Texas Property Tax Consultant Practice Exam

If a motion pursuant to Section 25.25(d) results in a value correction, what is the consequence for the taxpayer?

1. They must pay the taxes in full within 21 days

2. They will face a late correction penalty of 10% of the original tax amount

3. They will be charged a late correction penalty of 10% of the corrected tax amount

4. They will incur a late correction penalty of 25% of the corrected tax amount

The correct answer is: They will be charged a late correction penalty of 10% of the corrected tax amount

When a motion pursuant to Section 25.25(d) results in a value correction, the consequence for the taxpayer involves a specific late correction penalty. The correct answer indicates that the taxpayer will be charged a late correction penalty of 10% of the corrected tax amount. This provision is designed to encourage prompt payment of property taxes and ensures that adjustments to valuations resulting from the corrections do not lead to undue financial burden on the taxpayer. The penalty applies specifically to the corrected amount, rather than the original amount, ensuring that the focus is on the adjustments made rather than previous assessments. In this context, differentiating between the original and corrected amounts is crucial. While the other choices suggest different penalty rates or requirements, the law specifically outlines a 10% penalty on the corrected amount, reflecting an understanding that while mistakes may occur in valuation, the obligation to pay taxes—albeit with an adjustment—remains. This accurate alignment promotes fairness in how taxpayers are held accountable after a correction has been made.