Failure to Pay Texas Ad Valorem Taxes

Tax season is a busy time of the year for taxpayers. You have to deal with tax obligations like income tax, business tax, and personal property tax, too. While in Texas, we do not have state property tax, we do have what is called Ad Valorem Taxes.

What are Ad Valorem Taxes?

Ad valorem tax is calculated as a percent of the value of the item without the requirement that some sort of transaction occurs for the tax to be imposed. If you own real estate or property, ad valorem taxes are levied by your local government counties, municipalities, school districts, and special taxing districts.

To get a better understanding of what these taxes are, let’s take a look at the Texas Legislative Council explanation of property tax levy:


What Happens If I Did Not Pay My Ad Valorem Taxes?

If it slipped your mind or maybe you are just financially unable to pay your Texas property and personal property ad valorem taxes, you are probably wondering what will happen if you did not pay your ad valorem taxes on April 15th.

Each year on January 1st, the Texas Tax Code attaches a tax lien to all taxable real property and personal property in Texas. This is automatically done and takes precedence over any other liens that a secured lender may have mandated at the time the loan was executed. So, if you own taxable property but failed to pay the ad valorem tax within the Texas tax law dates, unfortunately, the tax due becomes delinquent.  With any delinquent taxes, they begin to incur penalties and interest which steadily increases the amount due. If for any reason the delinquent taxes, penalties, and interest are not paid, you can be sued by the taxing jurisdiction and could even face foreclosing due to the tax lien.  This, in turn, can go on to hurt your credit and possibly put in financial ruins, so it is very important that you do everything you can to pay your ad valorem taxes.

What Should I Do If My Ad Valorem Taxes Are Too Expensive to Pay

If your ad valorem taxes are too expensive, you have an option. Your ad valorem taxes are determined by the fair market value of your property, which is calculated by an appraiser. If you feel the appraisal value is too high, you have the right as a taxpayer to appeal it. This can sometimes result in minimizing your cost and make it easier to pay.

Get Texas Ad Valorem Tax Consulting Help

When filing an appeal, you will have to appear before the Appraiser Review Board (ARC). To help you reduce your property tax expense, it is important that you have a property tax consultant who has experience.

At Hegwood Group, LP, our tax consultants are all former county appraisers themselves so we understand what it takes to successfully appeal a decision before the ARC. If you feel the decisions by the appraisal is incorrect, you don’t have to go about it alone. Contact us today to get help with your ad valorem taxes today.

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