Installment Payments on Certain Property Not Damaged in a Disaster or Emergency

How it works

Tax Code Section 31.033 allows taxing units in a disaster area or emergency area to provide an installment payment option for certain businesses that own or lease real and personal property that has not been damaged as a result of the disaster or emergency.

What the money covers

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

Amounts and schedule

Taxes are paid in four installments:

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

No penalty or interest applies if the schedule is followed.

How to apply / use

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

Timing and deadlines

• Applies to taxes on the tax bill before the first anniversary of the disaster or emergency.
• If a payment is missed, the owner faces a 6% penalty plus 1% monthly interest.

Business note

Eligibility depends on business gross receipts being below a threshold that the Comptroller adjusts annually.