3 Reasons Why You May Want to Pay Your Property Taxes Early
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3 Reasons Why You May Want to Pay Your Property Taxes Early
Tax Code Section 31.01 requires the assessor to prepare and mail a tax bill to each property owner listed on the tax roll or to that person's agent by Oct. 1. The last day to pay taxes without delinquency is Jan. 31, with your taxes showing as delinquent on Feb. 1.
However, it may be highly beneficial for most business leaders to pay their property taxes long before the Jan. 31 date, and here's why.
1. Deduct Payments from Federal Income Taxes
Most property owners pay their property taxes before the year's end to deduct the payments from their federal income taxes. When you pay your property taxes, keep your payment receipt as it will be needed to claim the deduction on your federal income tax return.
2. Avoid, Penalties & Intrest Charges
In most cases, you must pay your property taxes by Jan. 31. Taxes that remain unpaid on Feb. 1 are considered delinquent. Subject to penalty and interest charges added on top of the original amount.
3. 3-2-1 Discount Option
Tax Code Section 31.05 allows the governing body of a taxing unit to adopt discounts for persons who pay their taxes early. October-November-December or 3-2-1, 3% discount if you pay your taxes in October, 2% in November, and 1% in December. Not all taxing units offer this discount, so ensure you ask your taxing unit or property tax advisor to see if your business qualifies.
While the benefits noted above are just a few reasons to pay your property taxes early, it's essential to identify all opportunities available for reducing your business property tax liabilities.
Don’t Pay More than Your Fair Share of Taxes
Don’t let the convoluted process of managing your business property taxes lead to over-taxation. At J. Joseph, each year, our proprietary Trendulation™ business process helps save our clients millions in overlooked property tax savings.
With core practices in Compliance, Consulting, Recovery, and Advocacy, our JJC 360° approach exhausts every avenue to reduce your annual property tax liabilities & mitigate penalties, interest, and over-taxation.
Our property tax advisors know how overwhelming and time-consuming the convoluted process of managing your property taxes can be. Rest easy as your team of J.Jospeh property tax advisors leave no stone unturned in the pursuit of reducing your business property tax liabilities.
Identify if your business qualifies for more exemptions, and request your complimentary property tax consultation today.
