Installment Payments on Certain Property Damaged in a Disaster or Emergency

How it works

Tax Code Section 31.032 allows homeowners, other certain residential property owners, and small businesses whose property is located in a disaster area or emergency area and has been damaged as a direct result of the disaster or emergency to pay taxes in four installments.

What the money covers

This is a payment option for property taxes imposed by all taxing units on the tax bill before the first anniversary of the disaster or emergency.

Amounts and schedule

The taxes are paid in four installments:

• First installment due before the delinquency date, usually Feb. 1
• Second installment due before April 1
• Third installment due before June 1
• Fourth installment due before Aug. 1

No penalty or interest applies if the schedule is followed.

How to apply / use

The property owner must make the first installment payment and provide notice that the remaining taxes will be paid in three equal installments before the delinquency date.

Timing and deadlines

• Must use the option before the delinquency date, usually Feb. 1.
• Applies to taxes imposed on the tax bill before the first anniversary of the disaster or emergency.
• If a payment is missed, a 6% penalty plus 1% interest per month of delinquency applies.

Business note

For small businesses, eligibility includes real and personal property owned or leased by a business entity with gross receipts under an annually adjusted threshold.