Delinquent property tax in the Permian Basin

Values, rates and exemptions

Midland Central Appraisal District values property in Midland County ^[1], and Ector County Appraisal District does the same in Ector County ^[2]. Midland County posts its adopted tax rate and truth-in-taxation documents ^[3].

Exemptions lower the bill; the Comptroller lists the homestead, over-65 and disabled-veteran exemptions ^[4]. If the value is wrong, the Comptroller explains protests and appeals ^[5].

Penalty and interest

Tax Code § 33.01 sets a 6% penalty for the first month of delinquency, rising 1% a month to 12% on July 1, plus 1% interest per month — roughly 18% combined by July 1 ^[6]. Under § 33.07 a taxing unit can add a further collection penalty when it refers the account to an attorney ^[6].

Homeowners who are 65 or older, disabled, or qualify for the disabled-veteran exemption can defer collection on a residence homestead by filing under § 33.06 with the appraisal district ^[6].

Suits, sales and redemption

After a tax suit and judgment, Tax Code § 34.01 provides for a sale by the officer — in practice the sheriff or a constable — in the manner of an execution sale ^[7].

A former owner can redeem. For a residence homestead, land with an agricultural designation or a mineral interest, § 34.21 allows redemption until the second anniversary of the recording of the buyer's deed; for other property the period is 180 days ^[7]. Mineral owners should note that mineral interests get the longer redemption period.

Redemption is not free. The owner pays the purchase price plus a statutory premium and certain costs, so stopping the sale beforehand is almost always the cheaper route.

A tax suit names everyone with a recorded interest, which can include a lender or the IRS if it has filed a lien. Do not ignore the citation; a default judgment moves the property toward sale.

Mineral interests are taxed separately from the surface in Texas, so a mineral owner can be delinquent on a royalty interest without owning any land in the county. Check the appraisal district's mineral roll for your name, especially after inheriting an interest.

If you also owe the IRS

Local property-tax liens generally come ahead of a filed federal tax lien ^[8]. The IRS housing allowance already includes property tax: $2,263 a month for one person in Midland County, $1,950 in Ector County and $2,654 in Martin County ^[9]. A plan that ignores the county bill is likely to fail.

Texas protects wages from ordinary garnishment ^[10] and homesteads from most creditors ^[11], but neither protects property from the tax assessed on it.

When money is tight, pay the county bill on the homestead first and tell the IRS why. Losing the house to a tax sale ends the property-tax debt but also the home, while the IRS can usually wait on a documented hardship ^[12].

Next steps

Get the account statement from the county tax office, confirm your exemptions, and note the next penalty date and any suit. The Midland County website lists county contacts ^[13], and Ector County's site does the same ^[14].

If the bill is large, ask the tax office about a payment agreement. Texas law allows installment agreements for delinquent tax on a residence homestead in many cases, and setting one up before a suit is filed is far cheaper than after ^[6].

Then call. The first call is free, and you get a real professional instead of a national call center.