Commercial Property Tax Loans
Commercial property tax loans are issued to help property owners pay property tax owed on property that is used for commercial purposes. Commercial property includes real property such as office buildings, warehouses, apartment buildings, factories, land, and other pieces of real estate that are used for a business purpose, as well as tangible personal property such as machinery, equipment, supplies, and inventory.
The property tax lender provides the cash to satisfy a business’s instant tax obligation in full. Then, the lender enters into a repayment plan with the borrower that allows the borrower to repay the loan over an extended period of time at an interest rate much lower than the late fees and penalties that the government would charge if the business’s property tax bill remained unpaid.
Just like Texas authorizes counties to assess property tax on residential property based on the property’s assessed value, it also authorizes counties to assess property tax on the value of commercial property. Commercial property owners typically receive their property tax bill around November of each year, with the due date generally no later than January 31 of the next year. This gives commercial property owners about two months to get their affairs in order with respect to their annual property tax before it becomes overdue.