How Property Taxes Are Handled in Texas

Property taxes in Texas are collected by county tax assessor-collectors, who attach a lien to every residential and commercial property on Jan. 1, which stands until the bill is paid.  If taxes remain unpaid after June 30, taxing entities can add as much as 42 percent in penalties and interest.

Most counties refer delinquent property tax accounts to an attorney for enforced collection.  At this point, the property owner may incur an additional penalty of up to 20 percent of the total taxes, penalties, and interest due. The attorney also has the legal authority to foreclose.

Once a property tax bill is delinquent, a licensed tax lien financing company can offer the property owner the option of transferring the lien to a private entity in return for a payment plan, known as a tax lien transfer. This enables the property owner to pay back the financing company over time. Home Tax Solutions, for example, offers payment plans of up to 10 years.

Tax lien transfers ensure that the taxing entities get the tax funds they need for schools, streets and other services.

The tax lien transfer option has kept thousands of Texas property owners out of foreclosure by providing them with much needed flexibility in paying off their property tax bills. Licensed tax lien financing companies in Texas transfer approximately 15,000 liens annually, helping owners resolve delinquencies and stay in their homes and businesses.