Elizabeth from Dallas asked me the following question: “If a lawsuit is filed to collect delinquent property taxes, who pays for it and how much does it cost?” The short answer to this is that the delinquent taxpayer pays the costs associated with a lawsuit to collect a delinquent tax, and it is quite expensive.
Filing a law suit to collect a delinquent tax is an expensive and time consuming act. This law firm will generally not file a law suit to collect a tax unless prior efforts to collect the unpaid tax have been unsuccessful. If a law suit is filed, however, the costs of that lawsuit are not paid by the local government but by the delinquent taxpayer. Texas Property Tax Code §33.49 provides, in part, that: “… a taxing unit is not liable in a suit to collect taxes for court costs, including any fees for service of process, an attorney ad litem, arbitration, or mediation, and may not be required to post security for costs. ***” So even though the taxing unit files the lawsuit, these costs are instead collected from the delinquent taxpayer.
The costs of a lawsuit vary, but some of the typical activities relating to a lawsuit and an estimate of the associated costs are:
ACTIVITY |
ASSOCIATED COST (ESTIMATE ONLY – VARIES BY COUNTY) |
|
$250-$350 per tract to identify persons with “interest” in property |
|
$150-$175 |
|
$55-$75 per defendant, per attempt (amount varies if defendant is out of county/state) |
|
$55-$75 per defendant, per attempt (amount varies if defendant is out of county/state) |
|
$55-$75 per defendant (amount varies if defendant is out of county/state) |
|
$Cost varies, generally $400-$500 total |
|
$25 per claim |
|
~$500 per side/half day (cost varies most cases are ordered to mediation prior to trial) |
|
$Cost varies per Court Order (based on number of defendants Ad-Litem represents — $350-$750) |
|
$150-$175 for the party requesting |
|
$8-$10 |
|
$8-$10 per page |
|
$8-$10 per request other associated cost varies |
|
~$300 per property |
|
~$300 per request |
|
Determined by Sheriff’s Department |
|
~$25 |
Each lawsuit is different and not all lawsuits will incur all of these costs. The following are some lawsuit scenarios and an estimate of the total associated costs:
|
~$625 |
|
~$685 |
|
~$1,500 |
|
~$2,300 |
These are estimates only, but as you can see, different lawsuits will have different total costs and each scenario is very expensive. It’s better to pay the delinquent taxes BEFORE a lawsuit is filed and save the money for other things. Nonetheless, if a lawsuit is filed against you to collect a delinquent tax, please consult a competent lawyer of your choice. This article is for informational purposes only and is not a substitute for good legal counsel. Your lawyer will be able to advise you of your legal rights and obligations and provide you with an estimate of the costs you will be responsible for in the lawsuit.
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