd, a licensed property tax lender. If property owners taxes are not paid by July 1, 2013, the penalty and interest will equal 42 percent of the original tax bill on a $ 10,000 tax liability, Ferguson said.

Seeking the help of a qualified professional that knows the nuances of Texas property law is especially important as these provisions are concerned, Ferguson said. He continued, To most efficiently and swiftly resolve property tax concerns it is important to go to a trusted institution with licensed professionals that can offer you the expertise that you need when dealing with tax concerns, Ferguson said. The Texas Property Tax Lender License Act requires all property tax lenders to be licensed by the state and requires a separate license for each office a lender operates, as regulated by the Office of Consumer Credit Commissioner (OCCC) and the Texas Finance Commission. Safe Texas Investments, Ltd. licensed property tax lender offers no out-of-pocket closing costs in their loan application, same day approvals and affordable monthly payments, according to Ferguson. They are also a member of Texas Property Tax Lien Holders Association, which adheres to a strict code of professional ethics that governs property tax loan operations, Ferguson said.

Safe Texas Investments Ltd. offers decades of lending experience, with an emphasis on property tax services. They work with clients to solve delinquent property taxes for commercial, residential, farm and mineral rights, as well as raw pieces of land in the State of Texas. To learn more about Safe Texas Investments or to apply for a property tax loan, visit their website at http://www.safetexasinvestments.com.

Notes to Editors:

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