It's a new year, and every new year comes with it the responsibility to pay your real estate property taxes, otherwise known as "amilyar." It's a necessary evil of owning land and property, so don't worry about it and just grin and bear it. After all, it's all worth it, right? (sound of silence and crickets)Anyway, just for your information, and as sort of a guide, this here's a short post (really! I promise!) on the topic of real estate property tax.
Collection of Real Property Tax
The real property tax for any year shall be due on January 1 and from that date on, it shall constitute a lien (statutory lien) on the property, to be extinguished only upon payment of the tax and/or any late fees associated with it. The tax may be paid in four (4) quarterly installments, which shall be paid on or before the last day of the quarter.
Installment Due Dates:
- 1st installment - on or before March 31
- 2nd installment - on or before June 30
- 3rd installment - on or before September 30
- 4th installment - on or before December 30
Tax Discount on Advanced and Prompt Payment
If the tax is paid on time or in advance, in accordance with the prescribed schedule of payment as provided in Article 341 of Republic Act 7160, you may get a discount not exceeding twenty percent (20%) of the annual tax due. Prompt payments may be given a discount of ten percent (10%) while advanced payments may be entitled to the maximum discount of twenty percent (20%).
Penalty For Late Payments
Unpaid real property tax is subject to a penalty of two percent (2%) per month interest accruing up to a maximum of 36 months or 3 years.
In other words, the penalty only starts accruing after March 31. So if you want to save some money, I suggest you pay your real property taxes well in advance, if you can afford to do so. Might also be a good idea to start putting that into your annual budget so you can plan for it in advance.
Till next time, Happy New Year!!!
Jon
*Image above from discoverspringtexas.com, used without permission.
