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AD VALOREM TAXES ARE PROPERTY TAXES
Are Ad Valorem tax liens priority liens over all voluntary liens in Texas?
Yes. Property taxes (based on the value of the property) are required by law to be assessed and available on the tax rolls by October 1 of each year.
Realistically, the tax rolls are usually not available on October 1, but are available in the months of October and November.
What tax exemptions are available?
There are several exemptions available to property owners in the State of Texas:
* Homestead * Over 65 * Disabled * Agricultural
Check with each taxing authority office regarding your exemptions.
When are taxes payable?
Taxes become a lien on January 1 of each year. However, they cannot be paid until October 1st. Some taxing authorities give a varied percentage discount if paid early (between October and January). Taxes become delinquent after January 31, of the next year.
When is the tax lien imposed?
Even though the taxes for the year are not assessed and payable until near the end of the year, the law automatically imposes a superior lien against all real property on January 1 of every year to secure payment of the taxes for that year.
The superior lien being applied January of each year requires the prorating or apportioning of taxes between seller and buyer, if a sale takes place between January and October.
How are taxes pro-rated at closing?
Pro-rations at the time of closing allow the seller to give the buyer that portion of the taxes that the seller is liable for (from the first of the year) so that when the taxes are payable in the fall of the year the buyer or his lender will have all the funds required to pay the taxes due for the whole year.
