Texas Property Tax Consultant Practice Exam

What is the penalty for a delinquent tax for the first month?

1. 20% for the first month, plus 1% for each additional month

2. 6% for the first month, plus 1% for each additional month

3. 5% for the first month, plus 2% for each additional month

4. 10% for the first month, plus 2% for each additional month

The correct answer is: 6% for the first month, plus 1% for each additional month

The penalty for a delinquent tax in Texas for the first month is set at 6%, which is outlined in the state's property tax code. This penalty applies to the amount of the unpaid taxes and is assessed for the first month after the taxes become delinquent. Following the initial month, there is a progressive penalty schedule that adds an additional 1% for each subsequent month that the tax remains unpaid. This structure is designed to encourage timely payment and discourage prolonged delinquency. Understanding this penalty framework is vital for property tax consultants as it impacts both the advice they give to clients regarding payment timelines and the calculations they make concerning any potential outstanding property tax liabilities.